How do I apply for a DMP?
To get started, contact us via phone, WhatsApp, LiveChat, or our online form. Setting up a DMP is a straightforward process – one of our advisors will help you put together a budget to figure out how much you can realistically afford to pay towards your debts. It typically takes just a few days to set up a DMP.
What happens if a settlement offer is rejected?
If your creditors don’t accept the settlement offer, you can still use your lump sum to reduce your debts and explore other debt solutions.
How will a debt settlement affect my credit rating?
It depends on the type of settlement you do. A full settlement will appear as “fully satisfied” on your credit file. Partial (or short) settlements will be marked as “partially satisfied” and remain on your credit file for six years. Your creditors will update your credit file after the settlement is completed.
Do I have to pay a fee if I settle through PayPlan?
No – our debt settlement service is completely free. Some third-party providers charge a fee, so be sure to check before deciding how you want to proceed.
Do I need to stick to a budget in a DRO?
Yes, our team will work with you to create a budget based on your current circumstances.
You can use this to help you complete your DRO application.
Your budget must be realistic and sustainable, and cover all essential household living costs.
The DRO intermediary will discuss with you, prior to submission, any areas of your essential living costs that the Official Receiver may consider high or low to ensure that your budget is realistic.
The Official Receiver has budget guidelines they consider when approving or declining a DRO application.
If your situation changes after you enter a DRO, including your income or expenses, you’ll need to notify the Official Receiver as soon as possible.
How will my credit score be affected by a DRO?
A Debt Relief Order (DRO) will appear on your credit file for six years from the date it’s approved. This means you could find it harder to borrow or be offered higher interest rates if you apply for credit cards, loans, mortgages or other credit in future.
Can a Debt Relief Order stop bailiffs?
Yes, a Debt Relief Order (DRO) can stop bailiffs, but only from taking control of goods for debts included in the DRO. However, if bailiffs have already taken control of goods, or if there’s a controlled goods agreement (CGA) in place, a DRO may not stop them. It’s important to discuss your situation with your debt advisor to ensure all steps are taken to protect you.
Will my income be affected?
If you have surplus income and aren’t on state benefit-only income, you may need to make payments toward your debts for up to four years. Your Trustee will assess your income and essential living costs to determine if payments are required.
How does sequestration affect my credit rating?
Sequestration can impact your finances. It will be recorded on your credit file for six years, which may make it harder to get credit, loans, or a mortgage. You may face restrictions applying for credit over £2,000 without disclosing your sequestration.
How long does sequestration last?
Usually, you’ll be discharged from sequestration after one year. If you’ve entered sequestration through the MAP (Minimal Asset Protection) route, you’ll be discharged after six months.