Debt Management Plan (DMP)
A Debt Management Plan is an informal arrangement with your creditors, this arrangement is managed via a third-party debt management company, or some charities can offer them free of charge. You would make one affordable payment to the third party which is calculated by completing an income and expenditure review, and this would be distributed amongst your unsecured creditors.
Advantages
- One monthly payment
- Sometimes creditors will agree to freeze interest and charges
- If you use a charity, there will be no fee
Disadvantages
- A debt management plan is not normally recommended if it would last 10 years or more
- Your creditors are not under an obligation to agree to the arrangement or to freeze interest and charges
- Your credit file will be negatively affected for at least 6 years
- Certain debts cannot be included within a DMP such as tax debts and court fines
- You will have to pay all your debts in full plus any charges that may apply
Parkfield Insolvency will not charge you a fee for initial information and signposting. If you were to proceed and implement a recommended debt solution where fees are applicable, full details will be provided before setting up. Parkfield Insolvency proposes and administers Individual Voluntary Arrangements (IVAs). Advice is provided on the basis that there is reasonable contemplation of an insolvency appointment, once it is apparent that an IVA is likely to be the most appropriate debt solution. The debt solutions offered by Parkfield Insolvency Limited only apply to residents of England, and Wales.
Parkfield Insolvency is a trading style of Parkfield Insolvency Limited, Company Number 14371483, registered in England and Wales, at Dalton House, Cross Street, Sale, M33 7AR.
Peter Jackson is authorised by the Insolvency Practitioners Association to act as a Licensed Insolvency Practitioner.
To qualify for an IVA with Parkfield Insolvency, you must have a minimum of £6,000 of qualifying unsecured debt owed to two or more creditors
There is potentially a debt write off in some IVAs. However, the amount of debt written off differs for each customer depending upon their individual financial circumstances and is subject to the approval of their creditors.
Data Protection Act Registration Number – ZB399874. To find out more about managing your money and getting free advice, visit Money Helper, an independent service set up to help people manage their money.
