![\"Debt](\"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-content\/uploads\/2020\/02\/254-1024x683.jpg\")
<\/figure>\n\n\n\nA Debt Management Plan is a plan to repay all of the debt but at a slower rate and over a longer period of time than originally contracted. Since Debt Management promises full repayment of the debt, creditors prefer you adopt that approach rather than if you were to go bankrupt \u2013 in which case they might only recover a small amount of the debt from you. If you were to enter an IVA instead creditors would expect to recover less than half of your debt but it is still better than bankruptcy for the creditors.<\/p>\n\n\n\n
Can you enter a Debt Management Plan if you are Solvent?<\/h2>\n\n\n\n
Yes, you can. Debt Management is really an informal process with no comprehensive legislation governing the process. Although your income and assets may be sufficient to pay off your debts in full in accordance with the terms of your contracts with your creditors you might be unwilling to carry out some of the necessary actions to achieve this. You might, for example, be unwilling to sell your home. By entering a Debt Management Plan\u00a0you might be able to manage your finances in a more orderly way and sell or re-mortgage your property at a time that suits you or when the market is more favourable or when re-mortgage terms are more reasonable.<\/p>\n\n\n\n
Can you prevent your neighbours from learning about your Debt Management Plan?<\/h2>\n\n\n\n
While there are no guarantees that your Debt Management Plan can be \nkept from the attention of your neighbours, a few practicable steps will\n minimize the likelihood of them finding out. Assuming that none of your\n neighbours is a creditor of yours, then provided you behave discreetly \nin your communications with your creditors and with the debt management \nservice provider you choose to use, then you can have a reasonable level\n of confidence that your neighbours will not be aware of your Debt \nManagement Plan. Commercial debt management service providers as well as\n CCCS, CAB and Payplan all offer complete confidentiality and privacy in\n their dealings with you and no information should be disclosed by them \nto any third parties such as your neighbours or your employer. Only your\n creditors will be contacted and you will have to agree in advance \nbefore even that can happen. The norm is to give your DMP service \nprovider written authorization to contact your creditors and to \nnegotiate with them on your behalf.<\/p>\n\n\n\n
Can you combine Debt Management and an IVA?<\/h2>\n\n\n\n
Not at the same time or by the same person. You could enter Debt \nManagement for a period of time and subsequently enter an IVA. Why would\n you do this? One reason is that your current circumstances lack the \nstability needed for an IVA at present but that after a limited period \nsufficient stability might be established. For example, you might be \nundergoing divorce proceedings and there might be a lack of clarity \nrelating to future income or in relation as to how the marital assets \nare to be divided. It might make sense for you in such circumstances to \nenter a Debt Management Plan until your divorce and its settlement terms\n are finalized and then to enter into an IVA if the divorce should \nresult in your insolvency. Similarly, you might be made redundant and \ndecide to become self-employed as for example a taxi driver. Creditors \nwould be likely to reject proposals for an IVA before you established \nsome self employed trading history and thus a short duration Debt \nManagement might be the best course for you.<\/p>\n\n\n\n
Can you Enter Debt Management in Ireland? <\/h2>\n\n\n\n
The only practical solution available to distressed debtors who find \nthemselves personally insolvent in Ireland is to enter a Debt Management\n Plan with their creditors. While bankruptcy is theoretically available \nas an option, the cost of the process and the draconian sanctions \nattached to it make it an impracticable route for personal insolvency. \nOnly a handful of bankruptcies occur each year in Ireland. There is no \nequivalent process to the IVA in the UK available to Irish citizens. The\n government funded Money Advice and Budgeting Service (MABS) offers \nadvice to debtors. However, that organization does not have the \nresources to manage debt management plans to the extent that the \ncommercial Debt Management Plan providers can offer. The Irish \nGovernment has been for some time now been considering introducing \nlegislation in line with the recommendations made by the Law Reform \nCommission last year. Should such legislation be enacted, it is likely \nto include an IVA type solution as well as a controlled DMP type \nsolution. There are no plans to reform the Irish bankruptcy laws at \npresent and it is unlikely to happen for many years, given the \ncomplexity of the necessary legislation and the current crisis in Irish \ngovernment finances.<\/p>\n\n\n\n
Advice<\/h2>\n\n\n\n
Before opting for a Debt Management Plan you should consider the pros\n and cons of other possible solutions such as an IVA or bankruptcy and \nseek professional advice from one (or more) of the many firms offering \ninsolvency services. They use the services of specialists called \nInsolvency Practitioners who will provide you with free advice outlining\n all your options. You should also consider contacting CAB or the CCCS \nand you may even have to take independent legal advice.<\/p>\n","protected":false},"excerpt":{"rendered":"
A Debt Management Plan is a plan to repay all of the debt but at a slower rate and over a longer period of time than originally contracted. <\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_seopress_robots_primary_cat":"none","_seopress_titles_title":"","_seopress_titles_desc":"","_seopress_robots_index":"","footnotes":""},"categories":[4],"tags":[],"class_list":["post-12803","post","type-post","status-publish","format-standard","hentry","category-debt-management-articles"],"_links":{"self":[{"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/posts\/12803","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/comments?post=12803"}],"version-history":[{"count":1,"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/posts\/12803\/revisions"}],"predecessor-version":[{"id":12809,"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/posts\/12803\/revisions\/12809"}],"wp:attachment":[{"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/media?parent=12803"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/categories?post=12803"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/tags?post=12803"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}