"There was a lot of other stressful issues going on in my life at the time of the bankruptcy and I have to say without Stuart’s advice and help I don’t think I would have gotten through it as well as I have. I cannot thank Oakdale enough. I would recommend them very highly."

BUSINESS INDIVIDUALS

What are Debt Management Plans (DMPs) and how do they work?

A Debt Management Plan (DMP) enables an individual to pay back their debts over a period of time. The creditors will usually freeze all interest and stop applying charges if they are asked to do so. Such arrangements can be made by the debtor direct with the creditors or via a debt advisory firm.

Whatever the level of debt and amount of disposable income, the individual needs to treat creditors fairly by making pro rata payments. i.e. if there is £200.00 per month disposable income after all essential expenditure and one creditor is owed 50% of the overall debt, they should be offered £100.00 per month.

Over the last few years, strict rules surrounding DMPs have been imposed on debt advisory firms and lenders by the Financial Conduct Authority. Hundreds of thousands of people have been wrongly advised to enter into DMPs, and the plan has not ended up helping the debtor. In fact in many situations it left them in a worse position.

As a company we don’t particularly like advising DMP’s because over 95% of the time there is a better alternative that can help preserve assets and solve the client’s debt problem much quicker. If however, we believe a DMP is right for you then we will advise and assist with one.