Other Debt Management Procedures
There are a range of other debt procedures – some of which do not need an Insolvency Practitioner to administer. Care needs to be taken to ensure that you the debtor are properly protected – it is all too easy to agree under creditor pressure to an unworkable or illogical deal.
Accordingly, take Professional Advice before signing up to these deals which include:-
- Administration Order
- Debt Management Plan
If you have debts of less than £5,000 owed to at least two creditors and have a County Court judgement against you, you can apply to the Court for an Administration Order. Each month you make an agreed payment to the Court, which will distribute a pro-rata payment to each of your creditors. It will take a 10% fee for its costs.
Whilst the order is in place, no creditor can bring an action against you. Debt collection procedures will also be stayed. If you do not comply with the Order, it can be revoked, although it is possible to apply for a reduction in the size of monthly payments.
Gibson Hewitt will be happy to advise you on these procedures and to work out the scale of your monthly payments.
Debt Management Plan
There are companies who specialise in Debt Management Plans. We do not deal with these. These deals are very much a one size fits all approach to debt problems and do not provide any relief from the quantum of the debt; the deal merely cash flows forward the repayments which may last many years.