Debt Management Plan
A DMP is an agreement between you and your creditors to pay all of your debts. You make regular payments to a licensed debt management company. The company shares this money out between your creditors charging an initial set-up fee and an ongoing handling fee every time you make a payment.
Your creditors can continue to contact you throughout the life of your plan and can cancel your plan if you do not keep up payments. Unlike an IVA, your asset protection is not guaranteed. Many people who do not qualify for an IVA opt for a DMP until they can re-apply.