For a DMP to be productive a debtor needs to show they are agreeing to do everything they can to pay back their debts as timely as possible. In return for this commitment creditors may reduce or stop interest rates and agree to a decreased monthly repayment.

Every one of your creditors will be notified by your DMP practitioner, of the specifics of the debt management plan. They can then choose whether they consent or not with the proposal.

Not all DMP operators work promptly when circulating the proposal to creditors, for this reason it is a beneficial idea to find out when this phase of the debt management plan process will take place prior to signing the complete documentation.

Your creditors will then have an opportunity to respond. There are three choices for creditors, reject the proposal, accept the terms as they are or suggest specific changes which would allow them to agree to the offer. Such adjustments might include a rise in the proposed repayments if they believe that such an increase is achievable and fair.

Co-operation normally follows a DMP proposal when it's apparent that the current scheduled repayments cannot be sustained and when the repayment proposals are deemed to be fair. Fairness is measured by judging the earnings and expenditure statement that the debt management practitioner will circulate along with the payment offer.

Creditors can choose to use other methods of recovery if they feel it is appropriate. This can include legal measures for example, pursuing a County Court Judgment (CCJ). After this is attained other recovery measures, potentially including the use of bailiffs, bankruptcy procedures or charging orders become a possibility. With regards to DMPs, using bailiffs or bankruptcy is very rare as increased recovery is unlikely. Charging orders may be used to "secure" debts where equity exists in a property. Providing the details of a charging order are achieved it should not lead to the loss of a home.

Of all proposals, most reputable DMP practitioners find that 90% are agreed by creditors. Interest and charges are also often suspended in these cases.