July, 2019

A DMP is an informal debt mediated solution for unsecured debt. If you have debts of more than £1,500 and owe monies to more than one creditor, a DMP could be the best solution for you.

At Navigate Business Recovery, we provide expertise in dealing and negotiating with your creditors to restructure your debts and reduce your monthly payments. The minimum amount you have to pay is usually £100 per month which is then distributed equally between your creditors.

In order to avoid bankruptcy and by entering a DMP, we can liaise with the creditors on your behalf and arrange to have the repayment term extended from the original agreement.

What are the Pros and Cons of a Debt Management Plan (DMP)?


• As opposed to bankruptcy or IVA, a DMP is a more informal arrangement
• Reduced monthly payments
• Some creditors may temporarily stop interest payments on the plan
• Creditors may well freeze interest payments as part of the plan
• Upon reaching an agreement with the creditor/s, particular county court judgements (CCJ’s) may be suspended


• As a DMP is an informal arrangement, due to the inflexibility creditors can sometime change their minds
• A DMP can still adversely affect your credit rating
• The debt may still incur interest
• Although reduced monthly payments may seem attractive, it will take longer to pay off the debt
Please feel free to contact Vee Bharakda at Navigate Business Recovery on 07961-116321 or 01494-786000.

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DISCLAIMER This blog / article is for information and interest only. It is not a substitute for full professional advice, which will take account of the specific and individual circumstances surrounding your matter. Navigate Business Recovery Limited cannot accept any responsibility for any loss arising as a result of any person or organisation acting or refraining from acting on any information.