Frequently asked Questions



(Q) Can I skip paying my creditors (the people I owe money to)?

NO!

Missing payments to creditors other than through court order, may result in the following...

  • Reposession and sale of goods
  • Legal and collection costs added to outstanding loan
  • Damaged credit via reporting / listing agencies


(Q)What comes first, trips and voluntary payments or my payment to my creditors?

Always the creditors

If you feel you want a break in the islands, or to donate money, this has come out of your savings.
If you dont have savings, you dont have money to use for these purposes.

Your creditors will, if not paid, register your default with a credit agency, repossess any goods that you have used for security on your loan and / or take you to court and ask for deduction form your wages, or ask for the court to order a baliff to enter your property and sieze good to the value of their outstanding loan.

As the final matter, the creditor may apply to the court to have you declared bankrupt!



(Q)How does a Debt Management Plan work?

You regularly contribute money into a fund which is used to pay your creditors at a fair and reasonable rate, which is equitable for all creditors.
The Debt Management Plan managers pay your creditors on your behalf, and act as a point of contact in respect of your debts.


(Q) Can I stop paying toward a Debt Management Plan for a short time?

No you cant

The maintenance of your debt management plan requires transparency with your creditors. If you 'pause' your payments for whatever reason, your creditors may see your arrangement as broken, and pursue further action, which may add penalties, default charges, and other collection charges to your outstanding balance.
Again, if you make a promise to repay a loan, then this has to be paid before any voluntary contributions.



(Q) Will a Debt Manager inform the creditor about my payments?

Yes

If a creditor asks whether your account is current, the Debt Management organisation will inform your creditor if you have missed payments for any reason.
It is the obligation of the debt manager to have transparent dealings with your creditors, to maintain a level of trust between you and your creditors.



(Q) Can my Debt Management Plan be cancelled?

Yes

Most Debt Management Companies will have a clause in their contract which will enable them to cancel your debt management plan at any time, if you break the terms of the contract.

The reasons for cancellation can be;
  • Non Payment for a period or sporadic payments
  • Providing false information
  • Taking out further debt
  • Negotiating with creditors directly
  • General cancellation with notice

Note: It is not in the interests of a debt management company to cancel your debt management plan, however do not expect that they wont cancel you, as it is often better to cancel someone who does one or more of the above rather than risk damage to the reputation of the Debt Management Company