Debt Management2019-11-11T14:20:59+00:00

Debt Management

Debt management plans for self-employed people

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Debt Management

A debt management plan is an informal agreement between you and your creditors. Under the terms of a debt management plan, you will repay all of your debt over an extended period of time. You will usually make a single monthly payment based on your affordability, that is split between all your creditors on a pro-rata basis. You can contact your creditors directly to arrange this; you do not need to instruct a company to help.

A debt management plan can help if you have a small amount of personal debt and can’t afford the agreed monthly payments. Debt Management Plans are not always appropriate but in some cases they could help reduce pressure temporarily.

For more information about our Business Finance solutions contact us today.

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Problems with Debt Management

Debt Management Plans might not be the best debt solution for you if you are Self-Employed or a Sole Trader. You should make sure you have considered all other debt solutions including a Self-Employed IVA, before proceeding with a debt management plan. Some of the main problems and disadvantages with debt management plans include:

  • Business debts can’t usually be included; Tax, Business Rates, Trade Suppliers etc

  • Unlikely to stop legal action, CCJ’s or Bailiffs

  • None of your debt will be written-off, you must repay your debts in full

  • Your Debt Management Plan may continue for many years

  • The arrangement is not Legally Binding, creditors can move the goal posts at any time

Emma Williamson
Emma WilliamsonDirector
Since joining Anderson Brookes in 2010, Emma has held almost every role within the business. She is currently responsible for the firms internal HR functions and Accounts.

Contact Emma on 01204 255 051 or, email at the above address

Alternatives to Debt Management

If you are Self-Employed or a Sole Trader, it is unlikely that a Debt Management Plan will solve your debt problems. In most cases, if you owe HMRC, Business Rates or Trade Suppliers a debt management plan will not be accepted. Please read more about Self-Employed IVA’s.

Questions about Debt Management

What are the alternatives to Debt Management?2018-02-16T16:10:32+00:00

One of the most common alternatives to a debt management plan if you are self-employed is a Self-Employed IVA. You should read more about these before deciding to proceed with a debt management plan.

I have Business Debts, will I be able to get a Debt Management Plan?2018-01-23T11:29:29+00:00

In theory, there is nothing to stop someone with business debts setting up a debt management plan. In practice, a debt management plan is unlikely to be agreed by your business creditors. For example, HMRC will not usually accept payments through an informal debt management plan. This is normally the same with trade creditors, Business rates, VAT etc. If you only have ‘consumer’ debt such as credit cards, loans and personal overdrafts a debt management plan could be considered.

What is a Debt Management Company?2018-01-23T11:18:39+00:00

A debt management company is a business that will help arrange a debt management plan with your creditors, on your behalf. There are many fee charging debt management companies around however, you must remember that they will take their fees directly out of the payments you make each month. This can mean that your debt management plan lasts for a long time.

Anderson Brookes does not administer or manage debts on behalf of clients. If we feel that a debt management plan is the most suitable debt solution for you, we will put you in touch with a non fee-charging organisation.

Can I arrange a Debt Management Plan myself?2018-01-23T11:04:54+00:00

Yes. Anyone can arrange a debt management plan directly with their creditors.

Is a Debt Management Plan a loan?2018-01-23T11:03:07+00:00

No. If you enter into a Debt Management Plan you are simply arranging to pay your existing debts back at a rate you can afford. If you choose to instruct a debt management company to help, they will not ‘buy’ the debts, they will collect a monthly payment from you and pay out a portion of this to each creditor. The debt remains with the original creditor.

Will a Debt Management Plan stop CCJ’s or Bailiffs?2018-01-23T11:32:01+00:00

No. A debt management plan is an informal debt solution that is not legally binding on creditors. This means the creditor can still enforce CCJ’s and instruct bailiffs to remove assets irrespective of you being in a debt management plan.

Will a Debt Management Plan affect my credit rating?2018-01-23T11:24:57+00:00

The debt management plan itself will not show on your credit file however, this does not mean you credit record will not be damaged. Unless you make the full, contractual payments to all your lenders, adverse information will be recorded on your credit file. Under the terms of your debt management plan, it is likely you will be paying less than the contractual payment to each lender; the reason for entering an arrangement is that you were unable to afford those payments. In that case, your credit file is very likely to be damaged.

How long will the Debt Management Plan last for?2018-01-23T11:08:03+00:00

This depends on several factors;

  • the monthly payment you can afford to make
  • the amount of debt you have
  • whether any fees are deducted from the monthly payments you make

    You must remember that under a debt management plan, none of your debt will be written-off. This can mean that the plan continues for many years.

    I already have a CCJ is it too late to take advice?2018-02-18T19:23:32+00:00

    No. Call us straight away on 0800 1804 933, in most cases we can prevent CCJ’s from being enforced by bailiffs if we are instructed early enough.

    Should I make myself bankrupt?2018-01-23T16:51:06+00:00

    It may be that declaring bankruptcy is the right solution to your debt problems however, you should take professional advice before proceeding with this. There are lots of other personal debt solutions available and it is vital that you have considered all these before going bankrupt.

    Once we understand your financial circumstances, we will explain all the advantages, disadvantages and implications of bankruptcy before providing you with a recommendation. At that time, if you still feel bankruptcy is the best option you will understand the full process and know exactly what to expect.

    For more information about our debt solutions contact us today.

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    WHAT OUR CLIENTS SAY


    “The service I received from Anderson Brookes was excellent. I’d already made the decision to cease trading but I didn’t know how to deal with my legal responsibilities as a Director. I went through the process of Creditors Voluntary Liquidation (CVL). Anderson Brookes helped me through every stage”.

    Mr L C. Managing Director of #### Cash & Carry Ltd.


    “I write to you having recently used your company to arrange an IVA. Throughout this process I was stressed to the point of being unwell and encountered many obstacles, all of which Khalid walked me through. I am now beginning to start the process of getting myself on the right track, and this is largely thanks to Khalid’s pragmatism.”.

    Mr L. A., sole trader


    “Neil helped me through the process of Liquidating my company. Although closing-down the company was quite stressful, it was surprisingly quick and Neil made sure I knew what to expect at each stage. I have recommended other business owners to Anderson Brookes and always received great feedback”.

    JP, Director of XXX Ale House Limited


    “Why my company ran into cash-flow difficulties, I was introduced to Neil at Anderson Brookes. We discussed lots of different options but I decided to place the company into Liquidation. The problems are now behind me and I’ve been able to set up a brand new, debt-free company”.

    Miss G H - Director of #### In Exmouth Ltd


    “Anderson Brookes helped me arrange a Business IVA. I was a sole trader and my plumbing business had run into financial problems. I was able to repay my debts through a voluntary arrangement over 5-years. I’m pleased to say; the business has been trading very successfully now for the last few years”.

    Mr A C - trading as ‘### Plumbing & Heating’


    “Just thought I would let you know that business is going extremely well I have no credit commitments, new car, new van and 2 good holidays a year and I really do owe all of that to you. I really appreciate your help in turning my life around. I would hate to think about where I would be if I hadn’t met you”.

    Mr T. C. - Self-Employed Engineer


    “I was introduced to Neil at Anderson Brookes as I needed help with a financial problem. It turned out that I just needed to have all the options explained. Within a month of taking advice, the problem was behind me. I’m happy to recommend Neil and Anderson Brookes to anyone that needs advice on debt”.

    Miss L.H. - Informal Debt Settlement


    “You were very helpful and professional.  It was a very stressful time, thanks to your work and management, I was able to relax again.”

    Mrs S. T. - Sole Trader

    CONTACT OUR TEAM FOR FREE PROFESSIONAL ADVICE

    Our professional and friendly team are on hand to provide you with the help and guidance you need at this difficult time.

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    ADVICE YOU CAN TRUST

    ANDERSON BROOKES GROUP

    Anderson Brookes Ltd is a limited company registered in England and Wales; the company registration number is 4213701. Anderson Brookes Ltd is Authorised and Regulated by the Financial Conduct Authority (FCA); our FCA registration number is 669796. You can confirm our details on the FCA website www.fca.org.uk. Data Protection: our ICO registration reference number is Z5595675. Anderson Brookes Ltd does not administer ‘debt relief orders’, ‘debt management plans’ or handle ‘client money’. In the event we believe a debt management plan or debt relief order may be the most suitable debt solution we will provide you with the contact details of a reputable, non-fee charging organisation. The Money Advice Service are an independent service, set up by government to help people make the most of their money, they give free, unbiased money advice to everyone across the UK – online, over the phone and face to face. You can visit Money Advice Service at www.moneyadviceservice.org.uk

    Anderson Brookes Insolvency Practitioners Ltd is a limited company registered in England and Wales; the company registration number is 10324159.  Laura J Prescott and Brendan P Hogan are licensed to act as Insolvency Practitioners in the UK by the Insolvency Practitioners Association. Licence Numbers 15010 and 13030 respectively. Our VAT Registration Number is 249 5912 70. Data Protection: our ICO registration reference number is ZA201949. Anderson Brookes Financial Services Ltd is a limited company registered in England and Wales; the company registration number is 08660228.  Data Protection: our ICO registration reference number is ZA123471. All group companies are registered at 4th Floor, Churchgate House, Bolton BL1 1HL

    Anderson Brookes Insolvency Practitioners Ltd operate a complaints procedure. In the first instance, please call 01204 255 051 or email info@andersonbrookes.co.uk to request a copy of the complaints process. If we are unable to deal with your complaint to your satisfaction, your complaint should be made to the Insolvency Complaints Gateway by visiting their website https://www.gov.uk/complain-about-insolvency-practitioner and completing and submitting their online form. Alternatively, you can print the form from their website and send it by post to The Insolvency Service, IP Complaints, 3rd Floor, 1 City Walk, Leeds, LS11 9DA or contact them by telephone on 0300 678 0015 (Monday to Friday 9am – 5pm).

    Some of the services provided by Anderson Brookes are not regulated by the Financial Conduct Authority. Some of the debt solutions we provide advice on are only available in England and Wales; Anderson Brookes does not provide services outside England and Wales. Anderson Brookes is a commercial, profit seeking organisation; depending on the services provided, fees may be payable. Any fees applicable will be confirmed to you in writing before any chargeable work is completed. Anderson Brookes operates a complaints policy; if you are not happy with the way we have  dealt with you or your case, please ask us for a copy of the policy.