debt management plan Tag

16 May What is a Debt Management Plan? (Part 2)

A debt management plan is designed to pay off your debt by restructuring your payments over a fixed period of time. In the 'before' times (before the revisions to the Bankruptcy Code in 2005), it was possible to attempt such a payment plan with your creditors.

A DMP (debt management plan) can take several forms. If you have the ability, it is possible to pay off your accounts in full for less than what is owed by making a lump sum payment. This lump sum payment could have been as little as 25% of the total balance. More recently, lump sum payments need to be much larger, in many cases as much as 80% of the balance due.

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