Will a DMP stop bailiffs?
In this article, we'll look at:
- Can creditors refuse a Debt Management Plan?
- Is a DMP legally binding debt solution?
- What are bailiffs?
- Can a DMP stop bailiffs?
- When DMPs may not stop bailiffs
- The Impact of Debt on Family Members
- How to deal with bailiffs
- Can I stop bailiffs with a County Court Judgement?
- DFH Financial Solutions – Debt Management Plan Providers
A Debt Management Plan is an informal debt solution that can potentially stop bailiffs if agreed upon before debt escalates to enforcement. However, the effectiveness of a DMP in stopping bailiffs largely depends on the stage of debt recovery your creditor is at and your creditor’s willingness to negotiate with your DMP provider.
A Debt Management Plan (DMP) may be the right debt solution for you if you’re struggling to keep up with repayments on multiple non-priority debts. If approved, you will make one monthly payment to your DMP provider, from which funds will then be distributed between creditors. Lower repayments are usually negotiated with creditors to make repayments more affordable and alleviate financial difficulty.
Can creditors refuse a Debt Management Plan?
Creditors are not obligated to accept a repayment offer from a DMP. They can choose to chase you for the debt in other ways, including potential court action.
However, if you can prove that you are doing your best to repay the debt without causing yourself financial hardship, and you are treating all creditors fairly, there is a greater chance of creditors accepting the DMP.
Is a DMP legally binding debt solution?
A Debt Management Plan is not a legally binding debt solution. It is a type of informal debt solution. The implications of this are that you or any of the creditors can withdraw from the agreement at any time whether you are making the agreed monthly payments or not.
What are bailiffs?
A bailiff, also known as an enforcement agent, works on behalf of creditors to collect debts. Unlike debt collectors, bailiffs have additional legal powers that allow them in some circumstances to force entry into your home and seize goods using a ‘Warrant of Control’.
However, they must operate within certain legal boundaries. For instance, they cannot take possessions that belong to someone else, only those of the person who owes the debt. They also cannot take goods that you need for your job, your studies, or your basic domestic needs.
Bailiffs must always state which court, company, or private firm they are collecting debt on behalf of and must not use aggressive tactics to collect outstanding debts.
Can a DMP stop bailiffs?
A Debt Management Plan has the potential to stop a creditor from chasing you for the money owed using bailiffs. If you do not repay your debt, the creditor could seek a County Court Judgement (CCJ) instructing you to pay. If you ignore the CCJ or cannot pay, the creditor could then ask to enforce the debt using bailiffs. Agreeing on a DMP before the debt escalates to this stage could prevent the creditor from needing to use bailiffs.
When DMPs may not stop bailiffs
If the creditor has already started enforcing the debt with bailiffs, then the opportunity to agree on a DMP may have passed. Instead, you should try to organise a payment plan directly with the bailiff company using their contact details on the letter they should have sent you before their first visit.
The Impact of Debt on Family Members
Debt can be a stressful situation not only for the person who owes the money but also for their family members. This stress can increase when bailiffs are involved.
However, bailiffs cannot take possessions that belong to someone else. If you receive a notice of enforcement for a debt that isn’t yours, it’s advisable to contact the bailiffs and provide evidence that the debt isn’t yours. If a bailiff shows up at your doorstep, verify their identity and explain that the debt belongs to someone else, not you.
How to deal with bailiffs
- If you haven’t managed to agree on a payment plan with the bailiffs, you should prepare for their visit. It is best to try and agree to a payment plan with the bailiff company at this stage.
- If you manage to agree on a DMP or another agreed monthly payment plan, the bailiffs are less likely to visit your home.
- If you are visited by a bailiff regarding your debts, you can pass on the details of DFH and advise them to speak to your debt advice providers.
- If you’re threatened with enforcement action or concerned about debt with a County Court Judgement (CCJ) against it, contact our experienced DFH team for priority debt advice.
Can I stop bailiffs with a County Court Judgement?
If a bailiff is enforcing a debt that has been escalated to the County Court, we can apply on your behalf to halt the bailiff’s actions.
We can guide you through the process of filling out an N245 form, which is an application to suspend a warrant. Typically, there is a £14 fee associated with this document.
For other types of debts, such as council tax arrears, it is advisable to negotiate a payment agreement as the preferred course of action.
DFH Financial Solutions – Debt Management Plan Providers
A Debt Management Plan can potentially stop bailiffs if it is agreed upon before the debt recovery process escalates to enforcement. However, if bailiffs are already involved, it is crucial to negotiate a payment plan directly with the bailiff company to avoid additional fees and enforcement.
Find out if you qualify for a debt management plan and start your journey to financial freedom.Get Debt Help