A Debt Management Plan May Avoid Court Action

Leicestershire, United Kingdom (PressExposure) November 06, 2009 -- Did you know any lender may apply to the county court to recover outstanding debts? Of course there is a solution to avoid this action; by entering a Debt Management plan.

The Debt Support Company are specialists that provide debt advice and support and have programs dedicated to helping those that are finding their debts are spiraling out of control.

Banks, Finance Companies or Credit Card lenders owed arrears by a consumer have the option to seek judgment in the County Court in an effort to recover their money. In the case where it is genuine hardship and not just a consumer trying to avoid payment the court may order that any payment agreed is based on the consumers' ability to repay.

There are certain priority debts which the court normally recognizes and must be paid before unsecured creditors, in the main these are Mortgage and rent payments,Utiity Bills, Council Tax and Magistrates Fines. The court will also allow that an amount will be required to lead a normal and reasonable family life so an amount for housekeeping, travel and clothing will be taken into account.

The amount of money remaining after these deductions from all income is the amount available for all remaining creditors.

A Debt Management provided plan by The Debt Support Company follows the same format. It involves compiling a detailed Income and Expenditure statement based on information gained from the consumer and this statement will be forwarded to each creditor together with an offer of payment based on a share of the consumers' surplus income.

Most reasonable creditors will accept the information provided by the Debt Management Plan and will take a sympathetic view to the consumers current financial situation. They may freeze or reduce interest to assist the consumer so that the outstanding debt does not continue to increase.

Mike Hendry ,Operations Director, The Debt Support Company said " A Debt Management Plan is an informal arrangement between the consumer and the creditor so it is essential that the creditor can trust the information we provide to them and that we are seen to strike a fair balance between the needs of our client and the creditor."

The Debt Support Company is a well established independent ethical Debt Management Company who offers free advice to consumers seeking help with debts they can no longer manage on their own.

About The Debt Support Company

The Debt Support Company, helping to provide Debt Management [http://www.thedebtsupportcompany.co.uk]

Press Release Source: http://PressExposure.com/PR/The_Debt_Support_Company.html

Press Release Submitted On: November 06, 2009 at 3:59 am
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