Frequently Asked Questions (FAQs)​

FAQs on Debt Solution Plan or a DMP

Once you are struggling to make repayment on your credit commitments or debt liabilities and decide to opt for a debt solution plan, your debt advisor is likely to ask you for the following documents to draft you a debt solution plan:

  1. Copy of the latest credit card statements or personal loan statements that you intend to be dealt with under the debt solution. At least one statement/letter/third party letter (if the account is being managed by a debt collection company) for each account.
  2. For I/E reports, a minimum of three months’ worth of main personal bank statements must be provided.
  3. If you are on PAYE (Salary Income), please provide the last three months of salary slips, or a copy of your most recently filed self-assessment account if you are self-employed.
  4. Your partner’s income proof, if you are living in a family and your partner works
  5. One of your photo ID proofs (UK passport or UK driving licence)
Our initial setup fees will be charged as below;
  1. If your monthly disposable income is less than £125 then our initial setup fees will be three months of your disposal income (Payable in six equal monthly instalments).
  2. If your monthly disposable income is more than £125 then our initial setup fees will be £250 plus your one-month disposable income (payable in a minimum of six equal monthly instalments). We do not charge any additional management fees during the first six months of your payment plan term. Our management fees become payable from the seventh month onwards as per clause c.
  3. Unless otherwise agreed, our standard fee payable from 7th month onward will be 20% of your monthly payment or £40 whichever is higher (subject to the maximum £100 fee cap) for managing up to 08 creditors on your file, 22% of your monthly payment or £45.00 whichever is higher (subject to maximum £100 fees cap) for managing from 9 to15 creditors. From 16 to 20 creditors, our fees will be £70 or 22% of your monthly payment (subject to the maximum £100 fee cap). Above 21 Creditors our fee will be flat £100 of your monthly payment. You authorize us to recover our management fee from the client bank account prior to issuing payments to your Creditors mentioned in the ACME Pay Plan.
    – You do not pay us management fees upfront.
    – We will send payments to all your lenders from month one onwards, which will always be 50 per cent or more of your total monthly payment to us during the whole term of the plan
It’s normal to receive default notices if you’re on a debt management plan. All this means is that you’ve been paying less than the agreed minimum monthly payment to your debts. Just continue with your plan payments as normal.

Probably, if you have missed repayment on your regulated debt accounts, you may already have default registered on your credit report. There can’t be a second default notice when you join the Debt Solution Plan if you already have one on your credit report.

Your debt solution company aims to freeze interest and charges on your debt account. In most credit cards and store cards, it is generally agreed upon by creditors. However, on HMRC tax debt, it is likely that interest may get added to your tax debt as HMRC tax debt is a priority debt. If the debt is repayable under a County Court Judgement (CCJ), there is likely to be a statutory interest of 8% per year applicable to it. Please check the court judgement copy or speak to your debt advisor.

If you’re on a debt solution plan, the payment you make each month will usually be less than the minimum amount you initially agreed to when you took the debt out. A DMP could affect your credit rating, even if your creditors are happy to accept the DMP. However, once each debt is cleared or partially paid, your creditor will eventually update your credit report to reflect that the account is settled. The benefit of a debt solution plan is that it is likely that you may get a partial settlement agreed to pay off each of your debt accounts. And sometimes creditors can agree to write off substantial debt amounts. Please discuss this with your debt advisor.

A default will appear on your credit file for six years, even if you pay off the debt in full.

This means it’ll be harder to get credit cards, loans or bank accounts because the default tells the creditor there’s a greater risk of you not paying. You’ll also find other types of credit, such as mortgages, and even mobile phone contracts, may be harder to get.

Any creditor who checks your credit file at this time will see the default. They’ll take this into account if you apply for other credit.

After six years, the defaulted debt will be removed from your credit file, even if you haven’t finished paying it off.

Some creditors will refuse your application when they see the default on your credit file. Others will give you credit, but they’ll charge you a higher rate of interest. It won’t be impossible to get credit, but you may have less choice and cost you more.

Some jobs in the financial and accounting services sector and the legal sector may be affected if an account defaults. This is not common. This is a risk if your current employer regularly credit checks you, or if you’re applying for a new job that requires a credit check.

No, we do not deal with secured debts, including mortgage arrears, secured loans, and HP agreements. We only deal with unsecured debts under a suitable debt solution plan.

If you keep up with your payments to your debts and your rent or mortgage, your debt solution plan should have no direct effect on your home. Payments for your rent or mortgage are considered a priority payment. However, if you want to apply for a mortgage or a new tenancy agreement, your DMP may affect it. There are currently mortgages available if you are on a debt solution plan and want to buy your main home via a mortgage. Please consult with your debt advisor and he could direct you to a suitable mortgage advisor who deals in debt management mortgages.

Yes, We deal with County Court Judgement debts under a suitable debt plan. If you have received a court claim form, you are recommended to call our office ASAP to discuss the next step.

You must inform your debt solution company that you are struggling to pay your affordable monthly repayment and they will conduct fair financial due diligence on you to lower your monthly repayment. Generally, we conduct your financial review every 12 months to ascertain your current affordability, provide you with an updated debt balance, and see if the current debt solution plan is still suitable for you or not.

We conduct a financial review on the anniversary of your debt solution joining date and each year after it. If your circumstances have changed and you are unable to meet the obligation to afford your current disposable income (Monthly DMP Payment), our team will take the necessary action to conduct your financial review when you are in need.

There are significant benefits attached to financial review. The most important one is that it provides you with an update as to how much your overall debt level is, whether it is working for you or not, and whether it is meeting your expectations. Secondly, it provides you with an opportunity to understand if you are comfortable in repaying monthly payments, should they be decreased or increased as per your affordability. Thirdly, it is a requirement of your creditors that they demand an up-to-date financial report, including revised payment proposals, so they can assess your Debt Solution Plan and agree to repayment. The file review process is a free service as it is an obligatory service.

Your DMP won’t affect the people you live with unless you have joint financial products or joint debts with them. This could be something like a loan, a bank account or household bills that are in both names.

In the UK, there is no fixed time limit for how long a debt can be chased. However, there are some rules and guidelines that govern the process of debt collection, which are designed to protect consumers from unfair or aggressive practices by creditors.

For most types of debt, the creditor has six years from the date of the last payment or acknowledgement of the debt to take legal action to recover the debt. This means that if you have not made a payment or acknowledged the debt in any way for six years, the creditor may not be able to take legal action against you.

However, there are some exceptions to this rule. For example, there is no time limit for certain types of debt, such as council tax arrears and some types of tax debts. In addition, if the creditor has obtained a County Court Judgment (CCJ) against you, they have up to six years from the date of the judgment to take enforcement action, such as instructing bailiffs or applying for an attachment of earnings order.

It’s also worth noting that while there may be a time limit for legal action, creditors can continue to chase you for the debt indefinitely, and there is no limit on how long the debt will remain on your credit file. Therefore, it’s important to take action to address any debts you owe as soon as possible, to avoid further legal action and damage to your credit score.

CALL US for more info +44 7779648018

Acme credit consultants is a debt management company in the UK that offer financial advisory services, including debt management, credit repair, and financial planning. They assist individuals and businesses in managing their debts, improving their credit scores, and navigating financial challenges.

Blog - Debt Management Solution


An Individual Voluntary Arrangement (IVA) is a formal debt solution that creates a legally binding agreement between you and the people you owe money to. You may decide to enter an IVA if you’re struggling to repay the total amount of unsecured debt you currently have but can repay some.
Yes, an IVA will have an impact on your credit rating as it will show on your credit report for six years after it has been approved. However, it’s important to note this is the case for most debt solutions and your credit score will likely already have been affected by being in debt in the first place.

When you’re considering entering an IVA, it’s important to be aware of the following:

  • If you are a homeowner and your property has equity in it, you’ll need to try to re-mortgage, which could result in an increased interest rate.
  • Your credit rating will be affected.
  • Only the unsecured debts included in your IVA will be written off at the end of the agreement.
  • Your IVA will be recorded on a public register.

FAQs on Personal Bankruptcy

Bankruptcy is a debt solution and a form of insolvency. It’s a legal procedure mainly suited to people whose circumstances are unlikely to change, and who have little hope of paying off their debts within a reasonable time.
Bankruptcy works differently depending on where you live in the UK. If you live in England, Wales or Northern Ireland the information below outlines the bankruptcy process.
Bankruptcy fees vary depending on where you live in the UK.
In England and Wales, you pay a total of £680, made up of a £130 fee to the adjudicator and £550 to the official receiver.
In Northern Ireland, the total cost is £676 made up of a £151 court fee and £525 bankruptcy deposit. Solicitor’s fees are around £7.
When you go bankrupt almost all of your debts are written off, allowing you to make a fresh start. However, declaring yourself bankrupt is a big step that involves fees and can impact many areas of your life, such as your job or home.
In the UK, personal bankruptcy normally lasts for a year. During this time, you can’t borrow more than £500 without letting the creditor know you’re bankrupt.
You must also declare any changes in your circumstances to the official receiver.
You could be asked to sell valuable assets such as your home or car, but you’ll be able to keep the things you need for day-to-day living.
Most debts are included in bankruptcy. When you’re discharged from bankruptcy, these debts are written off.
Some debts aren’t included in a bankruptcy, these include child maintenance arrears, criminal fines and TV licence arrears.
Your debts are written off and the restrictions placed on you during your bankruptcy are usually lifted. If your bankruptcy was caused by dishonest or reckless behaviour, the official receiver can extend the bankruptcy restrictions through a bankruptcy restriction undertaking (BRU) or order (BRO).
This can last up to 15 years. The record of your bankruptcy stays on the Insolvency Register (England and Wales) or Bankruptcy Register (Northern Ireland) for a further three months after you’re discharged, or longer if you have a BRU or BRO. You may still have to make payments towards your bankruptcy, and the official receiver will decide if you have to do so.