Debt Management Plan Case Study

Andrea, who is a Bank Manager called us regarding her partner’s debt situation.

He had been pursued by a debt collection agency for an old County Court Judgement (CCJ) in respect of an unsecured debt of £6500. Andrea’s partner had avoided monthly payments because his irregular working patterns meant that he did not know from one week to the next how much his income would be, and the collection agency had issued a summons for Sequestration (the Scottish equivalent of Bankruptcy). Because of Andrea’s employment in a bank and the fact that her partner owned a property, Sequestration could have been a disaster and was not really an option for the couple.

Family members managed to gather about £2000 to help them but the couple could not raise any more. Andrea did her best to come to an arrangement to settle the debt at this level but the collection agent was not prepared to take this amount in full and final settlement. However it was agreed that the creditor would cease the Sequestration proceedings if Andrea’s partner paid over the £2000 and then set up a Debt Management Plan with National Money for the remaining amount.

The client also had a number of smaller debts outstanding which he included in the Plan, and everything has now settled down so that they can get on with their lives without further worry.