Can a Debt Management Plan Stop Bailiffs?

In this article, we will focus on answering one important question: Can a Debt Management Plan (DMP) stop bailiffs?

This question might worry many people who have a DMP and are being threatened by creditors with legal action and repossession. You are not alone. In fact, over 170,000 people visit our website each month looking for guidance on debt solutions.

We understand how stressful it can be to worry about bailiffs knocking at your door. To help you, we will provide clear and reliable information on:

•  What a Debt Management Plan is and how it works
•  The steps you can take if you are worried about bailiffs
•  How to apply for a Debt Management Plan
•  The possibility of writing off some debt
•  Whether creditors can refuse a Debt Management Plan

Our team has a deep understanding of these issues, and some of us have even faced them personally. We are here to provide you with the facts and help you understand your options.

Can a Debt Management Plan stop bailiffs?

A Debt Management Plan has the potential to stop a creditor chasing you for the money owed using bailiffs. If you do not repay your debt, the credit could seek a County Court Judgement (CCJ) requesting 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 will prevent the creditor from needing to use bailiffs.

However, if the creditor has already started enforcing the debt with bailiffs then the opportunity to agree on a Debt Management Plan 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. 

You should try to avoid the bailiffs needing to pay you a visit because these visits are charged and added to your debt. 

How can bailiff enforcement be stopped?

The most effective way of stopping bailiff enforcement is to deal with your debt before the creditor needs to use bailiffs. This may include agreeing to a Debt Management Plan, or it could be done by agreeing to another debt solution. 

If you haven’t agreed on a debt solution and the creditor is able to use bailiffs (they must have a CCJ first!), then you will receive a letter from the bailiffs. This letter is known as a Notice of Enforcement and gives you an opportunity to pay the debt or agree to a payment plan. The bailiffs charge their first fee when sending this letter and it gets added to the total owed. 

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 payment plan, the bailiff will not come out to your home and you will avoid having to pay any more bailiff fees. 

Learn effective ways to deal with bailiffs 

If you haven’t managed to agree on a payment plan with the bailiffs, you should prepare for their visit. We’ve created a guide explaining what you should do when bailiffs are coming. You can find plenty more free support and information about debt solutions on MoneyNerd. 

Is a Debt Management Plan legally binding?

A Debt Management Plan is not a legally binding debt solution. It is a type of informal debt solution, as opposed to formal debt solutions which carry legal weight. The implications of this are that you or any of the creditors can withdraw from the agreement at any time. 

You can read about the different formal and informal debt solutions here.