What if Creditors Refuse DMP? Debt Management Plan Guide

What If Creditors Refuse DMP

If you’re in debt are struggling to pay it back, then a Debt Management Plan (DMP) can be an effective way of taking care of it.

However, like most debt solutions, your creditors aren’t under any obligation to accept your DMP. Creditors refusing your DMP can definitely be a cause of stress and you may not understand what to do moving forward. 

In this post, I’ll be discussing why creditors might reject your DMP and what you can if something like that does end up happening. 

Can Creditors Reject My DMP? Why Would They Do So? 

Yes. Creditors can reject your DMP proposal as they are under no obligation to accept any debt solution that you propose. 

In most cases, the only way through which creditors will accept your debt management plan is if they feel that it would be a better-suited way of recovering money from you. 

Your creditors may accept your DMP if you are able to prove to them that you won’t be able to pay back your debt to them without it. Of course, then, your creditors are going to prefer reduced payments in the form of a DMP rather than no payments at all. 

Many creditors don’t want to go through the arduous process of pursuing legal action against you which is why they are willing to accept your DMP

However, in cases where creditors feel that accepting a DMP will lead to them recovering a lot less money from you that could otherwise be secured without a DMP, then they won’t accept it. 

Some creditors may tell you why they’ve rejected your DMP and some may even suggest changes to the terms of your DMP. If you oblige to them, then they’d accept it. 

That being said, it’s important to note that creditors are not obligated to do this and there may still be times where your DMP gets rejected without you being informed of any reason why. 

Some creditors reject your debt management plan simply because of the fact that they don’t like that you’re accepting services from a DMP provider. This is because if that debt management firm is a private one, then you’d be paying fees to them as well which would mean you have less money to pay towards your debts.

This is why when you sit down with your DMP provider, you need to draft a firm proposal that is both affordable to you as well as acceptable to your creditors. 

The payment offer that you present to your creditors will have detailed information about your financial situation such as your monthly income, monthly essential expenditure, assets, and debts. Keeping this information in mind, you will present your debt management plan to your creditors. 

Some creditors may also freeze interest and charges to your debt payments so that you get some breathing room to get your finances in order. However, it’s important to keep in mind that this isn’t a guarantee and not all creditors do this. Some may even add additional interest or simply refuse to freeze interest. 

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What Should I Do if a Creditor (or Creditors) Reject My DMP? 

If your creditors reject your DMP, then you’re going to have to start looking towards other option and debt solutions. Your debt management company with which you were attempting to get a DMP set up may be able to give you debt advice about you should do moving forward. 

It’s important to get debt advice from a professional at this stage as which debt solution will work for you will depend on many different aspects pertaining to your financial circumstances. 

You may find that a debt relief solution that could be great for you might not be as good for someone else. 

Make sure that whatever agency you get advice from is authorised and regulated by the Financial Conduct Authority (FCA). I highly advise that you seek advice from an independent charity such as National Debtline or Payplan

While you are obtaining advice and trying to determine what to do next, remember that your creditor(s) can still pursue court action against you such as getting a County Court Judgment (CCJ) against you or attempting to make you bankrupt.

Thus, it’s important that you stay in contact with them and ensure them that you’re in the process of setting up a solution in order to pay them back so they don’t pursue legal action against you. 

It can be a good idea to keep making small token payments to your creditors in order to prove your willingness to pay back your debts to them. A creditor cannot refuse a reduced payment from you. Thus, by making such a payment, you may be able to buy some time until you obtain information about what you should be doing next. 

Professional advice may suggest you pursue other debt solutions just like debt management plans (DMPs) such as an IVA or a DRO or even bankruptcy. 

It’s important that you have arrangements in place that are able to attend to your priority debts first (such as rent arrears, mortgages and utility bills) as these are essential living expenses that could affect your day-to-day life. 

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What Should I Do if a Single Creditor Refuses My DMP but the Rest Accept? 

If a single creditor rejects your payment offer, then you should ask them why it isn’t acceptable to them. 

You can try to negotiate the terms of the payment offer and see what’s acceptable to them. 

Your creditor may be able to suggest changes to your payment offer which could make it acceptable to them and as a result, you may be able to change their minds. 

However, keep in mind that they are not under any obligation to negotiate with you or inform you why your payment offer isn’t acceptable to them.

If this happens, then you may have to deal with that creditor separately. 


If your DMP offer gets rejected, you may still be able to get your creditor(s) to accept it by making adjustments to the terms or payments involved in the plan. 

However, this isn’t a guarantee and you may have to look towards other debt solutions.


Do you know your debt free date?
Do you know your
debt free date?
  • Affordable repayments with an end date in sight
  • Reduce pressure from people you owe money to
  • Stop interest and charges from soaring