In a nutshell, claims management is the process of establishing if a credit agreement is enforceable in law, and therefore whether the debt can be written off or not. There are very specific rules which set out what must be included in any credit agreement.
If an agreement was set up before April 2007 then the creditor cannot legally enforce the debt if the credit agreement doesn’t comply with those regulations. After this date, it can only enforce the debt by way of a court order.
This feature of the claims management process helps your clients to get themselves back on their feet financially. How? Because an investigation can be made to the creditors to see if the debt is legally enforceable or can be written off.
In a nutshell debt management is the process of establishing an informal agreement between your clients and their creditors to arrange to repay their debts hopefully at a reduced level of interest.
This debt management plan helps your clients to get themselves back on their feet financially, and ensures all of their debts are paid off over a fixed period of time.
As part of the debt management process, you will look at what your client can comfortably afford each month, and negotiate with their creditors on their behalf.
Your clients will pay you a single monthly payment, from which you will take your fee, and then distribute the remainder between their creditors depending on the amounts agreed.
Obviously due to the nature of debt management, the personal circumstances of each of your clients will be different. However, they will all have one thing in common. Their debt has become unaffordable and they are defaulting on their credit re-payments, but are willing and able to make some level of monthly repayment.
As a debt management plan is an informal agreement between your client and their creditor, managed by you, it means that their property is not at risk, and that they are flexible to adjust their monthly payments as their circumstances change.