Debt Management and

IVA
Training

Version 1 – 17/06/2021
 What is a Debt Management Plan
It is not legally binding, unlike
other debt solutions, such as
A Debt Management Plan is an This is worked out through a
an Individual Voluntary Payments can also be revised if
agreement, negotiated by you or a breakdown of your monthly
Arrangement (IVA). With a DMP, your circumstances change,
third party, to lower your monthly budget and the payments are
your monthly payments are making a DMP a flexible solution.
payments to your creditors. usually paid over a longer period.
proposed based on what you
can reasonably afford.

One of the benefits of a Debt

Unlike some debt solutions, a
DMP sees you repay your debt in
full. Your creditors may also agree
to freeze interest and fees on the
debts included, but this is not
guaranteed.
Once you have figured out your
Management Plan is how quickly
If your creditors agree to the budget and decided how much
it can take effect. With a DMP, you
reduced payments offered, all you you can reasonably afford to pay
should be able to consolidate your
need to do is keep up with your towards your debt each month,
debts into one monthly payment
payments. you can start making that
and reduce the amount you have
payment straight away.
to pay almost immediately.

The money will be spread evenly

Your creditors will need time to
among your creditors, and you
A DMP gives you almost instant review your proposal, agree to it,
don’t have to wait for your
debt relief. and update your information on
creditors to agree to the plan
their systems.
before going ahead with it.
 What is an IVA (Individual Voluntary
Arrangement)
an IVA is a form of insolvency which
allows you to write off up to 75% of
Set up and managed by an Insolvency
unsecured debt with government
Practitioner (IP)
legislation, and offers an alternative
to bankruptcy
An IVA will affect your credit rating for
six years and your information will
Once you enter an IVA, creditors can
also be placed on the public Register
take no further action against you and
of Insolvencies for the duration of the
won’t be able to contact you directly.
plan but will allow you to clear your
debts.

During the course of your plan all
interest and fees associated with your
debts are frozen.
At the end of the IVA the remaining Creditors whose lending is unsecured
An IVA is open to residents of
debts are written off and you can can’t take any further action against
England, Wales and Northern Ireland.
begin your debt-free future you once the IVA is approved.

Other than reducing the amount of

An IVA remains on your credit file for
six years after it is accepted and may
have a negative effect on your credit
score for up to six years.
your pay that’s being swallowed by
debt, an IVA will usually have no
impact on your job, though it’s a good
idea to double-check your
employment contract and find out if
you do need to let your employer
know that you’re entering an IVA.
There are a few exceptions. If you
work in the police, fire service, prison
service, are a banking clerk, or are in a
position of financial responsibility,
such as an accountant or solicitor,
being in an IVA could affect your role.
Types of debts
• Credit Cards
• Bank Loans
• Payday Loans
• Store Cards
• Catalogues
• Previous Overdrafts
• Disconnected phone bills
• Previous supplier gas and electric
• Previous water bills
What debts
Catalogue
store card

Credit cards

can be Personal loans

Overdrafts

included in Gas

electricity

an IVA or water bill arrears

Council tax arrears

DMP? Finance no longer in your possession

Payday loans

Other outstanding unsecured debts

 Hire Purchase

Finance still in place

HMRC

What debts Parking fines

can’t be
Student loans

CCJS

included in Bailiffs

Mortgages

an IVA or Secured Loans

Current Utility Bills

DMP? Snap on tools

 • £650pm Income - Working or benefits

• £1200+ debt level with 2 creditors for DM

Criteria • £6000+ Debt level with 2 creditors for IVA

• Disposable income of £100pm

• No secured debts

• No finance still in possession of the product

 Debt and IVA pitch

Intro:

Good Morning/Afternoon am I Speaking to……………………My name is …… and I’m calling from prime financial services how are you today?

Fantastic it’s just a quick call today, in relation to a loan you’ve tried to take out in the last 18 months that unfortunately was rejected due to poor credit, now we deal with a variety of debt solutions here, I’m
here to see what options are available for you today.

Body:

Great, just to make you aware, we don’t charge any fees for our services and at this point it’s more of an informative chat to gain a better understanding of your financial situation and we can look at what
options are out there for you.

Do you have any………..

1. Unsecured loans
2. Pay day loans
3. Door step loans (provident shopacheck etc)
4. Credit cards
5. Overdrafts
6. Catalogues
7. Store cards
8. Council tax (must be from previous years, on IVA only!)
9. Disconnected utility bills (phones, gas Electric)

Close:

Okay based upon the information you have just provided, there are a variety of options available for you, what I’d like to do next is get you through to one of our senior advisors who will look into this for you.
(List the debts, current balance and payments, we need to record this on the system)

Pass over to the adviser and give.

∙ List of debt, amounts and any current payments being made

∙ Full Name
∙ D.O.B
∙ Telephone Number
∙ Door Number
∙ Post Code
∙ Income Level
 Quiz
1. I still have my car that is on finance can I include that?

2. What does DMP stand for?

3. What does IVA stand for?

4. How long will an IVA stay on credit file for?

5. Can an IVA effect my job?

6. What 3 debts can not be included in a plan?

7. What 3 debts can be included in a plan?

8. How much debt can a IVA write off?

9. Can you help with Bailiff action?

10. Will my debts just clear after 6 years if I ignore them?

 Quiz
11. I still have my car that is on finance can I include that?

12. What does DMP stand for?

13. What does IVA stand for?

14. How long will an IVA stay on credit file for?

15. What is the minimum debt level for an IVA?

16. What is the minimum debt level for a DMP?

17. What is the minimum income?

18. I have secured loans attached to my house, can I include this in a plan?

Name …………………………….. Date……………………..