Debt Management Plan – Can creditors pursue legal action ?

Q: Can creditors pursue legal action whilst the Debt Management Plan is in place?

Answer: Creditors can indeed pursue legal action if you don’t keep up with the terms of your payment plan or they may simply change their mind about participating. But if you have a debt management agency administering the plan they will ensure that you adhere to the plan.

If you don’t have an agency acting for you, you can still prove that you are making payments, by showing your payment history.

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