122. Debt management schemes.

One option for a person falling into debt is to enter into a debt management arrangement with creditors under which it is agreed that the debtor is to pay reduced monthly payments without incurring extra charges or fees. Such an arrangement is intended to allow the debtor time to become financially stable and eventually be in a position to pay off the debts in full. At present, such arrangements are non-statutory, although providers of debt management advice are required to be authorised and regulated by the Financial Conduct Authority1.

The Tribunals, Courts and Enforcement Act 2007 introduced a statutory debt