Debt Management Plan (DMP) UK — Free Repayment Plan
An informal plan to repay your unsecured debts in full at an affordable monthly rate, usually set up free through a debt charity. Flexible and private — but creditors can still act, and there's no write-off.
Debtrupt's UK bankruptcy filing tools are designed for residents of England & Wales. If you live in Scotland, see Sequestration; in Northern Ireland, contact Debt NI — and speak to a local adviser before relying on any output here.
What is a DMP?
A Debt Management Plan (DMP) is an informal arrangement to repay your unsecured debts in full at an affordable monthly rate. It is not a legally binding insolvency solution — it is an agreed payment plan, usually set up free through a debt charity such as StepChange or National Debtline.
Because it is informal, creditors are not legally bound and can still contact you or take action, though most agree to the plan and freeze interest and charges. You can change your payments as your circumstances change, and you can leave the plan at any time.
A DMP repays your debts in full, so it can take many years if your debts are large. There is no statutory write-off — if your debts are too big to ever repay, an IVA, DRO or bankruptcy may be more appropriate.
Eligibility criteria
Indicative criteria for a DMP in England & Wales.
- Unsecured debts you cannot fully pay right now but can afford something towards monthly
- A surplus income to make a regular monthly payment
- You want to repay debts in full rather than write them off
- Debts of any size — there is no legal threshold
- Not suitable as the main route for priority debts (rent, council tax)
- Willing to maintain payments for as long as it takes
A DMP vs bankruptcy
How a DMP compares to bankruptcy, side by side.
- Informal — not on public insolvency registers
- You keep your home and your assets
- Flexible — payments change as your circumstances change
- Free to set up through a debt charity — no fees
- Repays debts in full, which some creditors and people prefer
- Repays debts in full — can take many years
- Not legally binding — creditors can still act
- No statutory write-off of the balance
- Likely to stay on your credit file for around 6 years
- No fixed end date like bankruptcy or an IVA
a DMP — your questions
What is a Debt Management Plan?
An informal plan to repay unsecured debts in full at an affordable monthly rate, usually arranged free through a debt charity. Creditors often agree to freeze interest and charges while you pay.
Is a DMP better than bankruptcy?
If you can afford to repay your debts over time and want to avoid formal insolvency, a DMP suits. If your debts are too large to ever realistically repay, bankruptcy (or a DRO or IVA) writes them off instead.
Does a DMP cost money?
No — if you set it up through a free debt charity such as StepChange or National Debtline. Avoid fee-charging DMP companies, which take a cut of your monthly payment.
Are DMPs legally binding?
No. Creditors are not legally bound and can still contact you or take action, though most respect the plan and freeze interest. For legal protection, consider an IVA or DRO instead.
How long does a DMP last?
Until your debts are repaid in full, which can take several years depending on the total amount and your monthly payment. There is no fixed end date, unlike bankruptcy or an IVA.
Not sure which fits you?
Run our free surplus calculator, then compare all four options side by side.
See if a DMP is right for you
Our free assessment takes 5 minutes, needs no paperwork, and shows your best route out of debt — private and with no judgement.