Job and a Debt Management Plan
One of the advantages of a Debt Management Plan (DMP) is that it is a private agreement between you and your creditors. The fact that you are in Plan should not affect your job in any way. No-one will be told that you have started your Plan and there is no public record of it ever existing. This means that your employer will not find out unless you tell them.
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Will anyone at my Job find out about my Debt Management Plan?
Your employer will not be told by anyone that you have started a Debt Management Plan. Because it is an informal solution there is no official register of people who are using them. It is therefore virtually impossible for your employer to find out unless you tell them.
Once you start the plan your job should not be affected in any way. You remain in control of your Plan payments which come out of your bank account. Your payment is not taken directly from your wages and is nothing to do with your employer.
In fact your Job performance should improve. This is because the stress of trying to pay your debts should reduce because they are now being controlled within your Plan.
Do I have to tell my employer that I have started a Debt Management Plan?
Normally you will not be required to tell your employer if you start a Debt Management Plan. Because it is an informal payment agreement you are not classed as formally insolvent. Given this you should not have to tell your employer even if your contract states that you must inform them if you become insolvent.
DM4U Tip: If you start a Plan your credit rating will be negatively affected. This might cause you a problem if your job requires you to keep a clean credit record and your employer carries out regular credit checks against you. If you have this kind of job you should consider getting agreement from your employer before starting a Debt Management Plan.
Can I start a Debt Management Plan if I have a Job as a Company Director?
There is no legal reason why you cannot continue your job as a company director if you start a Debt Management Plan. You are not formally insolvent. As such you do not need to make your situation known to any fellow directors if your contract requires you to tell them if your become insolvent.
DM4U Tip: As a Company Director you may owe money to HMRC in the form of tax or VAT arrears. One of the downsides of a Debt Management Plan is that you cannot normally include these debts in the agreement. If you have these HMRC debts then you will possibly be better off considering an alternative solution.
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