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Secured debts i.e. where the loan is legally against an asset such as your home or a car cannot be included in a debt management plan.
Further examples of secured debts include:
- Mortgages
- Secured Loans including a Second or Third Charge
- Hire Purchase agreement on a vehicle
Other expamples of debts that cannot be included in a debt management plan include utility bills such as:
- Council Tax Bills
- Water - If you are still using the company
- Gas - If you are still using the company
- Electric - If you are still using the company
Both secured debts and utility debts are classed as priority debts and are included as part of your monthly living expenses on a debt management financial statement, therefore they are not included on a debt management plan as they are included as part of your normal expenditure. Alternatively you may have a seperate arrangement with your creditor with these debts.
All other types of debt are included in a debt management plan- see Debts Included in a Debt Management Plan. |
