For a debt management plan to be worthwhile the debtor must prove that they are agreeing to do everything they can to pay back their debts as timely as possible. In exchange for this commitment creditors may lower or stop interest and accept a lower repayment amount.

When you start a debt management plan your DMP practitioner will circulate your repayment proposal to each of your creditors. All of your lenders will then be able to accept or reject the specifics of the DMP.

Good DMP companies will distribute this documentation to creditors quickly so that their evaluation and response can be managed in a timely manner. There are however some very sluggish debt management practitioners so it makes sense to clarify when this will occur before signing with any debt management operator.

The creditors will then have the chance to respond to the DMP proposal. There are three choices for creditors, reject the proposal, accept the terms as they are or suggest specific changes which would allow them to agree to the offer. Such adjustments might consist of a rise in the payment if they believe that such an alteration is achievable and fair.

If the proposed repayments are seen to be reasonable based on the debtor's disposable income then creditors will commonly agree to the DMP.

Creditors do have the option to use other recovery measures if they feel it is applicable. This includes legal procedures for example, seeking a County Court Judgment (CCJ). Once this is acquired other recovery measures, potentially including the use of charging orders, bankruptcy procedures or bailiffs become a possibility. In connection to DMPs, using bailiffs or bankruptcy is very rare as neither is likely to result in an increased recovery. Charging orders can be used to "secure" debts where equity exists in a property. So long as the details of a charging order are met it shouldn't result in the debtor losing their home.

Of all proposals, most reputable DMP companies find that 90% are accepted by creditors. Interest and charges are also frequently postponed in these cases.