You need a debt management plan or DMPin order to survive debt, especially if you're handling a huge company and wish to survive a bankruptcy and the like. A DMP is essentially a formal agreement between a creditor and a debtor that deals with the terms of an outstanding debt. If the borrower has money to spare, he could hire a debt management professional to streamline the process. However, some debt managers exist to work on a case-by-case basis and by commission in order to get paid by the borrower with potential money he could scrape up from managing debt down the line. Anyway, a creditor is likely more open to deal with a debt management professional than the creditor when it comes to securing the payment and avoiding a debt default that's a lose-lose for everyone concerned.
Overview and Regulations
* A DMP refers to a process for personal process that addresses high consumer debt. Professionals could be involved in order to make sure that the debtor doesn't default on his borrowed money and debt (which isn't in the best interest of his creditor). The debtor will have to stick to a plan that allows him to gradually but surely pay all outstanding, unsecured debts over time in order to assist the debtor in regaining control of these finances.
* The DMP is a good approach as far as the borrower is concerned because it secures a lower overall interest rate when all is said and done. However, its repayment terms will come longer. There might be an overall reduction of the debt itself depending on the agreed upon terms between borrower and lender. Consumer debt plans are typically negotiated by a third part on behalf of the borrower. Different regulations are involved in the U.S. and the U.K. when it comes to the debt management process.
* The Federal Trade Commission deals with the process in the U.S. while the U.K. has the Financial Conduct Authority to take care of business. While it might seem not in the best interests of the debtor to hire someone while he's still in debt to deal with his debt since that will entail even more debt (in fees), it's a worthwhile expenditure that actually reduces his debt and potential payment significantly.