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We always look for the right solution for you, not for what will increase our involvement and our fee.

Over our years of working within insolvency, we have been asked many questions by individuals who have money worries. We do not automatically push anyone towards a formal insolvency process and always keep an open mind about other, informal, options. When designing this website, we thought that it would be best to summarise those queries that have been raised most frequently. If you have a question that you would like to ask, please contact us. We will be happy to reply to you directly and keep this page updated.


What alternatives are there to an IVA, DRO or Bankruptcy ?

In some cases, simply talking to creditors in an open and honest manner can achieve levels of support that you would not have thought possible. Some in debt may also opt for a Debt Management Plan (DMP), although we at Sadlers don’t offer that service, as it does not require a licensed IP’s involvement.

What’s a DMP and why don’t Sadlers provide that service ?

Many alternative providers exist to try and negotiate a DMP with your creditors. We believe that it is rare that a DMP will offer any advantage over simply formalising the process through the Courts with an IVA or negotiating with creditors yourself. Instead, we believe that a DMP has significant disadvantages.

What are the disadvantages of a DMP ?


  • A DMP will continue until all your debt is paid back in full, including any interest and charges demanded by your creditors on an individual basis. An IVA will stop interest and charges from being added on to your debts unless you propose to pay them and are able to do so. The proposal you put to your creditors for an IVA will be for a fixed term and will provide for forgiveness of any debt that has not been repaid at the end of that period.
  • Inclusion in a DMP is voluntary on the part of a creditor and, therefore, they can start legal proceedings to collect their debt at any time. An IVA stops all further legal action against you.
  • Creditors can decide to vary the amount they want you to pay at any time during a DMP. An IVA provides certainty that what you have proposed to pay will be in full and final settlement of your debts.

Why would anyone do a DMP then ?

We struggle to think of circumstances where a DMP is a “better” option than proposing an IVA but remain open minded enough to think that there may be occasions where they might work. An IVA is registered on the Insolvency Service website, so if you are determined to keep any debt issues secret then it may not suit you. However, we believe that the disadvantages are a high price to pay for such secrecy.

So what informal option does Sadlers offer ?

We are strong believers in negotiation. If you have a, relatively, small number of creditors then we understand that occasionally the cost of implementing an IVA will occasionally outweigh the benefits. Therefore, we are often happy to contact creditors with you or on your behalf to see whether an informal repayment plan can be put in place.

Why would your involvement in any negotiation be to my advantage ?

An IP will not wish to risk their reputation by misrepresenting a situation to a creditor. Therefore, we bring professional credibility over and above you putting the same offer to a creditor. We would always advise showing creditors what the alternative financial outcomes would be for them, such as if you did propose an IVA or go Bankrupt and we can prepare detailed statements that show exactly that. It gives creditors comfort that what you are offering is the best you can currently do.

Something we’ve not covered yet ? Send us a query via our contact page and we’ll answer you and add it to this section too.