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A Debt management plan is very, very similar to a IVA. It is basically renegotiating the terms of an individual's debt with their creditors as you would with an IVA. However, the major difference is that it isn't done by an insolvency practitioner, anyone is allowed to give debt management advice or even propose a debt management plan on behalf of an individual.

The upshot of this from an individual point of view is that it is usually cheaper than entering an IVA. However, the negative would be that creditors are less likely to support it because it doesn't come from as respectable a source and also the new terms wouldn't become legally binding if they were accepted.

This means that the actual debt amount rarely changes because creditors just arenâ??t willing to commit, therefore usually the main focus of a debt management plan is restructuring the time frame in that the debt is to be repaid making it more affordable for the individual. Also, differing from an IVA, and IVA lasts for 5 years maximum whereas a debt management plan has no maximum time period, meaning it can last for years and years in some cases.