A DMP is not a legally binding agreement. This means you can cancel it if you wish. There are a number of reasons why you want to terminate, including: If you are in a debt contract, you do not have access to credit and therefore you must learn to live from what you earn. The reason most people go into debt is that they spend more than they earn. Credit is not your money — it is money that they borrowed and they have to pay back. Not spending more than you deserve is the basis of financial discipline that can lead to wealth creation. If you apply financial discipline and enter into your debt contract, you can apply the same discipline to create wealth. If you have a complaint about a not-for-profit credit advisor or debt settlement company or an agreement you signed with a credit intermediary, you can file a complaint with the Department of Government and Consumer Services. The department has a claim form that you fill out and by email. Bankruptcy is the formal process that they are declared unable to pay your debts. If you entered the DMP agreement over the phone or over the Internet, it is considered a single sale that gives you additional rights. You have a 30-day cooling-off period. During this period, you can cancel your DMP for any reason and get a refund of the charges.
All unsecured creditors have the right to vote. A secured creditor can only vote for an unsecured portion of its debt. For example, if you have a guaranteed loan for a car for which you owe $24,500 and your car is valued at $19,000, the secured creditor has the right to vote on the unsecured portion of that debt. In this example, it is $5,500. This is due to the fact that the value of your car is less than the amount you owe and that this part or lower amount is considered an unsecured debt. Debt settlement services are sometimes advertised as “debt settlement,” “debt management,” “debt agreement,” “deleveraging” or “debt consolidation.” This allows you to change or terminate your debt contract if you are unable to make payments. However, the consequences show that it is important to ensure that your agreement is affordable before you commit to doing so.