Statutory Debt Repayment Plan – What is a SDRP?
A Statutory Debt Repayment Plan, also known as a SDRP, is a plan that can help you repay your debt. Debtors can choose to make a single payment to their debt advisor, who will distribute that payment to the creditors in the plan. The repayment plan usually lasts 7 years but can be extended to 10 years in certain circumstances.
Statutory Debt Repayment Plans are an important new way for people to tackle their debt. They are designed to protect consumers from a number of potential risks. For example, they can protect debtors from debt collection activities, enforcement action, fees, and even repossession. Another key advantage is that consumers will be able to retain control of their finances.
The new government scheme is also intended to protect consumers from debt collection. The plan will allow people to repay their debts over a period of time while protecting them from legal action. The plan is designed to cover a variety of debts, including consumer debts, but it can also cover mortgage and rent arrears. A regulated debt adviser can help you choose the right plan for your financial situation. However, you should not use the plan if you already have a Debt Relief Order or bankruptcy.
There are three stages of a Statutory Debt Repayment Plan. The first stage involves seeking debt advice from a debt advice service. The second stage is the implementation of the plan.