Services offered by 'The Debt Doctor'.

Formal Creditors Proposal (FCP)

Formal Creditors Proposal(s) are a formalised creditors agreement (compromise agreement) which is lodged with and registered with the High Court Of New Zealand.
The FCP has a formal procedure, which requires several legal processes to be followed, including a formal meeting of creditors where a 'vote' is passed as to whether to accept a proposal.

This process is of use where one or more creditors (with a small portion of debt) seem to be 'holding the other creditors to ransom' by refusing to accept what would be considered fair and equitable terms under a SIO or bankruptcy situation.
The FCP allows all creditors the ability to decide as to whether a proposal is reasonable, (in light of a clients situation).

In the case of a pending bankruptcy a person may lose the ability to be a director of a company that employs staff, resulting in additional costs in order to save that company (and the employees) from the 'house of cards' situation, where one action ends up resulting in a flow down effect on the employees and suppliers of that company.
A person who is insolvent may still operate a company (as at 2011), where a bankrupt may not.


Debt Management Plan (DMP)

A DMP is effectively the same as a FCP, in the nature of the proposals to creditors, however it allows more scope for changes in the plans that are offered.
It is often discretionary as to how much the charges are in respect of a debt management plan, which can be as low as $1 per month. (under extreme circumstances)

We prefer to put a Debt Management Plan in place for our clients rather than a FCP, as there are a number of costs associated with an FCP which are not associated with a Debt Management Plan.
Costs such as solicitors fees, High Court registration fees, document serving fees etc are not required with a DMP.

A debt management plan is preferred in cases where the client may be an employee of a government office, such as prisons / police etc, (or any other position which may be associated with coercion for gain).
The DMP also serves to assist people that are bordering on insolvency, and do not ethically wish to pursue options such as the No Asset Procedure or SIO.

Where a DMP is stalled due to reluctance of one or more creditors, a FCP may be seen as one of the last options


Debt Settlement

Debt Settlement is the negotiation of a settlement figure at a discounted rate, in order to clear some or all of the debt that a client has.

Where a person embarks on an application for consolidation of debt, debt settlement can mean that a debt is reduced dramatically by the repayment of the loan immediately.