Debt Management Plan (DMP)

A debt repayment agreement between a debtor and a creditor, made with the assistance of an accredited credit counsellor, allows for the repayment, in full, of specified debts over a period of time, usually up to 5 years. Not all debts are included in a debt management plan and creditors are not legally bound to the agreement.

A consumer proposal is a form of debt management program, and is a debt reduction or debt settlement agreement made between a debtor and his unsecured creditors with the assistance of a consumer proposal administrator.