The planning and management of the financial affairs of a debtor and the receipt of money from the debtor for distribution to creditors in payment or partial payment of the debtor's obligation.

The individual who engages in the business of debt management.

An individual desiring to engage in debt management in Michigan must fill out a debt management application, pass the required competency exam, and obtain the approval of the Office of Financial and Insurance Regulation. Application forms can be found at http://www.michigan.gov/cis/1,1607,7-154-10555_13044_13209---,00.html.

You can file a complaint against a debt manager by contacting the Office of Financial and Insurance Regulation at (877) 999-6442 or by sending a letter to the Office of Financial and Insurance Regulation at 611 West Ottawa, Lansing, Michigan 48933-1070, or filing a complaint form, downloaded from http://www.michigan.gov/cis/1,1607,7-154-10555_12902_12907---,00.html.

A person must be licensed prior to engaging in any business of debt management.

You could contact a firm licensed under the Michigan Debt Management Act which would prepare a Budget Analysis Form to determine your income, obligations and what you can reasonably pay your creditors. They would contact your creditors to attempt to reduce the interest rate and your payments.

No, however, the Michigan Debt Management Act allows a licensed firm to charge a fee of up to 15% of the amount of the debt to be liquidated during the express term of the contract.

Not always. Some non-profit debt management firms charge a fee of up to 15%.

No. A licensed debt management firm shall not accept an account unless a written and thorough budget analysis indicates that the debtor can reasonable meet the requirements required by the budget analysis. If they determine that you cannot make reasonable payments to your creditors, they will not accept you as a client.

The Michigan Debt Management Act prohibits a licensed firm from charging you for preparing a budget analysis.

The licensed debt management firm is required to hold their client's money in a separate account maintained for the benefit of the licensee's Michigan clients at a financial institution whose deposits are insured by an agency of the United States government.

No. Any firm conducting debt management activities with Michigan residents must be licensed pursuant to the Michigan Debt Management Act, prior to conducting activities with Michigan residents.

The Office of Financial and Insurance Regulation licenses the Debt Management Firms. You may call our office at (877) 999-6442 to be certain the firm is licensed or check on our website at www.michigan.gov/ofir.

Debt management firm are also called Credit Counselors and often refer to their firm and advertise in the yellow pages of the telephone director as credit counseling firms.

No. But they will work with your creditors in an attempt to stop harassing telephone calls, lower your interest rates, lower your monthly payments, and perhaps stop late fees and over limit fees.