Ask a CCCS counsellor a question

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  • louloujs
    louloujs Posts: 285 Forumite
    Hi, I have 3 questions that I would love answers to

    1. I've been in touch with CCCS and I have been sent letters to send to creditors on my behalf as I had no surplus during the first interview. However, I have managed to save/cut back and now have a £150 surplus on a debt of £58k. How does a self-admin dmp using cccs letters compare with cccs doing it on my behalf? Basically, does cccs have more power to negotiate than me?

    2. One of my creditors is HBOS with a card and OD, however, we have an arrangement to pay arrears on our HBOS mortage in place. Is this arrangement in jeopardy with a dmp?

    3. I have a small £200 od facility with Lloyds that I use for emergencies. If I dmp quoting HBOS, will this affect my Lloyds account facility and cheque book availability in the future?

    4. My husband may also have to dmp in the future. Since we have a joint mortgage with HBOS, again, will this affect our arrears arrangement with them. Obviously we intend to keep those repayments going.

    Thanks for any advice you can give.
    Lou
  • CCCS_Sarah
    CCCS_Sarah Posts: 1,555 Organisation Representative
    scattytracy wrote: »
    Good morning

    I have a big question, we have been on a DMP with payplan for 18 months now and it is failing miserably added to the fact I have just lost my job, my house is in negative equity and is getting repossessed next month. While the lady at payplan was lovely she didn't seem to be able to offer any advice she told me to fight for the house even though the mortgage payments are far to high, she seemed to be more concerned with getting there partner company to offer us cheaper insurance when I have allready got the cheapest possible on everything! We are in a minus surplus at the moment with the mortgage but if we rented and didn't have any debts we would be able to survive, should we go bankrupt?

    thanks

    Tracy

    Hi Tracey,

    It would be really hard to say via the forums as I don’t have your full details.

    There are a couple of different factors for you to take into account when you are considering bankruptcy.

    The first thing would be to let the dust settle and take a step back to look at the whole picture to consider the following points.
    • What would your budget look like once you’re in rented accommodation i.e. how much surplus is there to offer the creditors?
    • How long would it take you to clear the debts with this surplus – including any shortfall from the house?
    • What line of work are you looking to return to?
    • What income would you be on then?

    From the information you have given, it does seem that you are struggling with your DMP so I would advise you call Payplan and ask for a review. This may mean, if there is not enough surplus to pay you creditors, they may close your plan. If they do this, you would just need to make token payments until your situation improves.

    Let me know how you get on with your review and give me a shout if you need any help with anything.
    I am a Debt Counsellor that works for the CCCS and have specific permission from Martin, to post on these boards to try and help those in debt. Read more information on the CCCS and what it does in the Debt Problems: What to do and where to get help article.

    CCCS is a registered charity, and there is no charge whatsoever for any of the services we provide to our clients. We take great pride in offering first class help and advice, but we only offer this where we have been able to fully explore and understand your circumstances with you. We want to help you understand these choices and their possible implications but not make them for you.
  • CCCS_Sarah
    CCCS_Sarah Posts: 1,555 Organisation Representative
    louloujs wrote: »
    Hi, I have 3 questions that I would love answers to

    1. I've been in touch with CCCS and I have been sent letters to send to creditors on my behalf as I had no surplus during the first interview. However, I have managed to save/cut back and now have a £150 surplus on a debt of £58k. How does a self-admin dmp using cccs letters compare with cccs doing it on my behalf? Basically, does cccs have more power to negotiate than me?

    2. One of my creditors is HBOS with a card and OD, however, we have an arrangement to pay arrears on our HBOS mortage in place. Is this arrangement in jeopardy with a dmp?

    3. I have a small £200 od facility with Lloyds that I use for emergencies. If I dmp quoting HBOS, will this affect my Lloyds account facility and cheque book availability in the future?

    4. My husband may also have to dmp in the future. Since we have a joint mortgage with HBOS, again, will this affect our arrears arrangement with them. Obviously we intend to keep those repayments going.

    Thanks for any advice you can give.

    Hello,
    • There is no difference really. With a dmp it would just mean that you would make one payment to ourselves and we would distribute this on a pro rata basis on your behalf.
    If you were on a self-admin dmp, we would give you all the copies of the budget and everything you need to agree this directly with your creditors. We would still be there for all the help and support if you had any questions.
    • Your Mortgage will always be treated as a priority in your budget and you would continue to pay this as normal with extra for the arrears.
    • If you had an OD with Lloyds, you would need to open a basic bank account with another bank where you have no debts. If you use this for certain items ie house repairs- these items need to be built into the budget rather than using credit to support them.
    • Again your mortgage is a separate account and is treated as a priority. If your husband also has debts, you may wish to look at a joint budget now. As from past experience by taking both your debts together this could reduce the term you are paying the debts over. Currently paying £150pcm towards £58,000 a DMP would not be your best option as it would take around 32 years to repay if there were no changes to your circumstances.

    If you have anything else let me know
    I am a Debt Counsellor that works for the CCCS and have specific permission from Martin, to post on these boards to try and help those in debt. Read more information on the CCCS and what it does in the Debt Problems: What to do and where to get help article.

    CCCS is a registered charity, and there is no charge whatsoever for any of the services we provide to our clients. We take great pride in offering first class help and advice, but we only offer this where we have been able to fully explore and understand your circumstances with you. We want to help you understand these choices and their possible implications but not make them for you.
  • louloujs
    louloujs Posts: 285 Forumite
    Sarah, thank you so much for this information.

    Think I will go for the self-admin dmp as circumstances are likely to change. We have a lot of property with equity, although the credit crunch has scuppered our refinancing to release some of it to clear debts so far (hence the difficulties), we are likely to be able to release some equity from a sale in about 3/4 months and I will then be able to clear a reasonable chunk of debt.

    Thank you again, I'll get those letters off today.
    Lou
  • louloujs
    louloujs Posts: 285 Forumite
    Sorry, Sarah, there was one more thing - if I don't use the overdraft facility at Lloyds, or ask them to remove it - will this mean I can stay with them? How will they find out about the dmp? Just don't want them to take money from the account to clear potential HBOS related debts.
    Lou
  • CCCS_Sarah
    CCCS_Sarah Posts: 1,555 Organisation Representative
    louloujs wrote: »
    Sarah, thank you so much for this information.

    Think I will go for the self-admin dmp as circumstances are likely to change. We have a lot of property with equity, although the credit crunch has scuppered our refinancing to release some of it to clear debts so far (hence the difficulties), we are likely to be able to release some equity from a sale in about 3/4 months and I will then be able to clear a reasonable chunk of debt.

    Thank you again, I'll get those letters off today.

    That’s great news!

    Don’t mention the sale of the property to your creditors just yet and come back for a second appointment closer to the time. There will a couple of different options you could use depending on your circumstances i.e. full and final settlement or lump sum IVA

    Fingers crossed for you!
    I am a Debt Counsellor that works for the CCCS and have specific permission from Martin, to post on these boards to try and help those in debt. Read more information on the CCCS and what it does in the Debt Problems: What to do and where to get help article.

    CCCS is a registered charity, and there is no charge whatsoever for any of the services we provide to our clients. We take great pride in offering first class help and advice, but we only offer this where we have been able to fully explore and understand your circumstances with you. We want to help you understand these choices and their possible implications but not make them for you.
  • CCCS_Sarah
    CCCS_Sarah Posts: 1,555 Organisation Representative
    louloujs wrote: »
    Sorry, Sarah, there was one more thing - if I don't use the overdraft facility at Lloyds, or ask them to remove it - will this mean I can stay with them? How will they find out about the dmp? Just don't want them to take money from the account to clear potential HBOS related debts.



    If you pay the £200 it would mean that Lloyds have received £200 more than the other creditors, and this would be classed as preferential treatment.

    If this is not included in your budget, call for another appointment and we will add this in your budget and work out the new pro rata figures for you.
    I am a Debt Counsellor that works for the CCCS and have specific permission from Martin, to post on these boards to try and help those in debt. Read more information on the CCCS and what it does in the Debt Problems: What to do and where to get help article.

    CCCS is a registered charity, and there is no charge whatsoever for any of the services we provide to our clients. We take great pride in offering first class help and advice, but we only offer this where we have been able to fully explore and understand your circumstances with you. We want to help you understand these choices and their possible implications but not make them for you.
  • louloujs
    louloujs Posts: 285 Forumite
    I'm not using the facility at the moment so there is nothing to repay or to include in figures. I'll make sure I don't use it or just remove it from the account, that's probably the safest thing.

    Thanks again
    Lou
  • CCCS_Sarah
    CCCS_Sarah Posts: 1,555 Organisation Representative
    louloujs wrote: »
    I'm not using the facility at the moment so there is nothing to repay or to include in figures. I'll make sure I don't use it or just remove it from the account, that's probably the safest thing.

    Thanks again

    You will be fine to just close it in that case.

    Sarah
    I am a Debt Counsellor that works for the CCCS and have specific permission from Martin, to post on these boards to try and help those in debt. Read more information on the CCCS and what it does in the Debt Problems: What to do and where to get help article.

    CCCS is a registered charity, and there is no charge whatsoever for any of the services we provide to our clients. We take great pride in offering first class help and advice, but we only offer this where we have been able to fully explore and understand your circumstances with you. We want to help you understand these choices and their possible implications but not make them for you.
  • andreweduk
    andreweduk Posts: 133 Forumite
    CCCS_Sarah wrote: »
    Hi Andrew,

    Have you completed the full process? And been given advice?

    If you have let me know and I will PM you the Debt Remedy Support teams direct number.

    Sarah

    Filled in the Debt Remedy online and have had my welcome letter and letter to copy and send to creditors, not returned the things to CCCS yet as am waiting for a statement to come through :)
    Twitter: @haddockman83
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