DMP going wrong

My Dad has been on a self-managed DMP successfully for five years, but the past year he's had to pay token amounts as he has been on ESA and unable to return to the work he did following illness.
The ESA has now stopped and he's really struggling to find work, partly due to illness and age.

What is the best option for the DMP - continue £1 payments or ask for debts to be written off?

All debts are with DCAs.
No longer using this account for new posts from 2013

Comments

  • fermi
    fermi Posts: 40,546
    First Anniversary Combo Breaker First Post Intrepid Forum Explorer
    Forumite
    How likely is it that his situation will improve so that he can pay off the debts in a realistic time? And how much are the debts overall?
    Free/impartial debt advice: National Debtline | StepChange Debt Charity | Find your local CAB

    IVA & fee charging DMP companies: Profits from misery, motivated ONLY by greed
  • Gemmzie
    Gemmzie Posts: 14,876 Forumite
    fermi wrote: »
    How likely is it that his situation will improve so that he can pay off the debts in a realistic time? And how much are the debts overall?

    Pretty unlikely, he's early 50s and always done manual work which he can no longer do, and lives in an area with high unemployment. It's still about £25k
    No longer using this account for new posts from 2013
  • CAB_Swansea_Bay_representative
    CAB_Swansea_Bay_representative Posts: 287 Organisation Representative
    Hi Gemmzie, thank you for your query regarding DMP
    I would suggest your father seeks debt advice regarding the options he has for dealing with his debts which could include bankruptcy or asking for a write off (although this will be difficult for this level of debt unless he has really strong medical evidence and does not own any property). You can find your local Citizens Advice Bureau at www.citizensadvice. I would suggest to prepare for the appointment by getting paperwork for each creditor with a balance and reference number and an original credit agreement if you have it, a credit report and a detailed budget and proof of current income. You can find more information about dealing with debts at www.adviceguide.org.uk
    Hope this is of assistance.
    Official CAB Representative
    I am an official representative of CAB. MSE has given permission for me to post in response to questions on the CAB Board. You can see my name on the companies with permission to post list. If you believe I’ve broken any rules please report my post to forumteam@moneysavingexpert.com as usual"
  • Gemmzie
    Gemmzie Posts: 14,876 Forumite
    He was self employed previously, and still is despite no actual income, so couldn't get any help except advice from National Debtline.

    He can't go bankrupt as my parents own their own home and have some equity available.

    Thanks though
    No longer using this account for new posts from 2013
  • CAB_Swansea_Bay_representative
    CAB_Swansea_Bay_representative Posts: 287 Organisation Representative
    Hi Gemmzie
    If your parent's own their own home and have equity it is unlikely a creditor will agree to a write off and regarding getting advice it may be that he could not get advice as he could not prove his income as self employed and you were trying to get advice under a project which requires proof of income but if he is now claiming Income Related Employment Support Allowance the situation may be different as he would be on a passported benefit so I would suggest you consider going back. Your father could consider selling the property and using the proceeds to pay the debts or make full and final settlements with the proceeds although this can affect certain benefits.
    Official CAB Representative
    I am an official representative of CAB. MSE has given permission for me to post in response to questions on the CAB Board. You can see my name on the companies with permission to post list. If you believe I’ve broken any rules please report my post to forumteam@moneysavingexpert.com as usual"
  • Gemmzie
    Gemmzie Posts: 14,876 Forumite
    He is no longer getting ESA as he was previously working, he was only entitled for 365 days.

    They would be homeless if they sold the property so I guess the creditors will keep getting £1
    No longer using this account for new posts from 2013
This discussion has been closed.
Meet your Ambassadors

Categories

  • All Categories
  • 342.5K Banking & Borrowing
  • 249.9K Reduce Debt & Boost Income
  • 449.4K Spending & Discounts
  • 234.6K Work, Benefits & Business
  • 607.1K Mortgages, Homes & Bills
  • 172.8K Life & Family
  • 247.4K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.8K Discuss & Feedback
  • 15.1K Coronavirus Support Boards