DMP + Settlement Figure

CBI

Been on a DMP with CCCS now for about 4 months and I'm in a position where I could start making settlement offers.

Say half my creditors accept the offer and half don't what happens? Can I do the deal with the half that will accept?

I'd have to pay back the money to a friend who's helping me out by lending me the cash to get settlement figures, but how would the the creditors that won't accept the settlement suddenly take to a percentage of my monthly DMP payment being taken away by repayments to my mate.

Thanks in advance

GeorgeUK

It's a tricky one. On a DMP you aren't supposed to take out any more credit and while technically you haven't, i think it would be seen as being along the same lines.

If the amount you are repaying your friend is less than the combined amount that you would have been paying to the companies that accept, it may not be too much of a problem as this should mean that you can increase the monthly payments to these other companies - when it's time to review your SOA. I would just maintain the payments with the companies not accepting and not inform them of any change in your circumstances until required to do so. As the debts will no longer be paid to CCCS by those that have accepted, i would hope that you are allowed to reduce your monthly payment to them by that amount - but i would seek confirmation of this beforehand.

pinksparkle_2

GeorgeUK wrote: »

It's a tricky one. On a DMP you aren't supposed to take out any more credit and while technically you haven't, i think it would be seen as being along the same lines.

If the amount you are repaying your friend is less than the combined amount that you would have been paying to the companies that accept, it may not be too much of a problem as this should mean that you can increase the monthly payments to these other companies - when it's time to review your SOA. I would just maintain the payments with the companies not accepting and not inform them of any change in your circumstances until required to do so. As the debts will no longer be paid to CCCS by those that have accepted, i would hope that you are allowed to reduce your monthly payment to them by that amount - but i would seek confirmation of this beforehand.

Good afternoon,

I am new to this thread but am interested in making settlement offers, I didnt know this could me done. Can you offer settlement offers if they try and give you notice for a default and if they accept your offer would i be correct in saying that obviously you wouldnt get defaulted the account would just be settled???

Pinksparkle

rayday2

Offering settlements won't get rid of defaults what you bargain for is it showing as settled, a lot of the time they only mark the account as partially settled.

If you are on a DMP (pinksparkle) you must not find the extra money to prevent a default as you could jeopdise the whole plan. If you are so worried about defaults you know what I am going to say

rayday2

CBI wrote: »

Been on a DMP with CCCS now for about 4 months and I'm in a position where I could start making settlement offers.

Say half my creditors accept the offer and half don't what happens? Can I do the deal with the half that will accept?

I'd have to pay back the money to a friend who's helping me out by lending me the cash to get settlement figures, but how would the the creditors that won't accept the settlement suddenly take to a percentage of my monthly DMP payment being taken away by repayments to my mate.

Thanks in advance

Daft question possibly, but, why are you borrowing money to do settlements I certainly would rather be in a payment plan than risk friendships borrowing money.

And as another poster has said whether formal or informal you should not be borrowing money.

xgingerx

Hi Rayday, I understand your point

BUT

lets say I owed 30k and my dad was offering to give me 10k to make a full and final settlement to all my creditors then you would be mad not to take the 10k, clear your debts and be left with owing your dad / family 10k

I agree that you should not borrow to get out of debt but a family member helpng you out then think this would be different

?

rayday2

Yes but if they are with CCCS I believe you sign something to say you won't take out any further borrowings and there is always the risking friendship is it worth it.

Its one of those things OK on paper but far more complicated in real life.

GeorgeUK

I think though there is a department that can advise on making settlement offers - from what i've read, they won't make offers on your behalf but they may be able to advise how to go about it.

The only problem would be as CBI queried in his post - what happens if only some of the creditors accept F&F?

rayday2

The others would notice there were less creditors and possibly start thinking that there are issues with income etc. With it being such early days of a DMP you definately run the risk of destablising it. Also the offers you would get for settlement probably won't be as good as if you were to wait a while a longer.

I know if it was me I would rather leave it in case a company starts pushing for legal action then borrow money to pay it off rather than upsetting a newly establishment DMP.

pinksparkle_2

rayday2 wrote: »

Offering settlements won't get rid of defaults what you bargain for is it showing as settled, a lot of the time they only mark the account as partially settled.

If you are on a DMP (pinksparkle) you must not find the extra money to prevent a default as you could jeopdise the whole plan. If you are so worried about defaults you know what I am going to say

Yes i know what yoi are going to say Rayday, tell OH...!!!

Pinks[arkle
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