Dmp And Bankruptcy

crafty1

I am seriously thinking about getting dmp up and running - but I'm terrified that creditors may refuse my payments and apply for us to go bankrupt - whatever happens I do not want to lose my house.


Does anyone have any advice or experience of dmp's and bankruptcy.
Thanks x

Deep_In_Debt

Hi
Welcome.

If you are thinking of a dmp, please contact one of the FREE providers such as CCCS, Payplan or CAB and not one of the money making sharks.

I'm on a dmp with CCCS and have been since January and generally it's been going pretty well. Most of my creditors froze interest pretty much immediately. Generally creditors will accept payments but it takes a bit of time for some of them. If they refuse payments, CCCS will just keep sending the payments to them anyway.

Please don't worry too much. I think bankruptcy is unlikely providing you keep making the regular payments.

Good luck.

crafty1

Thanks, I have contacted CCCS i just need to ensure my SOA is all correct before submitting it.
Do you still have enough left over to buy xmas presents and give your kids good birthdays? What about the occasional night out??

Deep_In_Debt

Hi
Things like xmas and birthdays I think they allow you a budget of £10 for each, each month. However, I found the budget that they gave me for groceries was quite generous and within a few months have managed to live on half the budget so I have now managed to save the rest of the budget allowance for things like entertainment or emergencies.

crafty1

oh good because that is what I was hoping too. I am really scared though, about creditors not accepting plan not freezing interest, CCJ's etc - can't imagine living under this cloud for a long time, but I suppose over time you do begin to enjoy life again

telboy99

Hi Crafty1,
I have been on a DMP with CCCS for 18 months now and they have been excellent.A DMP becomes a way of life and a lot of the letters stop after a few months.Most of my creditors have stopped interest.
Try not to worry.
Good luck,
Telboy99

crafty1

I've taken the first step, I've opened a basic bank account with the co-op, very easy over the phone.
My moods are up and down at the moment, but I know we don't have any choice - so trying to hang on to the 'up' moods!!

Deep_In_Debt

Yep, most of my creditors froze interest fairly quickly but a couple didn't and we are still working on them. You've gotta ride the storm for a couple of months but it does get easier. There is a risk of CCJ's but I've had no threat as yet. Chances are, the court would look favourably on you as you are on a dmp and keep your payments the same. If you do get court papers, contact CCCS and come back on here and peeps will talk you through what to do.

It does become a way of life and it does get easier as time goes on. You learn to live within your budget and it's great to have money in your account at the end of each month even if it is just 1p! I managed to save a bit and have cleared off a couple of smaller debts by offering full and final settlements with the money so that could be an option for you too.

crafty1

I have a couple more questions please!

I pay £200 a month repayment of a loan from family, will my creditors ask me to reduce/stop this as it was aloan from family?
Also i pay £160 a month to a friend as she looks after my 2 kids while I'm at work, she isn't a registered childminder it's just an informal agreement between the two of us - can I get into trouble for this??
Also am I right in thinking you can only get issued with a Charging Order if you fail to keep up payments on a CCJ?

Thank you so much, everyone is so supportive on here. I just keep bursting into tears.

RAS

crafy

You will have to pay all your creditors pro rata.

if you already have a CCJ, you continue to pay this outside the DMP.

And I think your friend needs to check out her situation, if she is caring for children beyond a certain number of hours, as it is her who could be in trouble.