Can a DMP loose you your home?

Hi there,

Apologies if this has been asked before but I couldn't seem to find anything similiar in the Forums. After, embarrasingly, years of borrowing...I've got to the point where I need to start taking some responsibility and try to make my life less stressful.
I'm approx £50,000 in debt with unsecured loans and credit cards....this all spiralled out of control with gambling last year. I've finally seeked help and no longer gamble but it leaves with no money each month to live on after making all my fact I'm approx £600 in arrears with my marbles credit card so already it's got way out of control.
I'm going to contact the national debt helpline today but I was wondering, does anyone know if I manage to get a DWP or any solution to help me, will that mean I loose my property? If the housing market wasn't how it is at the moment I would sell but I doubt I have any equity after recent house price changes.
Sorry for waffling on but don't know which way to turn!!!


  • nzseries1
    nzseries1 Posts: 2,240 Forumite
    Hello Flea, well done in taking the first step - however you have posted on the "Credit Cards" board where people typically talk about credit cards themselves, not the actual debt problems associated with them. I suggest you repost everything you just said on the "Debt Free wannabe" board - the lovely people there will be able to help you out.

    EDIT - now moved to correct board :)
    You're spelling is effecting me so much. Im trying not to be phased by it but your all making me loose my mind on mass!! My head is loosing it's hair. I'm going to take myself off the electoral role like I should of done ages ago and move to the Caribean. I already brought my plane ticket, all be it a refundable 1.
  • Flea
    Flea Posts: 13 Forumite
    Thank you :-)
  • shinyhead
    Hi Flea,
    National debtline are excellent and will be able to answer your questions. They help you set up your own DMP. CCCS or Payplan are also marvellous and they will negotiate on your behalf and administer your payments to your creditors. Neither charge for their services, as ND doesn't ccharge for its advice. I'll post again with some contact numbers. CCCS do an online debt remedy which will help you think about your options.

    A DMP in itself shouldn't lose you your home-in fact the idea of it is to stop exactly that. However it is an informal agreement and won't stop any creditor taking legal action against you. That's when you will have to be careful. That doesn't start for a while yet, if at all.

    Other options are bankruptcy or an IVA. Both will involve your house. BR will make you sell it to realise any equity to go toward paying off your debts and an IVA I believe makes you remortgage towards the end to release equity. That's assuming you have any.

    I'll come back with more info in a minute.
  • Flea
    Flea Posts: 13 Forumite
    Thank you so much :-)
  • riquelme
    flea - welcome, you are in the right place.

    i was where you are 6 weeks ago, i came on here and thought the whole world was coming to a end, i got some great advice.

    1st thing just relax, dont try and sort everything in 1 day, you will get some good advice here.

    2nd thing, please stop gambling, you wont win the money back itss gone

    3rd. take a look at the gambling spport hread, there are a few of us on there that are in the same sitiuation or are recovering. you wont be judged

    ok this is what i did, i contated cccs and arranged an appointment with them. they went through everything with me and have contacted my creditors, i start a DMP in a couple of days and it leaves me with money to live, pay mortagage etc

    with a DMP you pay your priority bills 1st then offer your creditors what you can afford.

    stay with s and keep checking the boards for support, others will be along soon, george uk is particularly helpful
  • GeorgeUK
    GeorgeUK Posts: 7,737 Forumite
    Hi Flea
    Well done on taking the first step.

    There are a few things we can do to reduce either the amount of interest we pay or to arrange reduced payments to our creditors.

    Are you in Scotland or England? There is a slightly different setup for Scotland that may allow you to stop any interest being added to your debts. You can request this if you are in England, but it as their discretion.

    As already suggested, the free debt charities CCCS or Payplan will be able to assist with setting up a debt management plan (DMP). If you post up a statement of affairs (the charities will need to look at something similar to this), we may be able to spot some savings you can make from your current expenditure.

    You shouldn't lose your property by having a DMP, but you will not find it easy to get credit and when it comes to remortgaging, you won't be offerred the better rates. If a company refuses to agree to your repayment plan, they could take you to court. This could result in a CCJ where the judge would decide on a fair amount to repay based on your income, expenditure and debts - just like on a DMP. The only difference being that these repayments must be met as the court has ruled on them. It is at this stage if you fail to maintain repayments that bailiffs may be called in or a charging order be put on your house. There is plenty of information around, especially from the nationaldebtline website, but basically this allows them to secure the debt to your property so they will get paid if you sell the property. It is very rare for a forced sale to be made. You are a long way from this.

    I suggest you complete the SOA complete with APR's and minimum payment for the debts. It is possibly too late to apply for 0% cards, but if you are unable to meet the minimum payments, these may not be of much help.

    There is also the possibility of requesting copies of your customer credit agreement (CCA). If they are unable to produce a copy with the required prescribed terms, then the debt may be unenforcable and payment need not be made to the debt.
    Have you requested copies of the customer credit agreements (CCA) for the creditcard and loan debts? If they are unable to produce them, with the prescribed terms, then the debts may be unenforcable.

    Also, Have you tried reclaiming your credit card charges, bank charges or checked to see if you were missold and PPI on the loans?
    After falling off the gambling wagon (twice): £33,600 (24,000+ 9,600) - Original CC Debt: £7,885.91

    Dad Gift 6k ¦ Savings & Inv Tst: £2,500
    Loan 10k: £0 ¦ Dad 5.5k: £2,270 ¦ LTSB: £0 ¦ RBS: £0 ¦ Virgin £0 ¦ Egg £0

    Total Owed: £2,270 (+6k) 11/08/2011
  • Flea
    Flea Posts: 13 Forumite
    Thank you all for your great advice - I think I'll contact the CCCS - all I care about is that I don't let my sister down by losing our flat, she would be crushed and I couldn't put her through that!!
    Without sounding awful, it's nice to know that I'm not the only person in this situation!! Thank you very much :-)
  • coolcait
    coolcait Posts: 4,803 Forumite
    First Anniversary Combo Breaker Rampant Recycler
    Flea wrote: »
    Thank you all for your great advice - I think I'll contact the CCCS - all I care about is that I don't let my sister down by losing our flat, she would be crushed and I couldn't put her through that!!
    Without sounding awful, it's nice to know that I'm not the only person in this situation!! Thank you very much :-)

    Hiya Flea

    Just to repeat what GeorgeUK said - if you're in Scotland, you might be able to get onto the Debt Arrangement Scheme. Under DAS, your creditors HAVE to freeze interest. It also stops them taking legal action against you, and it will protect your home.
  • riquelme
    FLEA - make sure you come back and get some more advice, i was where you are because of gambling a month or so back. it gets easier, and wen you ca see a way forward and out of this you will be alot happier, stay in touch
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