Anyone organising their own DMP?

BlueJeans_2

bradfordlad wrote: »

Hi everyone

I've been on the DMP support forum a few times as we've been building up to a DMP with CCCS for a few weeks.

We had our phone appointment with them today, but it appears they can't / won't do it for us for a couple of reasons....

1) we have a Northern Rock Together mortgage and we don't want to include the unsecured element of the mortgage in the DMP as they historically go for a charging order, which isn't good - also the mortgage rate is up for review in February and although I accept a remortgage will be out of the question (Negative Equity!), it'd help us sleep easier knowing the "full" mortgage is being paid.

2) My wife has a loan with her employer which she has no alternative but to pay - it would not be possible for her to keep her job if she tried to make reduced payments - hope its ok if I don't say much more on that? Trying to stay as vague as is reasonably possible with that one!

SO - CCCS can't help us, although they have offered any advice they can.

We are going to to administer the DMP ourselves, and are waiting for the pack from CCCS, but when it arrives I was wondering if anyone has any advice or suggestions to help us "get the ball rolling". We are completely up to date at the moment, but that will change in September! She will be on maternity pay from October - March (£100pw), but we've also got a mortgage payment break for that period so not too bad.

One thing we are REALLY worried about (and it may be just through ignorance) - is there any chance that by making reduced payments with creditors that we could lose our home? It is likely to take years (20+) to clear everything, but I suspect that we may be in a position to make full & final offers to various creditors over the first few years - if its allowed of course!

Any help, support, hand holding or shoulders tocry on would be SO gratefully received.

Thanks all.

BL

Hi BL and Welcome.

I am still learning the ropes myself with 'DIY' DMP's but we went it alone as of 01/08/2009.

When I contacted CCCS online they said it was a complicated case and I needed to phone them, when I phone them they said I needed to call back a different number and couldn't get through so I just thought bu$ger that and posted the letters anyhow.

We have quite a large amount to be repaid (£35,000:eek:) and like you it is going to take an ageeeeeeeeee to pay back but we also hope to be in a position to make F&F's in a few months.

With regards to losing your home I don't believe you can be forced to sell - somebody with more knowledge will be along soon to update you on that.

I haven't included all our creditors in our DMP. A few had very little on them so I continue to pay them as normal.

Have you done a Statement of Affairs and posted to let people have a look at it https://www.makesenseofcards.com . If you stick all your figures in there you then have an options to work out pro-rata payments to your creditors - that what I used.

I then drafted a letter (I can help with that if need be) and attached a copy of our SOA and Pro-rata figure being offered. Make sure you post all these recorded delivery!

I then set up standing orders for the creditors I had the details for and paid them the pro-rata figure. Some I haven't paid as I am awaiting details. I posted these letters around 1/8/09 and as yet haven't heard from any of the creditors but I believe they sometimes don't bother contacting you.

I hope this helps a little as I said I am still in the 'learning curve' myself but just shout and one of us around here will do our best to help.

Good luck
Blue

BlueJeans_2

MyopicMoo wrote: »

Thanks - the council said to use their counter service as their post is backed up by 3 weeks! I will insist on discussing it privately.

We know how much we owe in priority debts and this amount is so high :eek: there will be little left for non-priority so I will send letters proposing a token amount, asking for a full breakdown of each account and their bank details. I can't believe I have been sooooo stupid for council tax for so long. In reality I'm trying to head off bailiffs or worse.

Thanks for your help. I'm trying to get this all sorted while I am still on holiday and have the time to get it sorted.

Hi MM and welcome

I can't offer any advice on this particular query but just wanted to say hi and that I'm doing a self managed DMP too.

I see you've met gargrave - she's the one with the knowledge:p and has helped me through the last few weeks.

Keep posting as I found it to be a great way of emptying your head when it all gets to much.

If you need anything just shout and somebody will get back to you.

Blue x

katchambers

bradfordlad wrote: »

1) we have a Northern Rock Together mortgage and we don't want to include the unsecured element of the mortgage in the DMP as they historically go for a charging order, which isn't good - also the mortgage rate is up for review in February and although I accept a remortgage will be out of the question (Negative Equity!), it'd help us sleep easier knowing the "full" mortgage is being paid.

Even though you have made your own decision about NR and I am not trying to change your mind, I thought you might to hear how it went for me.

I also have a Together Mortgage with NR. The mortgage is £175k and loan is £30k. Since the loan is unsecured I added it to the dmp with cccs (I have 6 creditors on a dmp with cccs and 4 creditors that I am doing myself via self-admin DMP). I was also worried about the implications of the mortgage and the loan within the same account, and I won't lie, every time I pay the mortgage in full and pay a smaller amount of the loan they always underpay the mortgage, so I have to ring them every other month so they can manually move the money into the right account! This has been going on for 18 months and has been fine, albeit a bit of a pain. After being on the DMP for 6 months they decided to take us to court to try to get a charging order. We went to court, we spoke to NR lawyers outside of the court room, he was saying that NR evidence of us paying the full amount is that we have been paying over £700 into the account for months, I said thats for the mortgage, he said 'its the same account' - I said yes - he then made frantic calls to his office before the judge took us inside. Basically the lawyer didn't know that the loan and mortgage were the same account, so he didn't have any evidence that we could pay the full amount.

However, the judge did decided that cccs system of pro-rata payments were not the correct way of doing it. They attribute payments based on your monthly payment rather than the total debt, whereas the courts base it on the debts, so the judge increased the payment slightly to NRs advantage, which didn't affect us at all coz it just means the other creditors get less and NR gets more, no biggie.

Anyway thats my NR story.

Good luck with your DMP.

I would say that as long as you pay all your priority debts then your house will not be at risk, as unsecured lenders cannot take your house, the worst thing they could do is apply for bankruptcy for you, but that is extremely rare and worst case scenario and since your are in negative equity there's no point in forcing you to sell your home.

Take care
Kat x

BlueJeans_2

katchambers wrote: »

I sent them my list of income and outgoings as per the NDL website, it also includes a list of all my creditors and my payments to them.

Their reply was:

Thank you for your recent letter advising us of your financial situation. I understand this must be a difficult time for you and we would like to explore an appropriate solution to your current debt problems as soon as possible.

Thank you for completing an income and expenditure form. All we require now are some proof documents from you. Please send us a photocopy of the following documents:

One of the following:

- benefits forms....blah blah
- if you are employed a photocopy of one of your wage slips dated within the last 3 months

Please also send a photocopy of one of your bank statements dated within the last 3 mths showing receipt of your income and general living expenses where available.

Please send these documents within the next 7 days to enable us to help you. Until we receive these documents, you will continue to receive any due fees and interest to your account....


Any thoughts?

Thanks
Kat x

Hi Kat

Capital One must have been busy over the last few days as I have just rec'ed this letter today as well.

I am going to try and get some answers from another site and I will up date as soon as I can.

Blue

MyopicMoo

Afternoon all,

Busy day today, after all my preparation the meeting with the council was fine. The lady I saw was very nice and agreed to our proposals without any problem.

I have sent email to the other councils (or the bailiffs they have appointed) giving our proposal, the fact that our current council have agreed and telling them that I have set up a standing order. So now just have to wait for their replies.

Had a bit of a problem with one of the companies - I called to ask for their bank details so I could set up the SO. The rude person at the other end refused to give me the details! They said the account was in OH's name (even though as it is council tax and in joint names and all our letters have been from us both ) and so she couldn't discuss the account with me. I told the silly woman that I didn't want to discuss the account, I just wanted THEIR bank details. She still refused so I said that I would set it up with the council details. She told me I couldn't do it and they would refuse the payment. I still set it up but have sent an email to the council (and the bailiff) explaining why I have done this and asking them to sort it out between them.

On a more positive note, I got £50 for some old jewellery I don't wear.

Next step, to sort out the non-priority stuff.

BlueJeans_2

Glad you had a productive day MM. Me - not so much!:rotfl:. Going update my dairy soon if you want to have a read. I'll post the link.

http://forums.moneysavingexpert.com/showthread.html?t=1874265

gargrave50

BlueJeans wrote: »

Hi MM and welcome

I see you've met gargrave - she's the one with the knowledge:p and has helped me through the last few weeks.

Blue x

:rotfl::rotfl::rotfl::rotfl::rotfl::rotfl:Knowledge, me?:rotfl::rotfl::rotfl::rotfl:

bradfordlad

katchambers wrote: »

Even though you have made your own decision about NR and I am not trying to change your mind, I thought you might to hear how it went for me.

I also have a Together Mortgage with NR. The mortgage is £175k and loan is £30k. Since the loan is unsecured I added it to the dmp with cccs (I have 6 creditors on a dmp with cccs and 4 creditors that I am doing myself via self-admin DMP). I was also worried about the implications of the mortgage and the loan within the same account, and I won't lie, every time I pay the mortgage in full and pay a smaller amount of the loan they always underpay the mortgage, so I have to ring them every other month so they can manually move the money into the right account! This has been going on for 18 months and has been fine, albeit a bit of a pain. After being on the DMP for 6 months they decided to take us to court to try to get a charging order. We went to court, we spoke to NR lawyers outside of the court room, he was saying that NR evidence of us paying the full amount is that we have been paying over £700 into the account for months, I said thats for the mortgage, he said 'its the same account' - I said yes - he then made frantic calls to his office before the judge took us inside. Basically the lawyer didn't know that the loan and mortgage were the same account, so he didn't have any evidence that we could pay the full amount.

However, the judge did decided that cccs system of pro-rata payments were not the correct way of doing it. They attribute payments based on your monthly payment rather than the total debt, whereas the courts base it on the debts, so the judge increased the payment slightly to NRs advantage, which didn't affect us at all coz it just means the other creditors get less and NR gets more, no biggie.

Anyway thats my NR story.

Good luck with your DMP.

I would say that as long as you pay all your priority debts then your house will not be at risk, as unsecured lenders cannot take your house, the worst thing they could do is apply for bankruptcy for you, but that is extremely rare and worst case scenario and since your are in negative equity there's no point in forcing you to sell your home.

Take care
Kat x

Thanks Kat, thats really interesting! We also have 2 x rock "normal" loans which we will have to include in the dmp. Are they likely to go for a charging order on those too?

As far as the house goes, it's not the fear that we will be forced to sell the house, more that in some sneaky way or another that we will have the house repossessed. We are so scared of this.

thanks for all the help & welcomes so far!!

BL

MyopicMoo

Hi, Blue I've subscribed to your thread. Having read it you are due a little rest! :beer:

Gargrave, you have been knowledgable :T, to be honest this thread is what finally prompted me to actually do something.

I have to say I am rather miffed that I have had no reply to my emails, not even a phone call - admittedly I only sent them this afternoon...but still :rolleyes:.

MyopicMoo

Good Morning all.:wave:

A quick update: using Gargrave's excellent letter as a template I am currently writing the token/reduced payment letter. I am going to include our SOA and if it is with a DCA I'm going to ask for the deed of assignment. I will send these by recorded (although that is pricy :eek:).

Had a long chat with OH and he seems to be on board - I explained that this was the best way to sort out our mess. Our credit rating is shot anyway so it can't really get any worse and we would be debt free in about 3 years. I also said the worst that could happen is that we could be made bankrupt, but even that gives us the chance of a fresh, debt-free start.

Phew! Must get these letters done and post them.