DMP Mutual Support Thread (Part 6)

DotNetter

Hi all

I've filled out the Debt Remedy on the CCCS and have chosen a debt management plan as my DW was dead against an IVA because she was concerend we'd loose the house (still not sure if we would or not - bit confused on that one).

Anyhow, my DMP says that we would be debt free in 9years 7months based on a £546 monthly payment.

I have some questions I'm hoping you guys can answer as I'm hoping some of you have been there and done that so to speak.

What happens if the DMP is refused by creditors...if too many of them refuse can we just revert to paying what we were (a struggle at best) or swap to an IVA?

If they don't accept and the debt gets passed to a DCA what are the options then - I don't want people turning up when I'm not home and scaring my wife and kids with talk of removing goods from the home or worse.

Are there any creditors that generally don't accpept DMP's; here's a list of our creditors:-

NorthernRock - £130k mortgage + £30k personal loan (together product)
Lloyds TSB Credit Card - £13k
Barclaycard credit card - £4,800
Barclaycard credit card - £700
HSBC credit card - £6,850
Citicard credit card - £3,850
HSBC bank overdraft - £1,300
HSBC bank overdraft - £200
Blackhorse sotre card - £1300

My worry is that as soon as these creditors receive letters from CCCS or from us they will sell the debt to a DCA and there will be no way back...we'll be looking at charges on our property etc

Can anyone shed any light?

Cheers,


Wayne

ianmak

DotNetter wrote: »

Hi all

I've filled out the Debt Remedy on the CCCS and have chosen a debt management plan as my DW was dead against an IVA because she was concerend we'd loose the house (still not sure if we would or not - bit confused on that one).

Anyhow, my DMP says that we would be debt free in 9years 7months based on a £546 monthly payment.

I have some questions I'm hoping you guys can answer as I'm hoping some of you have been there and done that so to speak.

What happens if the DMP is refused by creditors...if too many of them refuse can we just revert to paying what we were (a struggle at best) or swap to an IVA?

If they don't accept and the debt gets passed to a DCA what are the options then - I don't want people turning up when I'm not home and scaring my wife and kids with talk of removing goods from the home or worse.

Are there any creditors that generally don't accpept DMP's; here's a list of our creditors:-

NorthernRock - £130k mortgage + £30k personal loan (together product)
Lloyds TSB Credit Card - £13k
Barclaycard credit card - £4,800
Barclaycard credit card - £700
HSBC credit card - £6,850
Citicard credit card - £3,850
HSBC bank overdraft - £1,300
HSBC bank overdraft - £200
Blackhorse sotre card - £1300

My worry is that as soon as these creditors receive letters from CCCS or from us they will sell the debt to a DCA and there will be no way back...we'll be looking at charges on our property etc

Can anyone shed any light?

Cheers,


Wayne

Welcome Wayne.


An IVA is normally best if you are not a home owner. Don't ask me why, I think it has something to do with you having to split any profits from selling your house in the future? A bit like a charging order I guess? DO NOT quote me on that though.

If creditors don't accept, they don't accept, they will continue to accept your payments though, and if they sell on to a DCA, then all the better (They generally buy the debt cheaply from the creditor then are (normally) happy for you to continue paying). It all depends on the creditor & DCA. You won't generally get doorstop collectors, and if so you don't need to let them in, and call the police if they're a nuisance.

As for creditors, they all seem to treat each case differently, so I've had no issues with Northern Rock (YET) and others have had no end of troubles.

pwally2

Hi Dotnetter!! Welcome along!!! Well done for taking the first steps. Think the DMP is the best way esp if you own your house. As to your creditors am sure they will expcet your proposals most tend to I have been on DMP through CCCS for about 1yr only 4 more to go!!! only 1 of my creditors iis being a pain still letters have been sent so will update when i hear more!!! Things take a while to calm down but I never had any issues with people calling round my house demanding payments they tend not too if youve proposed a payment. Stick with it lots of help on these forums and some inspiring stories. Post a SOA and people will come and offer help in cutting back etc and budgeting. Good luck hope it all works out for you keep us all posted!!!

geoffmr1

boot13t wrote: »

Good evening,

I have a question regarding a creditor attempting to attach the debt to the property. I've had someone on from the High Value Debt department at RBS to inform me that the accounts will be going to default and the debt will end up registered against the property if we don't provide up to date information on the a number of RBS accounts.

We have had six month of utter crap with RBS and various departments, they refuse to acknowledge the existence of Payplan and yet send us an agreement last week to say everything is spot on.

I believe any debt can be attached to the property but it is rare this action is followed through. Any thoughts or comments would be appreciated.

Thanks in advance.

Boot

Hi Boot,

RBS cannot just attach an unsecured debt against your home. Firstly they need to take you to court & get a CCJ & forthwith judgement against you. If they successfully manage that then they can apply for a charging order. There is absolutely no guarantee that a Judge would award them a charging order, he/she would look at the amount you are paying & what you can genuinely afford. It really is 50-50 on whether a creditor would be granted their wish (unfortunately it can come down to something as simple as the mood of the Judge on the day, but that could just as likely go for you as against).

Even if the worst came to the worst & they got the charging order they wanted (which cannot be made final if the mortgage is in joint names but the debt is a sole debt, but thats a discussion for another day), all you would need to do is attend court for the charging order hearing & get the judge to put in certain stipulations such as that all interest is stopped, that you can make the payments payplan have worked out until the debt is paid & that there will be no no forced order of sale.

The only reason I'm so against charging orders is that they can prevent you from getting better mortgage deals (although that can be near impossible on a DMP anyway), but other than that they really aren't that bad as long as you attend on the day & make sure those stipulations are put in place.

Hope this helps.

geoffmr1

ianmak wrote: »

Welcome Wayne.


An IVA is normally best if you are not a home owner. Don't ask me why, I think it has something to do with you having to split any profits from selling your house in the future? A bit like a charging order I guess? DO NOT quote me on that though.

If creditors don't accept, they don't accept, they will continue to accept your payments though, and if they sell on to a DCA, then all the better (They generally buy the debt cheaply from the creditor then are (normally) happy for you to continue paying). It all depends on the creditor & DCA. You won't generally get doorstop collectors, and if so you don't need to let them in, and call the police if they're a nuisance.

As for creditors, they all seem to treat each case differently, so I've had no issues with Northern Rock (YET) and others have had no end of troubles.

Hi Ian,

I could be well off track as well but isn't an IVA worse for homeowners because if you have equity in your property then having paid quite a large sum over 5 years you have to make a lump sum payment at the end. You're still paying back far less than you actually owe but it's that lump sum that causes problems. If you rent then there wouldn't be a lump sum payment as you wouldn't have any equity.

I read somewhere several months back that approximately 75% of people that enter IVA's become bankrupt. Personally I don't think I'd ever consider that route, at least with a DMP you keep some of the power.

marriedworriedmum

Morning everyone!

A big hi to everyone who has posted for the first time, ive just started the dmp route myself (well me and the other half although i seem to be the one doing all the phonecalls and paperwork grrrr) and this forum has provided a great source of information and comfort..

Not been able to catch up on everyones posts (little one wont allow me the time hehe) but hope evryone is ok? we got our info pack through just sending off the dmp letters to creditors and postal orders (as we're now without a chq book) and then we're going to wait and see what response we get.
All has been strangely V quiet on the creditor front especially as they havent had the min payments this month???? although i think it is probably the 'calm before the storm'...this time next week ill probably be snowed under.

Hope to pop back on this afternoon while L/O has a sleep
have a good day everyone x

Hamstan

Hi Wayne - Dotnetter
Thought I'd just add to the other respones as we have a few mutual creditors in HSBC Citi and Barclaycard and apart from being inundated by phone calls to home and work from citi in the pre dmp days, all of them have been fine. They all accepted and stopped interest and definitely no one has called round and no charging orders, court etc etc so try not to worry although it's hard not to.

Citi sold debt to 1st credit who have sent plenty of offer settlement letters 30% and 50% deals but we cant afford to pay!

I think you will soon find out a dmp is the best way forward once you get over the early stages of paperwork etc and ours is ticking along nicely after 18 months but still a long way to go.
Don't forget you may need to open a new basic account if you haven't already.
Good luck and keep posting

DotNetter

Hamstan wrote: »

Hi Wayne - Dotnetter
Thought I'd just add to the other respones as we have a few mutual creditors in HSBC Citi and Barclaycard and apart from being inundated by phone calls to home and work from citi in the pre dmp days, all of them have been fine. They all accepted and stopped interest and definitely no one has called round and no charging orders, court etc etc so try not to worry although it's hard not to.

Citi sold debt to 1st credit who have sent plenty of offer settlement letters 30% and 50% deals but we cant afford to pay!

I think you will soon find out a dmp is the best way forward once you get over the early stages of paperwork etc and ours is ticking along nicely after 18 months but still a long way to go.
Don't forget you may need to open a new basic account if you haven't already.
Good luck and keep posting

Firstly, thanks to all that have posted so far. I'm still feeling really stressed by it al but better to know we're not alone

I was just about to post and ask about bank accounts!

I'm currently with HSBC and obviously need to get a new account in place as they are also on my creditors list.

Will banks be ok with me opening an account if I then go into a DMP? Are there banks that are preferable to use? Also, I have SOOO many direct debits for different things - how easy is it to move these to a new bank?

cheers,


Wayne

DotNetter

DotNetter wrote: »

Firstly, thanks to all that have posted so far. I'm still feeling really stressed by it al but better to know we're not alone

I was just about to post and ask about bank accounts!

I'm currently with HSBC and obviously need to get a new account in place as they are also on my creditors list.

Will banks be ok with me opening an account if I then go into a DMP? Are there banks that are preferable to use? Also, I have SOOO many direct debits for different things - how easy is it to move these to a new bank?

cheers,


Wayne

I've opted for a Co-Operative Bank "cashminder" account which is a basic account (so no cheque book etc) but it does come with a Visa debit card so is better than some of the Solo options that were about.

found it listed here: http://forums.moneysavingexpert.com/showthread.html?p=26955475&posted=1#post26955475

Took me 5mins on the phone and they will send everything out which is normally done with 4 working days!

They also send a 'switch' sheet which i fill in and then they move all of my direct debits from my existing bank to them

It means that I can't proceed with the DMP this month as I won't have everything in place in time - but January 1st 2010 sound like a great date for me!

Cheers guys,


Wayne

DotNetter

Can I get me one of those lovely DMP mutual support thread member numbers please someone?