DMP with CCCS

Sukey

Hi Everyone!

Just wanted to sound you all out before I contact CCCS.

I had my phone interview with CCCS a couple of weeks ago (basically have £81k of unsecured debt). Because my SOA showed that I only had £50 left over at the end of each month the CCCS said that I wasn't eligible for an IVA or DMP and that I should either sell my property and offer full & final settlement to creditors (this would be less than they are owed as not enough equity in property to cover debt), or declare myself bankrupt.

However, I have now managed to shave £170 off my monthly mortgage repayment (yippeee!), so now have £220 left over each month to chuck at my debts. Does anyone know if this will now qualify me for an IVA/DMP. I appreciate that this is just the bare facts and the likely response will be to call CCCS to find out.

Any suggestions gratefully received!

Suke

p.s.
Just also wanted to add that you are all an inspiration on here. I check the forum everyday but rarely post and am always heartened by the kindness you show to people in real despair. Keep it up - the world needs more people like you guys!

southernscouser

Hi Sukey!

It is possible that they will enter you into a DMP however when they work out your budget you probably realised that they don't like to leave you stretched for money.

However if that £170 is totally freed up rather than cutting back to much which may backfire you can but ask!

CLAPTON

basically the maths is this:

if you have 81,000 of debt and say all the interest is frozen on a DMP
if you pay 220 per month then it will take 30 years to pay off the loans
(check the maths)

for an IVA, if you have equity in your house they would require you to free up most of that anyway.

you dont say how much equity you have but either realising it yourself and making Full and final settlement or go bankrupt and make a fresh start seems more realist alternatives

sorry i cant be more positive but obviously ask CCCS again.