CCCS or Payplan?

Buster2007

Hello,

Which company would you use and why? I have to make my mind up by this evening....

Also would anyone know if you have to release equity in your house if you have an IVA? I wanted to do an IVA as a DMP will take 19yrs and 9mths to pay and I will be over 60 by then!! I will not sell my house which is jointly owned with a partner so have been told my only option is a DMP.

I am getting £10k in 4yrs time, could I not give this to an IVA instead of releasing equity on my house???

Any help really will be appreciated

Thank you

DarkConvict

From my friend that spoke to them previously, I would go with CCCS.
PayPlan do run DMPs for free, but they are not a charity and may try and sell you additional services.

pepe2008

Beware IVA. As far as I know you would be required to release some og the Equity and put it to the debts after 5 years....and in the meantime you will be paying out a large amount of cash to the IVA Co.

Tixy

Hi Buster

CCCS are recommended officially on this site and Payplan are not anymore. That said Payplan are used by quite a number of people on here and most are happy. I'd talk to the CCCS first.

Regarding the £10k - even if you go down the DMP route presumably this will considerably shorten the 19years? You may be able to use this money to make a number of full & final settlements.

You are required to release your half of the equity in the house by remortgaging your property in year 5 (I think) so you may not actually have to sell if you can remortgage. I think you would also be expected to put the £10k into the IVA on top of doing a remortgage (although that depends on where it is coming from of course)

I would talk to CCCS and see what they recommend and talk through the suitability of an IVA with them.

Chillout5892

Hi there. Don't fret. I'm with PayPlan, recommended by Bristol Debt Advisory Service. I'm also on a DMP which theoretically will last for the next 24 years, until my early 70s. So I understand your reticence. However being on a DMP immediately stops the aggressive phone calls and threats of litigation, and this gives you time to calm down, think and re-organise and at any time in the future you can choose a different option.
I have to say I have found PayPlan absoloutly BRILLIANT!!! I've feel so supported and back by an advocate who absolutely has my best interests at heart.
There maybe some factors in your favour that you are unaware of and I would be very happy to discuss this with you off list or by phone.

You're not alone.

Chillout5892

Hi, I've sent you a private message.

brokeinyorkshire

Hi.

I am with Payplan.

I WAS with CCCS but they wouldn't let me use my Disability Living Allowance ( care component )for my own needs and insisted it was income.

Payplan count it as money for my care needs ( which it is ) so i am happy to be with them.

DarkConvict

DLA should be treated as both an income, but also an outgoing as a care cost. As with all benefits.

I'm surprised CCCS didn't let you put it in.

Buster2007

Thank you for all your replies

I have been told my DMP will be £192 per month for 19 years and 9 months!!

Reading the internet about IVA's it says 5-6 years max and minimum payment £200 per month (I am sure I could find the other £8 to make £200 )?

As I understood it an IVA is for 6 years max? I am not trying to get out of paying my creditors by writing off all my debt as I did borrow the money and I do owe it but if I can get some written off then, as anyone would, I'd rather take that route than nearly 20 years of being black-listed and unable to get any credit.

My only concern is my house, it is owned with my partner, we are not married and he has no debt, he was, to say the least, VERY angry with me over all this and will not think about a re-mortgage or selling. I have to say I do not want to sell either.

I just saw an IVA as a way of hopefully clearing my debt over 6 yrs max and not having to sell my house........ Do I have any other options other than a DMP for nearly 20 years?

How the hell I got in this mess I will never know.... Wouldn't mind if I had a wardrobe full of designer gear, a posh house and a flashy car but I haven't...:(
But taking £300 cash out on my credit card to go to the bank to pay the card bill was getting silly, paying essential bills like shopping with it hasn't helped either.... Looks like I now have to pay for it for the next 20 years I hate credit cards and will NEVER touch one again!!

DarkConvict

IVA is used to protect assets like a house/car.

If you have no assets, and you cannot reasonably pay off your debts within ~6 years then bankruptcy maybe an option. Bankruptcy differs to an IVA as in BR they will seize your assets like house, cars etc to pay off the debts, they will then take 50-70% of your surplus cash for atleast 3 years, and the actually BR is just 1 year. Joint debts will with either BR or IVA be fully liable to the other holder.

brokeinyorkshire

DarkConvict wrote: »

DLA should be treated as both an income, but also an outgoing as a care cost. As with all benefits.

I'm surprised CCCS didn't let you put it in.

I know. Me too.

Payplan have done it as described above but CCCS definitely didn't.

Weird.