DMP and first CCJ REALLY SCARED

miracle4

Hi All,
I am writing this with tears streaming down my face. I thought things could not get worse. To cut a long story short my partner and I bought property abroad 5 years ago as an investment. We fell in love with it but renting it out was hard, by the time we needed to sell as we could not afford to keep it going we slid in to uncontrollable debt. Hindsight is a great thing and I will have to live with this for ever. The market crashed in the USA and now we have a house that has bled us dry. We have no equity and it is so hard.
I entered into a DMP with Payplan in November 09 and most of our creditors have been great. However, Natwest and Nationwide will not accept anything and this morning we got our first CCJ form from NATWEST. Payplan is not open and I am so scared. Will we have to go to court. Will I lose my job?
I am sorry I sound week but i have come to the end of my tether.

bectoria_2

OK first of all don't panic it's not as bad as it seems.

Like you I have a DMP with payplan and as a result of this HFC went down the CCJ line. You don't need to go to court unless you are defending the claim. If the CCJ is confirmed (sorry I don't know the official terms for all these things) you will either be ordered to pay the full amount immediately (as in my case) or by monthly payments. If the amount is to be paid immediately and you can't make the payment then Natwest can apply for a charging order which then secures the loan on your house. Again don't panic if this happens it doesn't mean that you are forced to sell or anything. You would need to apply to the court for the amount to be paid by monthly instalments and they are likely to do this.

Really nothing will change only that this will be a more formal arrangement than those to your creditors on the DMP being an informal agreement. The court will decide how much you should pay Natwest each month and this will be the same as what you are currently paying through Payplan as that is all you can afford.

A CCJ will wreck you credit rating for 6 years but if your on a DMP then you wont want any credit anyway.

You wont lose your job, work don't need to know it wont be in the paper or anything.

However I suggest you post a thread on the debt-free wannabe page as there are some really helpful chaps on there that know how to defend CCJs so you may not even get to this stage. I wish I'd know I could do that before I got mine. Payplan will not help you defend they will just tell you to fill in certain parts of the paperwork and send it to them to complete.

Hope this helps reassure you a little bit and I've not scared you too much, I promise it's not that bad and will get better.

fermi

Unless you wish to defend/dispute the CCJ, then you will never have to go near a court.

What is your job? Why do you think a CCJ would mean you losing it?

There are plenty of people here on a DMP where a creditor has gone for a CCJ. In all honesty, as long as you don't ignore it, it's not a huge deal.

bectoria_2

Sorry ignore me about putting a thread on the debt free wanna be forum that's where you are I've confused myself!!!

DarkConvict

Please give this a read by 10past6 - https://forums.moneysavingexpert.com/discussion/2045387

miracle4

Ok now slightly confused. There is now doubt I owe them money but they turned down the offer Payplan gave. Do I fill in the paperwork or does Payplan.
Bless you all, it is good to know that we are not the only ones.

fermi

You fill in the paperwork yourself.

PayPlan may offer to deal with it for you, but last time I heard of them doing that for someone they messed it up!

If you want to just make a fair payment offer in response, then just use the figure PayPlan would have paid them if they had accepted it.

miracle4

This may sound strange but the form does not really give you a chance to explain why and to be honest all the creditors do not even seem to be bothered what caused this and rightly so they just want their money. Could I add a cover note to the court to explain why and what we are actively doing to get out of this situation.

terryw

With the CC papers there will be a section where you can admit the debt and make an offer to pay by instalments. If the offer is not accepted, the court will decide what a fair payment is.