Dmp

kingston_2730

Just wondered do any of you know of anyone who has had their house taken as a result of being on a DMP? Just considering all options at the moment. Thankyou.

Tixy

I have never heard of anyone having this happen to them.

First a lender would have to not accept your DMP proposal.
Then they would have to take you to court and you either not ask to pay in installments or would have to have a CCJ awarded and then you miss some of your installments (which if you provide a budget are usually very similar to your DMP payments so you should be able to afford them.

Then the lender would have to try to get a charging order against you, these are not common and there are various reasons you can put forward as to why a CO should not be granted.

Even with a CO it is very very uncommon for a judge to order a forced sale. Usually with a CO the debt becomes secured on your property until such time that you sell when you must use any surplus funds after the mortgage is paid to go towards settling the charging order.
But judges do not do this lightly and again there are often good reasons why you can argue against a forced sale.

All these would be a long way off. Usually on a DMP your payments will be accepted. Some people are unfortunate and end up with a CCJ or 2.

The only other reason why your house could be taken off you would be if one of your creditors decided to petition for your bankrupty, again this is really really rare. It can happen if you owe HMRC money but for consumer credit it is really uncommon as if that happens usually they would see even less money than accepting your DMP.

If a DMP is the recommended action for you (recommended by one of the charities) then I wouldn't let the very remote chance of a charging order and sale of your property put you off doing the DMP.

If you are concerned talk to whichever debt charity you have spoken to to discuss your fears.

MRS_A_3

Thanks for the info Tixy.

I have these fears also seeing as though the CCCS have given me a DMP of 10 years

kingston_2730

Tixy wrote: »

I have never heard of anyone having this happen to them.

First a lender would have to not accept your DMP proposal.
Then they would have to take you to court and you either not ask to pay in installments or would have to have a CCJ awarded and then you miss some of your installments (which if you provide a budget are usually very similar to your DMP payments so you should be able to afford them.

Then the lender would have to try to get a charging order against you, these are not common and there are various reasons you can put forward as to why a CO should not be granted.

Even with a CO it is very very uncommon for a judge to order a forced sale. Usually with a CO the debt becomes secured on your property until such time that you sell when you must use any surplus funds after the mortgage is paid to go towards settling the charging order.
But judges do not do this lightly and again there are often good reasons why you can argue against a forced sale.

All these would be a long way off. Usually on a DMP your payments will be accepted. Some people are unfortunate and end up with a CCJ or 2.

The only other reason why your house could be taken off you would be if one of your creditors decided to petition for your bankrupty, again this is really really rare. It can happen if you owe HMRC money but for consumer credit it is really uncommon as if that happens usually they would see even less money than accepting your DMP.

If a DMP is the recommended action for you (recommended by one of the charities) then I wouldn't let the very remote chance of a charging order and sale of your property put you off doing the DMP.

If you are concerned talk to whichever debt charity you have spoken to to discuss your fears.

Who are HMRC? WOuld they be likely to petition for BR if no equity in house?

GeorgeUK

HMRC = Her Majexty's Revenuse & Customs
They collect tax.