Seeking Advice

boblardo

Since Jan 09 we have been making regular payments to our creditors via a dmp with CCCS. We considered bankruptcy towards the end of 2009 and more recently discussed the possibility of an IVA with the CCA.

We sat down had a long hard think and decided if my wife returned to work we would be able to increase our payments. Over the past 3 months my wife has returned to work and we have started self managing our own DMP. As a result we have increased our payments to some of our creditors, in some cases increasing payments from £5 to £50.

We have been super strict and with the help of a couple of small bonuses we have managed to clear almost £1000, reducing our creditor list down to 4 from 10.

The four that remain are Northern Rock, DLC and 2 Wonga loans. Wonga have recently offered me a settlement figure which reduces my deb by 40% provided I make 3 payments of £255.92. I have agreed this and can still meet agreed payments with the other creditors.

After further discussions we decided to get a new car, we shopped around and managed to get some finance for a car. No real biggie as my work provide me a car allowance and as part of this the car has to be reliable, road worthy and in excellent condition.

Again we are able to meet these payments while meeting our agreed payments with the creditors.

However, DLC have taken exception to this and are now stating that court action will be taken unless we pay the amount in full. I phoned them and as expected they were rude so I told them I will only communicate in writing. I am happy to offer improved payments and will be sending them a Statement of Affairs to back this up.

My SOA is below

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household......... 2
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 1866
Partners monthly income after tax....... 770
Benefits................................ 179
Other income............................ 0
Total monthly income.................... 2815

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 210.7
Rent.................................... 420
Management charge (leasehold property).. 0
Council tax............................. 111
Electricity............................. 40
Gas..................................... 60
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 11
Mobile phone............................ 25
TV Licence.............................. 12
Satellite/Cable TV...................... 35
Internet Services....................... 10
Groceries etc. ......................... 400
Clothing................................ 50
Petrol/diesel........................... 150
Road tax................................ 18
Car Insurance........................... 85
Car maintenance (including MOT)......... 10
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 150
Other child related expenses............ 21
Medical (prescriptions, dentist etc).... 10
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 15
Life assurance ......................... 0
Other insurance......................... 112.5
Presents (birthday, christmas etc)...... 25
Haircuts................................ 35
Entertainment........................... 25
Holiday................................. 25
Emergency fund.......................... 15
Total monthly expenses.................. 2081.2


Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 5000
Other assets............................ 0
Total Assets............................ 5000


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 0........(0)........0
Hire Purchase (HP) debt ...... 8750.....(210.7)....0
Total secured & HP debts...... 8750......-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
DLC............................37493.....142.5.....0
Northern Rock..................25563.....249.4.....0
Wonga..........................868.......50........0
Vanquis........................250.......15........0
Wonga..........................767.91....255.9.....0
Total unsecured debts..........64941.91..712.8.....-


Monthly Budget Summary
Total monthly income.................... 2,815
Expenses (including HP & secured debts). 2,081.2
Available for debt repayments........... 733.8
Monthly UNsecured debt repayments....... 712.8
Amount left after debt repayments....... 21

Personal Balance Sheet Summary
Total assets (things you own)........... 5,000
Total HP & Secured debt................. -8,750
Total Unsecured debt.................... -64,941.91
Net Assets.............................. -68,691.91

Created using the SOA calculator at https://www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission, using other browser.

Come January next year we will have an additional £255 to pay to DLC making the payments to them £397 per month whilst meeting all of our other commitments.

This has been explained to DLC but as expected they are rude and not understanding. I am fully prepared to go to court but come January I will be meeting ALL my contracted payments and only need to agree a figure with DLC.

Any advice would be appreciated, maybe buying the car wasn't the best idea but i am contracted by work to have a vehicle or i lose the car allowance.

Hannah_10

So what exactly have DLC put in writing? Clearly they take exception to your buying a car, how have they expressed this?

boblardo

They just called me up and said we checked your credit file and notice you have additional finance commitments in the shape of HP Finance. I get £370 per month from work as a car allowance car repayments are £210.72.

They are still receiving the same amount in fact they receive it each month by way of bank transfer.

Nothing in writing they just said they will write to me and then i have 14 days to pay in full or further action will be taken.

Hannah_10

In which case you need to wait and see what they put in writing, I wouldn't be at all suprisied to find they put nothing in writing and that they are simply applying pressure verbally as they know they can say what they like on the phone (you can't prove it). Failing that, whatever you do recieve, you respond to with a new SOA, which will still show you are paying them what you can and that's that.

boblardo

I did tell them I didn't want to communicate over the phone as I don't have the luxury of recording the conversations. That said they did also ask me for my work number, mobile number and email address. Of course i declined

Thanks for your response