Debt management plans

wood1e

No Worries, thanks for the advice.

dancingfairy

Hi - the reason I mentioned about charging order was as follows.

You asked about whether your house you live in was safe and another property you own. Well a dmp is an informal agreement and many companies take a while to accept the dmp. Unfortunately they can sometimes take you to court and you may end up with a CCJ. By not making the payments set down when you signed up to the orignal agreement when you took the card or loan out they can put defaults on your credit file and take you to court.

Now the most likely thing if they take you to court (and there is no guarantee whether they will or won't or whether they just spout hot air at you) is that you will end up with a CCJ as you are not disputing that you owe the money. You will then have to ask the judge to set the rate you pay the debt back at the same amount you can afford as per your SOA( budget).

There is a chance (however small) that the companies may seek to obtain a charging order on your house- now this does not mean they can force you to sell but means that when/if you sell they are guranteed to get their money back. Now as you are not paying the mortgage but your partner is they may try to claim that you have contributed to the bills and therefore should be treated as having a claim to the mortgage. The chances of this are very very slim indeed and there is much more chance they will go after your rental property.

This is not to scare you but so you can realistically asses whether a dmp is for you or not. It sounds like you may not need one and can manage without it and all the additional complications that might arise. Speak to CCCS and see what they say and see if they can tell you what chances the creditors have of a CCJ etc and then make up your mind.
Best of Luck
df

dancingfairy

It sounds as though you have a cashflow issue more than a debt problem per se. I would definitely be in talks with the people who can help with the business side of things. It also might be an idea to see if you can restructure your debts - for example some forms of borrowing may be cheaper than others and some are more flexible to allow you to pay the minium when times are hard and pay more off when times are good.
Best of Luck
df

wood1e

Hi,

It is a cashflow/debt issue. My intention if DMP is the right solution is to keep paying the minimum monthly payments until DMP is in place. So CCJ should not take place.

So although I am not being hunted down for any non-payments at the moment, I thought it was prudent to start looking into a solution.

Loan consolidation is not really an issue as being self employed I am not going to meet any of the lenders criteria. EVen if my credit rating is ok.

The mortgage on my rental property is upto date. There is no equity. So a charge on that house is fine, as I have no intention of selling that until I am up for retirement, all things being equal. And the rent meets the mortgage amount at the moment.

As for the wifes property, I have not even told her I am going down this route...or should say I am looking at this as an option!!

Anyway, I will speak to CCCS again shortly and re-book the appointment, although as I ask earlier do you think it worth talking to Payplan as well? As they may be able to phone interview me earlier?

As I am presuming there is no difference in the two services?