Advice Please - DMP then Not and Now Maybe?!

katic22

Hi,

I have used this forum before and found it to be really helpful and I was wondering if I could get some more help please.

Last year my debts totalled £39,000. I had 12 creditors and spoke to the CCCS and was part of a debt management plan which was paying my creditors £221 a month.

I hoped that would be the beginning of things getting better but unfortunately it was not… The extent was unknown to my partner about the debt I had also racked up in his name. I had not included this on the initial DMP and was now finding I was still short every month. To cut a long story short CCCS cancelled (and rightfully so) my DMP.

I ended up having some sort of breakdown due to the stress and thanks to my amazing family things have started to get better. My sister has taken out a loan of £13,000 which has paid off my boyfriends debts. I am paying the monthly contractual payments of £210 although it is in my sister’s name.

This then left the £39,000 of debts in my name. I managed to negotiate settlement figures with 6 of my creditors which has reduced my debt to £11,000. However I am now paying my parents £200 per month back with the money they lent me for the settlement figures.

I was hoping to start back with CCCS with the remainder of the debt because although my total debt is considerably less I am committed to loans from family and can still nowhere near afford the required minimum payments.

When I completed their debt remedy online earlier it suggested a temporary payment arrangement. I was hoping for another DMP, can anybody help explain the difference please?? Also I would not want think CCCS or any of my creditors thinking that the £410 owed to family and friends is just an excuse in order . If asked I can prove that they obtained a loan and I am now paying it back to them.

Bankruptcy/IVA is not really an option and I would like to pay the creditors less than I paid them on the DMP as I have less money now than before. I am not sure if CCCS will help me now and if anybody wants a full breakdown so they can suggest token figures I am able to provide that.

I am sorry for the long winded email. I hope this all makes sense.

Thanks in advance!

Tixy

Hi

Usually a temporary payment arrangement would be either if you could only afford token payments rather than pro-rata payments, or possibly if something is likely to changes to improve your finances soon.

Have you completed a statement of affairs? I would do this first to try to work out what you should have left to pay towards your creditors. You might find because of the debts you owe to family that CCCS might not be prepared to run a DMP for you (as from the sound of it you need to give preferential treatment to your family creditors). This potentially might also cause an issue with trying to arrange repayments yourself.

So you pay sister £210 for a loan of £13k
you pay parents £200 for a loan of £11k
How much is left on your other debts (the ones that were not settled with the £11k)? and how much do you have left after basic living costs and these other 2 debt repayments to pay towards these debts (this is where the statement of affairs comes in to help you work out this figure). Do you have anything left at all (bearing in mind originally CCCS only calculated you had £221 spare and you are already paying out £410 on debt repayments).

[Deleted User]

It really would be a good idea to post an SOA as this will show a fuller picture of your finances. here's the link:
http://www.makesenseofcards.com/soacalc.html

This will show all of your income and expenditure and all of your debts - also ensure to include what the minimum payments should be and what percentage the interest being charged is. All this info will make it easier to advise.

As mentioned above a dmp may not be the best option as you then really need to treat all debts equally and as you are prioritising family debts then this will not be the case. Although it might be worth your while seeking advice on options available to you from one of the debt charities - National debtline, CCCS, CAB etc