DMP what happens?

soworriedandafraid

Sorry but I have tried searching and I'm not finding any answers:( I am thinking of a DMP for £40,000 of CC debts:eek: and was wondering what info they need when I contact a debt adviser and what effect it has on other people in My houses credit file? Also what effect does it have on mine and for how long? can't sleep at night cos so worried and feel life is just not worth living cos I got myself into this mess and can't get out!

RAS

start by reading this and speak to one of the debt charities listed http://www.moneysavingexpert.com/loans/debt-help-plan?utm_source=forum&utm_medium=clicks&utm_campaign=resourcebar#help

Unless you have joint accounts, other people in your house will not be affected.

Tixy

Hi and welcome

When you contact a debt advisor you generally need information relating to your income & expenditure and your debts (creditors names, balances, whether you are in any arrears etc). A good guide is that if you have completed the statement of affairs calculator here - http://www.makesenseofcards.com/soacalc.html
you should have 90% of the initial information they need.

IMPORTANT - Where to seek professional impartial advice about your debts.
Not sure if you have decided where to approach for help and advice with your debts (choose one of the charities) but if its CCCS they have an online calculator to complete which will give them much of the initial info they will need from you. https://debtremedy.cccs.co.uk/start.aspx

Going on a DMP will not impact on the credit files of other people who just live with you. if you are financially associated with someone on yoru credit files (joint mortgage, joint overdraft or loan etc) then you being on a DMP will likely impact on their ability to get credit (but wouldn't actually be visible on their credit reports).

If you enter a DMP it is likely that your creditors will issue defaults on your credit file (if you don't already have them) - a default will stay on your credit file for 6years from the date of issue. Some creditors might mark your credit file with arrangment to pay instead of a default.

soworriedandafraid

Thanks for all your help. If we have a joint bank account only with no depts on it will My partners credit file be safe?

Tixy

Does the joint bank account have an overdraft (or even a buffer zone)? You would need to check your credit files to see if you are shown as financially associated - if you are then it would be advisable to close the joint account and file notices of disassociation.

soworriedandafraid

Last questions I promise!! Can they make Me go bankrupt? Can they make Me sell My assets (eg Car).

Tixy

In theory anyone who you owe at least £750 to could petition for your bankruptcy. But the reality is that this won't happen (teeny teeny teeny tiny miniscule fraction of a chance only).

On a DMP it is still possible a creditor might decide they won't accept your DMP and take you to court to obtain a CCJ, this isn't common on a DMP but it does happen. If you are unlucky and you are one of the few this happens to you reply to the court and ask to pay in installements. The judge will only make a repayment order you can afford (its often the same or similar to that creditor's share of your DMP anyway - sometimes smaller). Providing you keep up with those payments then they cannot take further action.

If you didn't keep with repayments then they might try to go back to court and then instruct bailiffs - at that point your vehicle would be at risk.

None of these things are common once you are in a DMP but I've mentioned them to give you a full picture.

Edit - PS - if you own a £100k ferrari then your creditors might decide not to accept your DMP because they think you could sell the car and clear your debts. They couldn't make you sell it though.