paying off a DMP - the best choice?

living_to_regret_it

hi there

I am currently in a DMP with debts of 50k.

Due to my marriage break up (bcus of my debts) i moved out of the house i co-own with my husband and it is now in the process of being sold. I calculate i will receive approx 40-40k from the sale.

when i signed up for the DMP, i also owed my father approx 20k which i didnt mention as he was willing to let it be and didnt want to be part of the DMP. However, now my house is being sold, he wants me to repay my debt to him from the proceeds.

would i be breaking any laws by paying my father back rather than my debtors on my DMP?

any advice would be greatly appreciated, thankyou

Tixy

No

The DMP is not a legal agreement just an informal agreement so you won't be breaking any laws.

living_to_regret_it

what would be my best choice, carry on with the dmp, pay off the debts with the remainder from the sale of house or enter an IVA?

(from exp does anyone know if my debtors would take offence that i havent made settlement with them first and not agree to another years agreement?)

Incidentally, i would like to eventually buy another home through a mortgate, would that be at all possible after the mess i have got myself into?



thanx again for any advice

Tixy

Depends

How long have you been in your DMP? Who is the DMP with?
How much longer is it predicted to last (based on your current repayments)?

DizzyDizzy

[QUOTE=living to regret it;46372769
(from exp does anyone know if my debtors would take offence that i havent made settlement with them first and not agree to another years agreement?)

[/QUOTE]

If they are on a dmp they are unsecured debts, so they would not informed when the house sales goes through. So what I'm thinking is that they won't have to know how much you have got from the house, just ring CCCS and tel them I've got X amount to put into the dmp, can you distribute it?

living_to_regret_it

DizzyDizzy wrote: »

If they are on a dmp they are unsecured debts, so they would not informed when the house sales goes through. So what I'm thinking is that they won't have to know how much you have got from the house, just ring CCCS and tel them I've got X amount to put into the dmp, can you distribute it?

thankyou for this

living_to_regret_it

Tixy wrote: »

Depends

How long have you been in your DMP? Who is the DMP with?
How much longer is it predicted to last (based on your current repayments)?

it is with several companies through payplan. on my current repayments it would take approx 40 years to clear

Tixy

Ah right 40years is a long time.

If your DMP is predicted to take 40years then I would imagine that you wouldn't get an IVA accepted by your creditors (I think they'd refuse because the predicted total repayment percentage would be too low).

If you are left with £20k after paying off father then you could try to settle some of your debts via reduced full & final settlements.
Whether they'll accept and at what % would depend on how long you have been on your DMP, whether the debts are still with the original creditor, with an inhouse debt collection agency or if they have been sold to a third party debt collection agency. For all to be settled they'd need to be prepared to accept 40% settlements.
If you couldn't settle them all with the £20k you should be able to put a big inroad in to your debts.

And then you could think whether you still needed a DMP or whether your monthly repayments would cover the normal minimum payments on the debts.

living_to_regret_it

Tixy wrote: »

Ah right 40years is a long time.

If your DMP is predicted to take 40years then I would imagine that you wouldn't get an IVA accepted by your creditors (I think they'd refuse because the predicted total repayment percentage would be too low).

If you are left with £20k after paying off father then you could try to settle some of your debts via reduced full & final settlements.
Whether they'll accept and at what % would depend on how long you have been on your DMP, whether the debts are still with the original creditor, with an inhouse debt collection agency or if they have been sold to a third party debt collection agency. For all to be settled they'd need to be prepared to accept 40% settlements.
If you couldn't settle them all with the £20k you should be able to put a big inroad in to your debts.

And then you could think whether you still needed a DMP or whether your monthly repayments would cover the normal minimum payments on the debts.

thankyou for the advice

Tixy

If you do consider offering full & finals - this is a useful factsheet http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=24_full_and_final_settlement_offers

living_to_regret_it

Tixy wrote: »

If you do consider offering full & finals - this is a useful factsheet

thanx Tixy,

would there be benefits in doing it myself rather than payplan on my behalf?