Quick DMP question?

Donedoingdebt

safeashouses wrote:

Agh I am sorry, I am so confused! So if we do a DMP that pays off over 8 years... how long after the 8 years will our credit rating be poor? Another 6 years?

No, it shouldn't be another 6 years. Any defaults or CCJs that you're receiving at the moment will all have disappeared 6 years after the date they were applied. If you pay all your accounts in full, then these will remain on your file for 6 years after final payment. It will only show the previous 36 months of account activity.As far as I'm aware, if you have kept to your agreed payments with your creditor/DMC, then these will show up as normal payments. Therefore, in 8 years time, your file should show all accounts settled as normal. I had 7 defaulted accounts in 2000 & my file only lists the original lenders names, (Loyds, MBNA Capital Bank etc). Not once does it mention any DMCs names, so no suspicion arises there.

CLAPTON

lennymfo wrote:

Are you sure that you default with all your creditors? Reason I ask is that I have 13 in total and to date I have only received 2 default notices, both from Egg. All other correspondence confirms that I am on an agreed payment plan and should stick to it??????

Lenny

good point,
one of the great difficulties of writing virtually anything about DMP/IVA/bankruptcies is that if you're not careful the answer to everything is ' it depends' .
by that i mean everything depends upon your creditors or your IP or your OR because the body of actual law is very limited.
In the case of defaults the situation is that its up to your crditors to decide to do this. Maybe they will, maybe they wont. If they dont now they may well do it in six months time. In any event once you have 1 or 2 defaults, there is really very little difference in having half a dozen more.
In practice most get defaulted eventually but you're right, there is no guarentee, in the same way that many creditors freeze interest and charges on a DMP but they don't have too and they can change their mind at any time.


best of luck with the car by the way.

safeashouses

Donedoingdebt wrote:

No, it shouldn't be another 6 years. Any defaults or CCJs that you're receiving at the moment will all have disappeared 6 years after the date they were applied. If you pay all your accounts in full, then these will remain on your file for 6 years after final payment. It will only show the previous 36 months of account activity.As far as I'm aware, if you have kept to your agreed payments with your creditor/DMC, then these will show up as normal payments. Therefore, in 8 years time, your file should show all accounts settled as normal. I had 7 defaulted accounts in 2000 & my file only lists the original lenders names, (Loyds, MBNA Capital Bank etc). Not once does it mention any DMCs names, so no suspicion arises there.

Ahhhhhh ok thta is great. We have no CCJ's yet although we have defaulted on some deals but always paid some if that makes sense. If we enter the DMP are we likely to THEN get CCJ's implemented?

safeashouses

CLAPTON wrote:

good point,
one of the great difficulties of writing virtually anything about DMP/IVA/bankruptcies is that if you're not careful the answer to everything is ' it depends' .
by that i mean everything depends upon your creditors or your IP or your OR because the body of actual law is very limited.
In the case of defaults the situation is that its up to your crditors to decide to do this. Maybe they will, maybe they wont. If they dont now they may well do it in six months time. In any event once you have 1 or 2 defaults, there is really very little difference in having half a dozen more.
In practice most get defaulted eventually but you're right, there is no guarentee, in the same way that many creditors freeze interest and charges on a DMP but they don't have too and they can change their mind at any time.


best of luck with the car by the way.

Soooooo when we enter the DMP we will probably be classed as defaulting on all our agreements right? And even though they might agree to the DMP they can still change their mind at some point yes? And does anyone know if we will get a frequent breakdown of who has been paid what? And if we want to pay more off would that be shared between our creditors or could it, for example, just pay one creditor off in full?

And any guesses when or if I will ever shut up about this? :rotfl:

System

CLAPTON wrote:

good point,
one of the great difficulties of writing virtually anything about DMP/IVA/bankruptcies is that if you're not careful the answer to everything is ' it depends' .
by that i mean everything depends upon your creditors or your IP or your OR because the body of actual law is very limited.
In the case of defaults the situation is that its up to your crditors to decide to do this. Maybe they will, maybe they wont. If they dont now they may well do it in six months time. In any event once you have 1 or 2 defaults, there is really very little difference in having half a dozen more.
In practice most get defaulted eventually but you're right, there is no guarentee, in the same way that many creditors freeze interest and charges on a DMP but they don't have too and they can change their mind at any time.


best of luck with the car by the way.

Thanks CLAPTON, on the button as always! I am umming and arring about this company mind. I dont know what to do!!

System

safeashouses wrote:

Phew thanks! I'm such a worrier, I haven't slept properly for 2 years so I don't know whether I am coming or going!

Thats ok then, I can keep the overdraft, put any overtime in another account, and hopefully pay off the debt in less that the predicted 8 years.

I hope.

Rest assured, you will sleep more soundly now that its out in the open and you have taken charge. I have aged dramatically over the last couple of years - I look tired! One slight cautionary note though - be careful in which account that you accrue your overtime and bonuses - if it is an account that has an association with one of your creditors Barclaycard/Barclays Bank for example the creditor MAY, I say again, MAY be able to seize that money. Check that the bank you will use for this has no associations wth your creditors. If you are unsure, read this thread: http://forums.moneysavingexpert.com/showthread.html?t=180121

Lenny

System

safeashouses wrote:

Soooooo when we enter the DMP we will probably be classed as defaulting on all our agreements right? And even though they might agree to the DMP they can still change their mind at some point yes? And does anyone know if we will get a frequent breakdown of who has been paid what? And if we want to pay more off would that be shared between our creditors or could it, for example, just pay one creditor off in full?

And any guesses when or if I will ever shut up about this? :rotfl:

It would be shared between your creditors proportionately as per your DMP %ages. You should have an online accout with CCCS or Payplan where you can view everything. Payplan's is called 'Justabank'

Lenny

safeashouses

Thanks Lenny - that is great