Panic about DMP new creditor - please help

woody24

Iv been on a DMP since January and all seems to be going well. Iv got companies on it barclays for a loan, barclaycard, capital one and a few mail order catalogues. Im paying what I owe and rightly so but just at a more management pace . All my creditors have been very good and it was a very simple process for me and I know I was very lucky.

However, I have just managed to accrue another £3,500 debt which was because a job I left 2 years ago I had to hand back a lease car for leaving the job early and was left with a hefty fine for doing so. I have irresponsible turned my back on it thinking that I wouldnt be liable for it if they havent contacted me for 18 months - low and behold Iv been caught up with and turns out I am liable.

However, the debt has been passed from the NHS trust i used to work for to TNC collections who are very cut throat. They left me a message on my mobile saying something to the effect "you have until 5.10pm today to call us" and i completely panicked and called them back. I explained I was on a debt management plan and that I would contact CCCS to include their debt. He wasnt happy with that and I asked him to email me the details so I could tell CCCS.

CCCS said Im due a budget review as Im just about to go down to half pay because Im on maternity leave and that I wont be able to include their payments until December and that I should make £5 token payments. Iv done that and sent a letter to them explaining - however they are now threating litigation action and a CCJ if I dont pay the full £3,500 within 7 days.

Im now terrified of this CCJ and having to go to court or even worse the baliffs turning up on my door - does anyone have any advice on how to deal with this. Im not sleepiong at night worrying they will knock on the door or ask me to go to court.

Sorry for the panic, I just know where to turn at the moment

fermi

Do you have a house with equity?

If not, then a CCJ is a pretty pointless threat from the DCA.

If they were daft enough to try for one then the most likely outcome would be the court ordering payments in line with whatever those under your DMP review turn out to be.

Just keep paying what CCCS recommends and try to not be intimated by silly threats.

Have you spoken to CCCS regards the CCJ threat? They may have an example letter to send?

I think there is one on the National Debtline site? Basically says that you are making a fair offer, will review the payments shortly, and if they go to court you will ask the court to set instalments at a level in line with your other creditors.

dancingfairy

Firstly I'd check the terms of the original paperwork to check the extent of your liability - sometimes you can hand cars back if you have paid more than 2/3(?) of the payments - it does depend on what type of finance you had.
Secondly you need to include ALL your debts in the dmp - whether you forgot about it or whether it was a deliberate act you need to make sure that absolutely everything you owe is now included or the dmp will collapse and you will be in more of a mess.
Thirdly if you don't have the 3,500 then you don't have it. It's quite simple, they will have to go into your dmp like everyone else. They may shout and scream and threaten blue murder but frankly that is what debt collectors tend to do. They want their money and if all this carry on produces the goods then that's what they will do. They can't send a bailiff until/unless they have a CCJ and they don't have one yet from what you've said. They are most unlikely to send anyone around at this point anyway (especially when scary words are soooo much more effective, and cheaper ) and if they do tell them to go away or you will call the police. They can take you to court if they wish, but then CCCS should have told you this about any debt on your dmp - how many of them have actually done this?
Try not to worry at this stage. Add them to the dmp and continute as normal. Just don't speak to them on the phone as it gives them the opportunity to terrify you.
Best of Luck
df

DizzyDizzy

woody24 wrote: »

CCCS said Im due a budget review as Im just about to go down to half pay because Im on maternity leave and that I wont be able to include their payments until December and that I should make £5 token payments. Iv done that and sent a letter to them explaining - however they are now threating litigation action and a CCJ if I dont pay the full £3,500 within 7 days.

Do exactly what CCCS have advised, make the token payments until you are back to work after your maternity leave and all your payments go back to normal.

I started my DMP on materniry leave and made £1 token payments to our creditors for 3 months whilst our DMP was being sorted out. The creditors may scream and shout 'till their blue in the face but if you haven't got it, you haven't got it. You need to make sure you have enough to feed yourself and your new baby for a start!

Even if they send you to court, which is what Santander did to us, the judge just looked at our budget which we had agreed with CCCS and made a determination that we had to just pay a small amount each month, which fitted in with our budget. (He got quite cross with Santander actually for wasting the courts time as a dmp was already being set up!) Yes we ended up with a ccj but it doesn't last for ever!