Is a DMP still possible if debts with debt collection agencies?

JenJen70

I am currently trying to figure out the best way to deal with my debt....bankruptcy, IVA or DMP are all options I am currently considering.

Many months ago I was in the process of setting up an IVA with my husband when our world was turned upside down, everything debt related was simply forgotten about whislt we lived through a very traumatic time which has torn our family of 7 apart.

I am now seperated from DH and living with my 2 youngest children, my creditors have not received a payment for coming up to a year & all debts are now with various debt collection agencies...infact they've been passed on from one to another over the months

I am now in a position to start dealing with the debt but need to know if I decide on a DMP will a debt collection agency agree to this?

fermi

Many DCAs will.

Sometimes they can actually be more accommodating than original creditors, as they often have greater discretion on stopping interest/charges and making settlements.

An odd few will just not cooperate whatever you do, but that is true of the OCs as well, so no bigger deal. Often the debt is sold on again to one that might cooperate.

So all in all, not a huge concern that DCAs now have them, and in sometimes it can be better.

JenJen70

Thanks for your quick reply........if a DCA says no would I just go ahead with the DMP anyway? After all surely they'd be happier receiving something as opposed to the nothing that they have been getting?

eyeopener2

Some may say no just to be plain awkward but if you are paying them a regular amount via CCCS/Payplan/CAP they will come onboard. Most will be just fine.

antonic

I agree, I have a DMP with Payplan (14 months left out of 84 to go) and Cahoot & CapitalOne froze interest from the start , so did Bank of Scotland for 2 years then restarted it, and have frozen it again for the last 3 years.
Abbey National also froze the interest on my O/D.

So I reckon they will because they recognize that its far easier to get money out of people when they are treated decently.

eyeopener2 wrote: »

Some may say no just to be plain awkward but if you are paying them a regular amount via CCCS/Payplan/CAP they will come onboard. Most will be just fine.