Leaving CCCS to manage my own DMP so I can obtain settlement figures

CBI

sickasachip13 wrote: »

Also, for every creditor that accepts, the monthly payment to the others would go up

Yeah that's what I can't let happen.

ie

Debt 1 - Outstanding 2000 - Monthly payment 200
Debt 2 - Outstanding 2000 - Monthly payment 200
Debt 3 - Ouststanding 1000 - Monthly payment 100

If Debt 2 settles for 800, then the above must become

Debt 1 - Outstanding 2000 - Monthly payment 200
Relative - Outstanding 800 - Monthly payment 200
Debt 3 - Ouststanding 1000 - Monthly payment 100

Which from my conversation with the CCCS can't happen, as they'd do another SOA to reduce my payment from 500 to 300, that would get sent to Debt 1 & 3 who could potentially get all !!!!y that a new 'creditor' has entered the scene when a condition of a DMP = no more borrowing.

sickasachip13

I see the problem. And you couldn't 'create' enough space in your new SOA to make this work?

CBI

I guess it's possible, but how many times could my utilities bills increase over the course of the 2/3 months it might take to organise settlements :rotfl:

I think it'll just be easier to either make a break from the CCCS, or have a word with the relative and ask to borrow the money then start repayment 2/3 months later.

DVardysShadow

CBI wrote: »

Which from my conversation with the CCCS can't happen, as they'd do another SOA to reduce my payment from 500 to 300, that would get sent to Debt 1 & 3 who could potentially get all !!!!y that a new 'creditor' has entered the scene when a condition of a DMP = no more borrowing.

OK, I think that this is an issue of presentation. As I see it, this is NOT new borrowing, it is transfer of existing debt to more favourable terms. For the remaining creditors, although it means that another debt is paid off more quickly, the paid off creditor has taken a loss. And also once the transferred credit is paid off there should be more remaining to pay off the outstanding credit.

Thinking on this some more, I would say that a possible way forward is for your relative to buy the debt for a settlement figure and theneither become a creditor under the DMP or take the debt out of the DMP and settle direct, keeping the remaining creditors' payments exactly the same.

sickasachip13

Or, could it be a family debt that was historic and has now been 'called in' by the relative?

SAAC

DVardysShadow

sickasachip13 wrote: »

Or, could it be a family debt that was historic and has now been 'called in' by the relative?

SAAC

I don't think that really helps. Such debt should have been declared at the outset. I dare say that this may already be well known as a ruse to gain more wriggle room on a DMP without paying and F&F's.

sickasachip13

Hmm, I told CCCS about a debt to family but said that it wasn't being requested back yet, so it sits there in my notes, but doesn't impact upon anything. I guess I did declare it from the beginning though.

DVardysShadow

sickasachip13 wrote: »

Hmm, I told CCCS about a debt to family but said that it wasn't being requested back yet, so it sits there in my notes, but doesn't impact upon anything. I guess I did declare it from the beginning though.

That is the key point! I think that when you start a DMP, there is an implied promise that there will be no surprises later. It is bad having no credit, but it is far worse to compound that by throwing away your credibility.

DS4215

Is it any different to a creditor passing a debt to a DCA? - They can sell your debts on and the payments go to another party and you are just doing the same thing.

Are you hoping to settle all your debts and pay the lot back to your relative or just some of the debts?

CBI

Relative has agreed to lend me as much as I need to settle all debts, on the provision I get the F&F as low as possible so I can pay it all off sooner so I can start building deposit towards my own house (currently living with my granddad)