DMP Without partner knowing??...

sickasachip13

Hi,

Bert, going on a DMP will trash your credit rating, for six years after the defaults are placed on it. The defaults are put on by creditors who are not getting their full contractual payments from the debtor. When they are put on is up to the creditors and some might not bother.

On the loan idea, most people here, and the debt charities would not recommend further borrowing to address debt. Frequently the patterns of debting are not changed and people end up simply with more debt than they first had a problem with.

Why not post up a Statement of Affairs so people can advise with the details in front of them?

SAAC

bert666

Again, Thankyou very much everyone!! I'm going to try and sit down with the hubby this weekend and see if we can do a SOA so at least he/ we are both fully aware of the issue (for 'issue' read 'problem'!!) and then we can decide where we go from there.

Okay, now once again I know I sound thick BUT... how then if a DMP trashes your credit rating, is it any different to an IVA?! I kind of thought (in my pea-brain) that an IVA was some big scary thing that would get you out of debt but ruin your credit rating for a few years in the process and that a DMP was a slightly less scary thing that would also help clear your debt but do it in a less aggressive way and by not upsetting your credit rating- am I completely way off track with this way of thinking?!! ;0)

sickasachip13

From my understanding a DMP is an informal agreemnet, which you can pull out of at any time, whereas an IVA is a far more formalised process. Also, the IVA is basically a form of insolvency (bankruptcy) and will be recorded as such on your credit records. You should find factsheets on the National Debtline or CCCS website that might help.

sickasachip13

In fact, here we go:

http://moneyaware.co.uk/2011/07/12-differences-between-an-iva-and-a-dmp/

RAS

In IVA is an act of insolvency that is recorded permanently in the Insolvency Register (public document) and which has to be declared for the rest of your life if you are ever asked (and you will be when applying for a mortgage etc). You will also have to release your portion of any equity in the house, usually in year 4 of the IVA , or pay an extra year.

The up-side is that your creditors may agree to a reduce total payment, although if you only owe £10 that is very unlikely. Quite simply with IVA fees being around £6K, there would not be enough to pay the creditors enough to get their agreement. That is why it is often said that the minimum for an IVA is about £15K. The downside is that if you come into some money, you have to pay back the full amount and the £6k fees on top.

A DMP expects you to pay back the whole amount but it is an informal arrangement so once the defaults go on, your credit record should start to clear up, although the odd !!!!!! might go for a CCJ just before the 6 year deadline.