F&Fs, CCjs and stopping DMPs

shopgirl771

sorry had no idea how to head this thread.

Ive just inherited some money which firstly i want to use to pay off my OHs debts (OH has been in a DMP for a few years with payplan) so we can clear up his credit file and then apply for a mortgage. Im highly unlikely to get a mortgage not only as im 2 yrs out of bankruptcy but as im on to low an income to do this alone.
Ive budgeted for upto 50% F&F and were in negotiations now but not getting anywhere quickly. National debtline have suggested that OH stops paying DMP as hes not even covering the interest and in 2 yrs hes debt has gone up £5K!!!
Im abit worried about this part as what happens if we cant negotiate for 50% on all or any of his debts and then he ends up with CCJs???
I guess this means we have two choices really. Either give the creditors the amounts they want or wait longer for a mortgage right???
Anyone have any pearls of wisdom?

Tixy

Hi

Have some of OHs creditors in the DMP not frozen interest? or all of them not? what have payplan said about this, have they given any likely reasoning, are his DMP payments fairly high (perhaps almost as high as the original payments? has OH tried writing to his creditors in the past asking them to reconsider and quoting the lending code about them helping debtors in financial difficulties?

In terms of negotiating F&Fs - how were you doing this? through payplan or yourselves? have you sent them letters or been doing it by phone or what?

Miss_Poohs

Not dis-similar to our predicament.

My hubs has been in a DMP (scottish DAS) where all interest and charges have been stopped and he's paid into it for nearly 4yrs.

The debt has reduced by £25000 to £48000 but like you shopgirl I have come into some money and I'm curious about offering F&F.

I'm guessing we'd have to offer through his debt mngt company Think money.

I'd be grateful of any advice.

DVardysShadow

Miss_Poohs wrote: »

The debt has reduced by £25000 to £48000 but like you shopgirl I have come into some money and I'm curious about offering F&F.

I'm guessing we'd have to offer through his debt mngt company Think money.

I'd be grateful of any advice.

Just my thought. Change to one of the free companies, not a paid company. Then do F&F's. It will take longer, but I don't like the thought of a paid company finding an inheritance is now available....

Miss_Poohs

Think money are a free company.

The DAS used to be serviced by pay plan but due to changes in the way DAS was administered Payplan lost out on the tender and my husbands DAS account was allocated to think money, who do exactly the same job as Payplan did.

shopgirl771

Tixy wrote: »

Hi

Have some of OHs creditors in the DMP not frozen interest? or all of them not? what have payplan said about this, have they given any likely reasoning, are his DMP payments fairly high (perhaps almost as high as the original payments? has OH tried writing to his creditors in the past asking them to reconsider and quoting the lending code about them helping debtors in financial difficulties?

In terms of negotiating F&Fs - how were you doing this? through payplan or yourselves? have you sent them letters or been doing it by phone or what?

hi tixy. in a nutshell payplan said they'd "manage" all his debts (it is a debt MANAGEMENT plan after all) and do things like negotiate freezing interest rates however its become apparent they havent managed to achieve this. when we asked them the other day who if any of his creditors had frozen interest they said they dont hold that info. we said but you have at least asked to have it frozen and they kind of skirted around the question.
in all fairness when i used payplan for my BR they were fab and i put OH on to them but in his case they have been atrocious and i dont believe for one second they have his interests at heart. hes been badly managed and mis informed the whole way.

but no weve never personally written to his creditors asking anything about freezing interest or asking for help. payplan insisted they'd handle this for him. his payments are currently £90pm on approx £20k debt (£12k recently got written off).

with F&F weve been doing it ourselves in writing. we did ask payplan if they could do this to which they originally said they dont help with F&Fs but later changed their story but we really dont trust them to do it tbh after all the trouble OHs had with them.
as i say were part way thru negotiating and i think with some creditors he will need to eventually get on the phone and negotiate person to person but well make sure we get anything in writing before sending any payments.

Tixy

It is usually worth writing to creditors yourself to ask them to reconsider freezing interest. Payplan and CCCS will ask inititally if creditors will agree to, but I believe they don't chase it up. So sometimes just writing yourself can work (template letters on national debtline).

I'd say if creditors had frozen interest they'd be more likely to accept F&Fs logically.

Whether its worth trying to get them to now, when you've already got as far as trying to do F&Fs I'm not sure, but that said its not a big effort to fire off a letter in the hope that they may reconsider.

And then maybe you could then try recommencing negotians for F&Fs in a month or 2?

Poosmate

I don't understand how your OH's debt can have increased by £5k when £12k has recently been written off? Who negotiated this? If Payplan then I think you're being a bit harsh claiming Payplan have treated your OH atrociously. If it was yourselves then I would dump Payplan, you sound like you are more than capable of holding your own and fighting your corner so ditch Payplan and free up their time and resources for someone who is not as strong or capable as you.

Do you receive statements from your OH's creditors or do they go straight to Payplan? If you receive them then they will show who has/hasn't frozen the interest.

Another thought I had, if your creditors have just written off £12k's worth of debt, I'm not so sure they'd be so accommodating to knock even more off for F&Fs. Put it this way, if you were selling something worth £100 for £45, would you accept a payment of £30 knowing you were already losing £55 on it?

Poo