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Boonsie

Ox1987 wrote: »

Did you get the CCJ before or after the DMP had started

After the DMP, why?

Ox1987

Just wondered is their a chance you can get a CCJ even if you are on a SC DMP and does it form part of the same DMP did you have to increase the payment who did it

Boonsie

Ox1987 wrote: »

Just wondered is their a chance you can get a CCJ even if you are on a SC DMP and does it form part of the same DMP did you have to increase the payment who did it

Step Change helped with a letter and I provided the court with my SC Budget, so the court accepted the same payment I was paying on my DMP.

Ox1987

Who placed it on you, as that is worse that the DMP isnt it, things about DMP worrying me

StepChange_James

Boonsie wrote: »

I am about 4 years into my DMP with StepChange, I am still a long way off from paying the debt off, 55,000 approx still to pay, I have about 12 creditors and the biggest is a CCJ (never missed the CCJ), I am now in a 90 day consultation period and I will be made redundant at the end of June.

My wife is just about to have an operation which means her salary will drop from 250 to 85 a week for at least 6 weeks.

I still have a large mortgage and a secured loan against the house and the house is in negative equity if you count the secured loan.

I will need my redundancy payment (25,000) to live off until I find a job (if I find a job).

Can anyone please give me advice on what to do next?

Thanks

Hi Boonsie,

I'm sorry to hear about you redundancy. It sounds like things have been going pretty well with your DMP to now, it's a real shame that these things come out of the blue.

I'd suggest giving us a call and asking to review your budget. We can at least change your wife's income to reflect her reduced income following her operation. We'll also be able to talk about options once your 90 period expires.

The CCJ payment is set by the court, so that's the most important thing to pay in full. If that payment is too much we can talk you through how you can apply to the court to get the instalment reduced.

It's hard to say if your DMP will still be your best option but we'll be able to support you and talk you through all the possible strategies.

Looking on the bright side, if you're back in work relatively quickly then you may be able to use your redundancy money to negotiate full and final settlements. This is where you make a one off lump sum payment to clear a debt for less than the full amount.

You can read more about full and final settlements here: http://www.stepchange.org/Debtinformationandadvice/Debtsolutions/Settlementoffers.aspx. We can also discuss this with you if you give us a call.

Good luck with everything, it sounds like a really tough time at the moment. Keep in touch with us and we'll do what we can to help you through.

Kind regards

James

StepChange_James

Ox1987 wrote: »

Who placed it on you, as that is worse that the DMP isnt it, things about DMP worrying me

Hi Ox,

If you get a CCJ the courts write to you and you have to return a form with a statement of affairs and an offer of payment. It's usually possible to get the payment on a CCJ to a similar amount to the amount that debt is getting through the DMP.

So if you're making regular payments of what you can afford via a DMP then there's not much incentive for creditors to go for a CCJ. It doesn't mean that you can't get them but if you stick to your payments then there your creditors should see that a CCJ won't get them any extra money.

You advice booklet will have some information about the debt collection process and court procedure if you'd like to read more.

James

BrassicallyBella

Hello all!

I'm a long time lurker here. After 2 hellish years spiralling into ever increasing payday loans we have finally decided enough is enough. Yesterday we contacted stepchange and have received our DMP pack today. Last night my husband & I slept properly for the first time in over a month and woke without a complete sense of misery this morning We have about £12,500 of debt, all unsecured. The road to debt free may be a long one but knowing that every month we are paying off rather than paying out is a huge relief.

I have a couple of very quick questions. Up until this month I was working for my parents' business. I was paid through PAYE but due to work becoming scarce I am no longer required. We have therefore declared my income as nil, but obviously my bank statements etc still show my wages. Would a letter from my employer stating my contract will end on x date be suitable proof of this?

Also, what do we do about payments that are due at the end of this month? Will everything be set up in time or should we contact our creditors? Will payday loan companies try to take payments anyway and what can we do to prevent this? I don't really want to call them as they can be so unpleasant to deal with over the phone.

Lastly, my husband has no debts with his bank but I do. We have an appointment on Monday to get me added to his account so that I can close mine as suggested by MSE. Should we be opening up a completely new account or will his account with new cards for us both be OK.

Sorry for all the questions, after feeling so positive all day I'm having a sudden blip!

TIMELORD_3

I am in a lot of trouble and i dont know what to do
I own a flat which i have rented out but is empty now i have missed the last 5 mortgage payments and the last 5 secured loan payments a total of 3.5k in arrears i am about to lose the flat
I also have other debts unsecured of 45k credit cards loans overdraft
I was on a debt management plan for 10 months at 400 a month but i have missed the last 5 payments as well and i am getting a lot of letters and phone
calls i feel so depressed and i dont know what to do
I stay in scotland my flat is worth 100k and my mortgage and secured loan balance is 40k

StepChange_James

BrassicallyBella wrote: »

Hello all!

I'm a long time lurker here. After 2 hellish years spiralling into ever increasing payday loans we have finally decided enough is enough. Yesterday we contacted stepchange and have received our DMP pack today. Last night my husband & I slept properly for the first time in over a month and woke without a complete sense of misery this morning We have about £12,500 of debt, all unsecured. The road to debt free may be a long one but knowing that every month we are paying off rather than paying out is a huge relief.

I have a couple of very quick questions. Up until this month I was working for my parents' business. I was paid through PAYE but due to work becoming scarce I am no longer required. We have therefore declared my income as nil, but obviously my bank statements etc still show my wages. Would a letter from my employer stating my contract will end on x date be suitable proof of this?

Also, what do we do about payments that are due at the end of this month? Will everything be set up in time or should we contact our creditors? Will payday loan companies try to take payments anyway and what can we do to prevent this? I don't really want to call them as they can be so unpleasant to deal with over the phone.

Lastly, my husband has no debts with his bank but I do. We have an appointment on Monday to get me added to his account so that I can close mine as suggested by MSE. Should we be opening up a completely new account or will his account with new cards for us both be OK.

Sorry for all the questions, after feeling so positive all day I'm having a sudden blip!

Hi Bella,

Thanks for getting in touch, I'm really glad you've been feeling better about things since speaking to us. It's natural to be uncertain, starting a DMP is a big change but I think you'll find it a change for the better.

If you've got something that confirms you don't work for your parents business anymore then put a photocopy in with the paperwork you return. If not then a brief note explaining the situation should be enough.

I don't know the start date of your plan, but our advice generally is to make a gesture payment to your creditors in the lead up to starting a DMP. So for most debts this means cancelling direct debits and making a one-off payment of whatever you can afford (even if it's only a small amount) instead of making the full payment.

The payday loans will probably try to take the full amounts, usually through your debit card. If you follow the guidance in this blogpost it should sort them out: http://moneyaware.co.uk/2013/01/payday-loan-debt-help-what-to-do-if-you-cant-afford-the-payment/. It also links to a template letter you can use - so no need to call them up.

As long as neither of you have debts with the bank your husband uses then it should be fine. This change is to make sure your income can't be snaffled up by your creditors which sometimes happens if you owe money to your own bank.

I hope this makes you feel a bit better.

Cheers

James

StepChange_James

TIMELORD wrote: »

I am in a lot of trouble and i dont know what to do
I own a flat which i have rented out but is empty now i have missed the last 5 mortgage payments and the last 5 secured loan payments a total of 3.5k in arrears i am about to lose the flat
I also have other debts unsecured of 45k credit cards loans overdraft
I was on a debt management plan for 10 months at 400 a month but i have missed the last 5 payments as well and i am getting a lot of letters and phone
calls i feel so depressed and i dont know what to do
I stay in scotland my flat is worth 100k and my mortgage and secured loan balance is 40k

Hi Timelord,

It sounds like things are pretty stressful at the moment but at the same time you might have more options than you think.

I'd suggest getting in touch with us as soon as possible and we can look at your finances and recommend a course of action. There's always something you can do.

You can get advice from us using our online tool Debt Remedy (http://www.stepchange.org/msehelp) or by giving us a call (http://www.stepchange.org/Contactus.aspx).

Either way we'll help you plan an income and expenditure budget, work out which bills are most important and which ones can be reduced and then recommend how best to move forward.

Hope this helps.

James