paying extra to one creditor

The_Boss

michael1983l wrote: »

Paying them pro rata means that you pay a percentage of your available funds in proportion to that of the total percentage of debt when compared to the total outstanding debt.

i.e.

If you owe

Creditor 1 £7,000
Creditor 2 £2,000
Creditor 3 £1,000

And have £100/month available you will pay

Creditor 1 £70/month
Creditor 2 £20/month
Creditor 3 £10/month

I know. That is basic economics. But see my previous post.

fermi

They could go for a CCJ/CO if they want, but there is no guarantee that the court would order you to pay any more than you currently do with the DMP.

Creditors will try heavy handed tactics like this, but unless a court orders it, then you just pay what is due under the DMP.

bugaluggs78

I have already had their solicitors letter stating their intentions to obtain a ccj if payment isn't made.

I know the court will probably be happy with the payments i'm making but they will still grant a ccj and charging order.

I can't win either way.

fermi

A charging order isn't really a huge deal. They say they could apply for an order of sale, but it is as rare as hen's teeth for a court to agree to one.

The CO would just sit there until the debt is paid off via the DMP.

The_Boss

fermi wrote: »

They could go for a CCJ/CO if they want, but there is no guarantee that the court would order you to pay any more than you currently do with the DMP.

Creditors will try heavy handed tactics like this, but unless a court orders it, then you just pay what is due under the DMP.

That's something that makes me wonder. Surely if all parties agree to a plan then that cannot be reviewed unless circumstances change. And why on Earth are the management company not managing this? What are they being paid for?

michael1983l

bugaluggs78 wrote: »

I have already had their solicitors letter stating their intentions to obtain a ccj if payment isn't made.

I know the court will probably be happy with the payments i'm making but they will still grant a ccj and charging order.

I can't win either way.

I don't see that you have any other option other than to continue paying them through the DMP and facing court if they do go for a CCJ. You will cause more problems if you start paying a creditor out of pro rata than you will by getting a CCJ.

Maybe write them a polite letter with a copy of your SOA and the breakdown of your payments and explain that given the information you have provided you are paying them the maximum amount of money that you could fairly distribute to them and say that if they require more money you could not agree to this and that they would have to apply for a CCJ if they required more.

You are being logical and calling their bluff, if your SOA is correct then I do not see why a judge would rule that you need to give them more money, they know this and they also know that they need to pay to go to court. Basically call their bluff.

bugaluggs78

if they get a charging order, would that not just encourage the other creditors to do the same?

my house is in negative equity by the way.

michael1983l

bugaluggs78 wrote: »

if they get a charging order, would that not just encourage the other creditors to do the same?

my house is in negative equity by the way.

They would not get a charging order because you are not refusing to pay. You certainly would encourage other creditors to use these tactics on you should you start paying them more. They regularly review your credit file to check on stuff like this.

rizla_king

bugaluggs78 wrote: »

if they get a charging order, would that not just encourage the other creditors to do the same?

my house is in negative equity by the way.

Charging order would be a pointless threat in that case.