What comes next?

in-debt

I am presently on a DMP with Payplan and have just done a new financial statement with Payplan. They have now wrote out to all my creditors and they are not happy as the amount has been reduced from £500 by £170 a month to £330. I have received correspondance from some of the creditors who will have accepted the new payments and some who have not. One of my creditors is passing it through to court. Can anyone inform me what happens next?

I would appreciate any help on this matter.

in-debt

Can anyone help me please

danielleindebt

im unsure my self but im sure someone will be able to help.

opalfruits_2

Your creditors have 3 choices - they can accept the reduced payments, pass the debt on to a different company (normally a debt collection agency), or lastly, try and obtain a CCJ against you.

Anything that says court action, legal proceedings, litigation - it all means a CCJ. With a CCJ you don't actually have to attend court as a rule, you just fill a form in which the court sends out to you. When you send this back the creditor then decides if they want to accept your offer. If they're not happy with it the court will decide what a reasonable offer that you can afford should be. The court is there to be an independent mediator, not to punish you.

As a general rule, creditors would rather leave a CCJ as a last resort because if Payplan have worked out your budget correctly, the amount that you are paying on your DMP will be the same as a reasonable offer on a CCJ - which means that your creditors won't get any more out of you by taking you to court. That's why they send so many horrible letters out - it's easier to get their money back by scaring you to death than actually going down the legal route.

Stress_Head_6

We are in the same position and Alliance and Leicester are taking my partner to court tomorrow as they are unhappy with the amount they are getting on the DMP

I am scared to bits and just want Friday to be here! I dont know how I am going to keep it together tomorrow morning trying to get the kids to school and worrying what my partner is going through.

xx

in-debt

Many thanks for informing me about this.