broken the terms of debt management plan

tony007_2

I have broken the terms of my debt managment plan, I have been in the plan about 3 years now. What happened was I thought I had declared everything to them but last year I discovered that I had an account with a credit card company where I had nil debt so I applied for a new card which I got and have used it for carpets and a new kitchen and a bit of double glazing, I am now £2800 in debt to them I have made a direct debit to pay this off at £100 a month which I have been paying, But my debt managment company have started an annual review of my finances where I have to provide my bank account details. I think they are going to find out. What will they do? Can I apply to go bankrupt although I would like to stay on a debt managment plan.

Sazzie23

tony007 wrote: »

I have broken the terms of my debt managment plan, I have been in the plan about 3 years now. What happened was I thought I had declared everything to them but last year I discovered that I had an account with a credit card company where I had nil debt so I applied for a new card which I got and have used it for carpets and a new kitchen and a bit of double glazing, I am now £2800 in debt to them I have made a direct debit to pay this off at £100 a month which I have been paying, But my debt managment company have started an annual review of my finances where I have to provide my bank account details. I think they are going to find out. What will they do? Can I apply to go bankrupt although I would like to stay on a debt managment plan.

Perhaps bankrupcy at this stage is a very dramatic response? and its possibly not in your best interest to hear this, but I don't know if they actually do a credit check, I missed out one of my loans by accident when I started a DMP and it has never been raised, I continue to make the repayments (obviously I am still paying interest buts it not a huge amount). What the may do I suppose if they are looking at your bank account is consider your income and outgoings and decide that £100 you thought you could pay to this new CC should be being repaid towards your DMP. However I don't know if this will happen. Are you fee paying dmp or SC/PP?

If fee paying, I'd be tempted to pull out anyway and consider SC or self-managed in which case you probably negotiate round this?
If its SC they will likely decide you have broken T&C.

And this is really rude, so sorry, but in the interests of tough love, I really think you need to consider why you felt the need to do this. I recognise the temptation factor and consider myself a compulsive debtor, currently 'working the steps' with debtors anonymous. This is a personal thing & I don't mean to imply everyone on a DMP has the same issues but in this thread I suspect it might be worth considering.

Lensman_2

If you did go bankrupt, it is likely that this spend on credit would come under scrutiny from the receiver. You my end up with a restriction as a result.

I would see what the review brings up first, you can always decide as a result of that.

tony007_2

Sazzie23 Thanks for your response can you tell me what SC and PP stand for I have never been any good at abbreviations, Lensman can you tell me what the restrictions would be? Thanks.

tony007_2

Sorry I pay a monthly fee to my debt management program.

Deep_In_Debt

SC is StepChange and PP is Payplan. Both of these are non fee charging dmp providers.

I would suggest ditching your fee paying dmp provider and going with one of the above and include your credit card debt in with a new plan.

Murphy2011

Stepchange and Paypla, they are free DMP providers so all f your payment goes to your creditors. If you are paying a fee then my cynical little mind wonders whether they would actually chuck you off the plan but frankly you need to do 2 things smarting. Ditch the fee paying DMP(check the terms and conditions for any charges etc for doing this) & chop up the card. Then you can get a new DMP set up where all of your money goes towards paying your debts. I have to say though I also agree with Sazzie on the tough love, why on earth would you run up more debt when you already have a DMP? I'm not sure you have had your lightbulb moment yet so this might also be a good time to think about how you are going to manage things when you do get out of debt otherwise you will just go round in debt circles.

tony007_2

Sazzie 23 The reason I felt the need to do this was the kitchen carpets and windows that I had were in really bad condition kitchen was tatty looking cupboard doors broken, carpets were really badly worn and dirty, windows were drafty. What I did has made a great improvement to my property. Still wish I had'ent done it now though but I cant turn back the clock.

Standingtall

Hi Tony

I have to have a works credit card for expenses so credit is not always a no-no on a DMP, although you are supposed to be upfront and open about it.

My DMP is with Payplan so every penny I pay goes to my creditors. Additionally they have NEVER asked to see details of my bank account. What I report to them is taken on trust but keeping in mind that should a debt ever be taken to court then dishonesty would be heavily frowned upon. Nonetheless it gives you some scope for flexibility on expenses.

I would consider ditching your fee paying provider and investigate either undertaking your DMP yourself or with Payplan / Stepchange.

ST

tony007_2

I will wait to see what the response is from my DMP before deciding to take out another plan with no fee. Thanks all.

sourcrates

tony007 wrote: »

I will wait to see what the response is from my DMP before deciding to take out another plan with no fee. Thanks all.

OP you can pay all your creditors yourself, for free, why pay someone to click a keyboard when you can do it yourself ????
you are just wasting more money, it is really simple to do it your self !!!!