Can not afford DMP anymore

Happy2

Hello can anyone help . I have been in a debt management plan for some years and have £10,000 left to pay and have lost my income due to having a baby and my husband lost he's job and is on job seekers and we can no longer afford the DMP fee, we part rent and part own our housing association flat and want to know if creditors could come after it ?

dancingfairy

A dmp is an informal agreement between you and your creditors. You earn more, you pay more, you earn less you pay less. You need to get in touch with whoever is organising your dmp and explain the situation. They should go through a new budget sheet with you. If it is a fee paying company then you should ditch them and go with a free company such as Stepchange or through the National Debtline or your local CAB.
In answer to your question. It's technically possible but highly highly unlikely they would go after your house. Your creditors may threaten this that and the other but it is like the wolf in the 3 little pigs story (I'll huff and I'll puff....).
Technically your creditors could make you bankrupt and force a sale of your house but this would cost them time and money and is very unlikely to be worth it for them. What they might do is possibly take you to court and get a charging order on your house. This is like a security blanket and says when you sell your house then they will get a go at any equity it does not mean they will force a sale.
i think you are also in a stronger position than most as a) you don't own the whole property so there is less equity, b) the housing association might kick up a fuss and c) a housing association property will be harder to sell and will have additional terms/conditions attached. I think it's most unlikely your creditors will bother with your house.
I suggest you get in contact with Stepchange or National Debtline and work out what's best for your family now.
Best of Luck
df

Monkeyballs

As per the Dancing Fairy...

Speak to your provider and switch if you're with a fee paying one, you can probably still afford a DMP as it is possible to drop your payments right down to token payments.

Memory seems to recall that Step Change require a £5 minimum per creditor while Payplan and Christians against Poverty have a minimum of £1? Someone will correct me I'm sure but what I'm trying to say is speak to several if you have to to find out what is best for you!

MB

Stewart_78

I'm with Payplan and dropped my payments to £1 per creditor with no problems. Just told them that our household income had dropped and that it would hopefully be temporary and that was that. Filled out a new budget sheet and carried on. I have much, much more than 10k to pay off and have disposable assets but they have never shown any sign of coming after them.

Depth_Charge

Happy2 wrote: »

Hello can anyone help . I have been in a debt management plan for some years and have £10,000 left to pay and have lost my income due to having a baby and my husband lost he's job and is on job seekers and we can no longer afford the DMP fee, we part rent and part own our housing association flat and want to know if creditors could come after it ?

Hi

Just following on

Are you currently with a fee charging company or one of the free providers?

There is the option of self managing if you feel you can or have problems with providers administering token offers.

Citizens advice have a FREE online DMP system that does everything and incorporates a transfer provider system (see below)

https://nedcab.cabmoney.org.uk/dmp.asp

Also have you checked out other options before and now you have had a change in circumstances (useful links below)

https://nedcab.cabmoney.org.uk/debtremedy.asp

https://www.mymoneysteps.org/

http://www.stepchange.org/Debtremedy.aspx

Best Wishes


DC