Debt Management Plan

madzman

Hi ive just took up a debt management plan with Hamiltin Locke, i owe to various banks either credit card or loan plus a 2k overdraft to barclays, debts in total 55k, turned down for a cva and was recommended hamilton locke, they set me a deal up where i now pay 100 quid a month for over 50 years im happy to do this but is there a different way?
I dont wanna go bankrupt ......... cheers in advance

Eager_Elephant

Hi madzman,

I assume that of the £100 you pay each month Hamilton Locke take a percentage for themselves??

You should really think about contacting Payplan or CCCS - www.payplan.co.uk or www.cccs.co.uk.

Can you post a list of incoming and outgoings with income and essential bills at the top and then debts underneath?

If your income is not going to increase I suggest a better alternative would be bankrupcty - the restrictions are not as bad as most people think and too be honest a 50+yr DMP is not a feasbale option.

Although creditors might accept this in the interim they won't accept it for longer than a few years at most.

Can you post a bit more about your situation and also your reservations about bankruptcy?

EE

madzman

hi elephant my income will not rise much in future, main concern over bankrurptcy is that we have a new car which is on hp that i am continuing to pay seperately so we do not lose it, plus we dont like the idea of having our names in local paper!
You say creditors will accept this short term but not long term so what happens then? We own nowt of value and rent a house they cant get what we havent got, bulk of debt is cc barclaycard and barclay bank with the biggest debt and yes hamilton locke are taking a %

Eager_Elephant

Firstly I suggest you inform Hamilton Locke that you will not be using there service in the future and stop all payments to them. Then contact one of the companies listed in my previous post - they will do the same as Hamilton Locke but not charge you for it. It may take a month or 2 to set this up with a new company so in the meantime send the payments that have been previously agreed to all your creditors.

If your income is not going to increase then I can't see any point struggling on for years. Do you really need a brand new car? Can you sell it and get something cheaper?

To be honest the advert in the local paper is small so how many people will notice it? Even if some do, the next week there is bound to be someone else they know so they will talk about them instead an you will be forgotten.

In the longer term they could apply for a CCJ (county court judgement) and you will have to pay an amount set by the judge, which should be within your income, if you fail an arrangement they can instruct a bailiff or apply for deductions from your wages.

EE

liz105

Id run a MILE from anyone taking a cut of your hard earned cash that could be paying off your debts. Call CCCS or PAYPLAN or CAB ASAP.

I dont know the exact effect bankruptcy will have on for example your car, best head over to the bankruptcy board for that.

Have a look at southern scousers sticky at the top of the page for your SOA.

madzman

In the longer term they could apply for a CCJ (county court judgement) and you will have to pay an amount set by the judge, which should be within your income, if you fail an arrangement they can instruct a bailiff or apply for deductions from your wages.

As a 100 quid is all i can afford what benefit would the companies have in doing this?
Might only be a small reference in local rag but there for family and friends to see and we do not want this

madzman

Bankruptcy would mean we would lose car as it is an asset, thing is we went for a iva which took 3 months and failed at last hurdle so companys are on to us now as whole process has took 5 months already and theyve just started talking to hamilton locke, if i cancel now it would all start over again, also if i cancelled hamilton locke would they charge for work thats been done already?

southernscouser

Ditch the people you are with and go to these guys. They are a registered charity who do not charge you a penny for their services.

Also, if you pay them £100 a month the whole £100 goes to your creditors.

Eager_Elephant

Well it depends what your expensiture is like? If your Hp was not a feasble amount they could knock that off the expenditure giving you more available income and then the payment you would have to make to that creditor would be a lot higher.

Could you talk to family and friends about it beforehand? Or could you say you 'had a disagreement with the Inland Revenue about tax and because you were still sorting it they made you bankrupt but don't worry it's all sorted now'?

If you only do one thing I suggested then that should be to contact a company that don't charge for a DMP.

EE

madzman

CCCS were the first people we tried, recommended by barclays bank, they advised bankruptcy

Eager_Elephant

Hamilton Locke should not charge you for work already done, I assume you put down a deposit so that would be all you loose but it would be cheaper in the long run.

If you are sedign payments to your creditors while everythign is set up then that shoudl keep them quiet for abit.

Why do you care for the car so much? It would be an asset in bankruptcy and the OR may force you to sell it but if you work you will be allowed a cheaper car. Sometimes you could be allowed to keep the car if needed for work purposes but the Hp comapny might terminate the agreement if you are bankrupt as some have this clause in the agreement.

EE