DMP & Mutual Support Thread - Part 11

sourcrates

carbootcrazy wrote: »

Brogden, I'm sorry to keep banging on about this:o but I was wondering if you could please shine a bit of light on what exactly constitutes 'formal' in a debt programme if a DMP is not considered to be so.

These were the questions question Zenshi was asked to answer:

'ThE application for the bank account had a box asking.....have you any CCJ, are bankrupt or in a formal debt programme.
As everyone on here states a DMP is not formal , I ticked the no box'

You seem very knowledgeable about all things DMP and the info might prove very useful if I or anyone else on here ever need to fill in any such forms;)

Formal debt solutions are those laid down by parliament.

They are :

Bankruptcy,

IVA,

And DRO.

A DMP is an informal arrangement, so not legally binding, wearas the others are.

CA1905

Hi Long time lurker, first time poster


I am currently in a DMP with StepChange. I have recently sold my property and moved to rented for the reasons of needing additional space for my family compared to previously having an apartment.


After all fees, and sinking fund, there is a small amount of equity but not sufficient to clear what I currently owe.


My question is this, am I obliged to use the sale proceeds towards what is outstanding, I am thinking of going back to uni to increase my career / pay prospects and ideally would use the amount left for this.


What would StepChange's likely approach be to this?

sourcrates

CA1905 wrote: »

Hi Long time lurker, first time poster


I am currently in a DMP with StepChange. I have recently sold my property and moved to rented for the reasons of needing additional space for my family compared to previously having an apartment.


After all fees, and sinking fund, there is a small amount of equity but not sufficient to clear what I currently owe.


My question is this, am I obliged to use the sale proceeds towards what is outstanding, I am thinking of going back to uni to increase my career / pay prospects and ideally would use the amount left for this.


What would StepChange's likely approach be to this?

No ones buisness but yours, see above post, a DMP is an informal agreement, the money is yours, do what you want with it, you don't need to tell anyone.

CA1905

Thank you sourcrates, I was worried, that StepChange would kick me off the DMP with them if I said I wasn't intending to use the equity towards the debit.


I understand that it's an informal agreement, I was proposing to pay more per month, in a sustainable way, but wondered if there would be an impact or it would be viewed dimly

CA1905

I asked because i'll need to provide an updated I&E for Stepchange, some of my outgoings have increased, some lessened which means I can pay more but ovb there's the question of what I'm doing with the equity

sourcrates

CA1905 wrote: »

I asked because i'll need to provide an updated I&E for Stepchange, some of my outgoings have increased, some lessened which means I can pay more but ovb there's the question of what I'm doing with the equity

Simply don't mention it, worst case senario, they kick you off the plan (unlikely) you go self managed, there are no losers here !!

blisteringblue

sourcrates wrote: »

Simply don't mention it, worst case senario, they kick you off the plan (unlikely) you go self managed, there are no losers here !!

Exactly, it's not even slightly an issue if they do, you are not beholding to them. Some of us actively choose to go it alone, you have so much more control anyway.

Spoonhead88

7 months in my DMP, Paid of 40.30% of Debt. I seem to be wishing my life away i just wish i could hit fast forward.

waveycat

Hope you don't mind me asking.....but could a creditor see you had funds in your accounts or have had a recent lump sum? Or am just paranoid?!

Jon81

waveycat No not unless you tell them