Debt management plan

Maid2iron

Hello

Due to my ex leaving me in a bad financial position I have a debt management plan. I'm trying to pay what is owed as I'm getting married next year. I am concerned this will be a problem in me being able to get a mortgage with my fiance. Can anyone help with my query please?

Also I've been told this will be on my credit file for 6 years, is this from when the plan was created or when the plan will be paid?

One last question do I have to pay all the amounts in full or can I request a settlement figure? If I request a settlement figure will this show on my credit file as being paid and cleared?

Thanks for reading. I look forward to hearing from you

mwarby

Ok defaults, IVA\DRO\bankruptcy will be there for 6 years. There is also a marker called AP (arrangement to pay) not sure how long that is kept for, but it's placed when you agree to repay the debt over time but not at or above minimum repayments in contract

A debt management plan doesn't have to include any of these, but in practice a default is likely(If you could meet all contractual payments you would need a DMP)

Mortgage wise it sounds like your credit history may already be far from ideal, even if 'score' is currently good(lender may be concerned with amount and long term affordability). Your chances are going to be better with no defaults or missed payments

You could try and negotiate with the lenders for a full and final settlement, how this is recorded could form part of such negotiations. Lender can either mark account as settled(the normal way of closing an account, say because loan is repaid) or partially settled (that is closed, no balance, but closed with being repaid in full, common in IVA\BR\DRO)

The other full and final option, is an IVA, I myself went for a full and final IVA from outset. This is like a normal IVA but you agree 1 lump sum instead of monthly repayments. This has the advantage of binding all creditors (assuming majority agree and IVA is approved), part of this involves comparing what the lender might get in bankruptcy, which can make even a low prectange repayment often expressed as p in £ if you have debts of £1000 and pay £100, thats 10% or 10p for every £ owed)

mwarby

The 6 years is from date of default, which is often after plan starts, but before end. Normally you get a default when none minimum repayments have been made for several months, you'll get lots of letters from lenders in run up to this.

fermi

See also: https://forums.moneysavingexpert.com/discussion/4757020