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How long can a DMP last for ..
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ferry
Posts: 2,012 Forumite


Got asked today how long can a DMP last for before you need to consider an alternative method like an IVA or even bankruptcy?
Is there a maximum time an arrangement can last for?
Is there a maximum time an arrangement can last for?
:j
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Comments
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In a word, no !!
Some people have been on one ten years plus, it really depends on your individual situation, if you own a property going bankrupt may be out of the question.
To be honest, for me, anything over 6 years is too long, if you qualify for a DRO then get one, likewise, if you qualify for an IVA then get one, as long as it ticks all the boxes, and doesn't affect other areas of your life.
Likewise again, if you don't own a house, have a large debt, and no assets, then go bankrupt.
These solutions are there to be used, people are naturally suspicious of something they don't know or understand, I can't see why anyone would stay on a DMP for years on end, when other solutions are there for the taking.I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter0 -
Providing I can convince Creation to freeze my interest again, at my current rate, it will take another 12.5 years to pay mine off.
That said, I am paying Creation £1200 a year plus all my other creditors so they are getting their money and will get it all.
Two years ago I owed £32K, now I owe £26K so it has gone down by a big amount in just two years, Sure a big chunk was creditors writing off charges and interest, but me seeing this month that I owe £6k less than 2 years ago gave me a nice lift.
While another 12.5 years is a silly amount of time, that's presuming things don't change. Our mortgage will be paid well before then etc and I'm hoping to be able to return to some sort of part time work in the next few months, something that seemed impossible when I started the plan.
So while a long term DMP is a big noose around your head, in a lot of cases things can and do change (inheritance from parents/grandparents etc) and there's no way I want to loose my house (would be paying far far more in rent if I did than my mortgage costs)The way things are going, soon we are all going to be victims of something or other.
Who will we blame then?0 -
My DFD was 18 years away when I started out in 2011, getting better jobs has shortened that to 9 years and I reckon it will be 7 or 8 years when it's finally done. It was presented as a temporary arrangement in the beginning - I needed some breathing space to consider my options (there was/is enough equity in my house to clear my debts immediately) but after I decided that I wanted to stay here and stay on the DMP none of my creditors complained and I've just plodded on making the payments and increasing them when I could,“Have nothing in your house that you do not know to be useful, or believe to be beautiful.”
Wiliam Morris0
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