DMP Mutual Support Thread - Part 12

Suseka97

penaltychargenotice wrote: »

No reason not to go bankrupt - we rent and have no assets. The dmp for me and bankruptcy for hubbie was recommended by CAP. Before I went to CAP I had done some reading myself and thought this was the best solution for us both to go bankrupt. CAP went through our debts and recommended the DMP.

Definitely go with Sourcrate's suggestion then. I've no experience of BR but if I was in the same position I'd definitely not do both. I do hope your husband's health improves and whatever you decide - always remember you and he come first (creditors can wait). Good luck.

Dandytf

Excellent advice from checkmy file.
2nd default should not have been placed when co op account passed to link.
Default should drop off 6 years from original date since 2015.
I’ve been advised to write to co op to ensure default is removed or account suspended.
Result I wasn’t excpecting-very happy.
Printed letter to cop op this weekend it is then

fatbelly

penaltychargenotice wrote: »

I am thinking of setting up and managing my own DMP and I would really value any advice from anyone who has done this.

The situation is that we have talked to CAP (Christians Against Poverty) a charity helping people get debt free like Stepchange. They have been through our debts with us and they have suggested that my husband goes through bankruptcy as he is now too ill to work. We have agreed that is the right thing to do. However the debt in my name is a smaller amount (£14000 approx) and CAP recommended a DMP which they would run. My concern is with the budget they have given us. It seems very tight and about a quarter of our income (which is made up of benefits) is going to the DMP after we pay the bankruptcy fees. I think it is too tight to be doable for the three years the think it will take. Firstly because as my husband is quite poorly we need his PIP money to help him now, he may not live the three years to benefit from when the DMP is proposed to finish.

The second reason is that the amount CAP want to take for the DMP is over £100 more than I was paying in repayments before we came unstuck.

So my questions are do we stick with CAP? Quite a few people have recommended them to us. Will Stepchange be any different?

Are there any pros and cons to managing your own dmp?

Is it cheeky to go along with CAP while they sort husbands bankruptcy and then pull out of the agreement?


I've been thinking it over and I am really not sure what to do for the best.

My thoughts on CAP are probably best saved for another day.

I agree with the others that their plan makes little sense and bankruptcy x 2 makes more, unless there is a good reason why you must avoid insolvency.

A better plan again (if you meet the criteria) is a bankruptcy for him and a DRO for you.

You do not need third-party support to go bankrupt now - the website is very easy to navigate. If you can handle these forums, you can handle the website and make payment online by credit or debit card.

However you would need a third party to do a DRO and CAP are going to need their arms twisted on that one - may be better to run things past stepchange or CAB, if your local one is still doing debt work and not crippled by the new casebook recording system.

StopIt

piper89 wrote: »

Hi Folks
So last week I decided I needed to sort my life out as I was sinking in unsecure debts mostly PD loans due to gambling I had a look at Stepchange and went thru the online process and they recommended a DMP 2 years 4 months £211pm I noticed I forgot to add a guarantor loan (I know) I called them and they added it as debt owed to family/friends but on this action plan it recommended BR which isn't and option for me.


So after searching online I came upon debt advisory service give them a call and went thru the debt action plan which came back as £2- per month yet I was spending £280 PM on smokes i decided to stop smoking (which i have done so far) and throw this at the DMP £278 pm over 4 years 7 months double what Stepchange was this is due to the monthly fee of £57.I have been back on stepchange and tried to re do the plan minus the smoking but it keeps thrown out the BR on the action plan is there any other way I can work around this??...or use another company...

You can self manage.


Use the NEDCAB website https://nedcab.cabmoney.org.uk/remedy_4.asp


It'll work out Pro-rata payments to your creditors.


As it's an informal agreement, there's no real difference between Stepchange doing this and yourself. Whatever you do, do not pay for this service. You'll be paying for nothing.


You can always talk to Stepchange directly, rather than just using their site and they can potentially help also.

heavenlyharry01

Hello

A quick question about defaults.

What would your next move once you had asked a company to default you and they they refuse?
NRAM have said that they will not default us. Even though we have been paying them considerably less than the original payments since August last year. Is it worth taking it to the Ombudsman?
Thanks

penaltychargenotice

I would be interested to hear your thoughts on CAP. Two other people have tried to discourage me from using their services and I would really like to know if there is anything I should be aware of.

After doing my own reading I think we should go along with hubby as a bankruptcy and myself a DRO but CAP wouldn't support this as they said I had too much spare income. I am not sure the benefit system is set up to give people spare income! I am going to chat again with the CAP advisor but I have a good idea now of what we need to live on and our options so I don't feel like I need them to be my only option. Hubbie's ill health is not going to improve much if at all so this is the situation we are faced with. At the moment we are not being bothered by creditors and I have worked out my budget, spare income and percentage payments for each creditor. Otherwise it will be minimum payments and filing for bankruptcy.

fatbelly

penaltychargenotice wrote: »

I would be interested to hear your thoughts on CAP. Two other people have tried to discourage me from using their services and I would really like to know if there is anything I should be aware of.

After doing my own reading I think we should go along with hubby as a bankruptcy and myself a DRO but CAP wouldn't support this as they said I had too much spare income. I am not sure the benefit system is set up to give people spare income! I am going to chat again with the CAP advisor but I have a good idea now of what we need to live on and our options so I don't feel like I need them to be my only option. Hubbie's ill health is not going to improve much if at all so this is the situation we are faced with. At the moment we are not being bothered by creditors and I have worked out my budget, spare income and percentage payments for each creditor. Otherwise it will be minimum payments and filing for bankruptcy.

For a DRO what counts is your income (not your partner's, halve it if joint) and your share of the expenses proportionate to that income. PIP, DLA and Attendance Allowance do not count as income. If your income is benefits then, as you rightly say, it is unlikely you will show as >£50 surplus for DRO purposes.

penaltychargenotice

So I need to persuade to CAP to go with the DRO as I believe you need a qualified person to do it unlike bankruptcy? If they won't I assume I can find someone else who will?

fatbelly

penaltychargenotice wrote: »

So I need to persuade to CAP to go with the DRO as I believe you need a qualified person to do it unlike bankruptcy? If they won't I assume I can find someone else who will?

I don't think you'll persuade them to do something they don't want to do. You would hope they would act in the client's best interest but with CAP they have a 'repayment ethos' and get a 10% rake-back from the creditors on a debt management plan. Approved Intermediaries are not allowed to refuse to submit a DRO if asked but you really don't want someone to do this reluctantly. You could see what they say though.

If you can find an AI at your local CAB that's best. One that refers you to the MAS unit is OK as long as your case is simple. Stepchange should also be OK in theory but you may hit the same problem as CAP.

Leanneglos1

Hello, I have received a letter from first direct, they’ve confirmed they have rejected the proposal from step change and my account will now go to HSBC recovery systems, I assume this is totally normal in respect of debt management plans??