DMP Mutual Support Thread - Part 12

January2015

NowInspired wrote: »

Hi
My head is full of questions and I have to ask them as I think of them.

I was about to ask why it is better to be defaulted before a dmp but it looks like that has just been answered. My only remaining query on that though is, by defaulting, do we run the risk of bailiffs or court proceedings? Is it just literally a case of stopping the payments or do we need to still communicate with the companies in any way?

Also, does each company run a check to see what we owe to other companies? I have one small debt that I am happy to continue with as it is nearly paid off and would rather not default it but I wondered whether the other companies would know?

Thanks in advance for your help.

As you said, you have now read that it is better to try and get accounts defaulted as quickly as possible.

As long as you communicate with your creditors there is minimal risk of court proceedings. Bailiffs action would be some way after court proceedings - so don't even panic about that.

From personal experience original creditors rarely, if ever, take court proceedings. They take the easy route for them of passing the debt to a debt collection agency (DCA). DCAs won't take action as long as you communicate with them. Of course, they will eventually want some agreed payment plan, but it will take ages for them to get to the point of legal action to recover the debt.

Before it ever got to a point of legal action you would have lots of warning through letters. If you are unsure of any communications received, always come here and ask. We've all been through this (still going through this) and are happy to help.

Edit: Forgot to add, I have no idea whether creditors look at your credit files to see what you owe others, but don't even worry about it. As an example I paid one creditor off and it cleared £12k off my credit files (I didn't pay anywhere near that). If other creditors bothered to look they would have seen my debt total drop by £12k from one month to the next. If they did, then no-one contacted me then, nor since (and this was many, many months ago). Seriously, don't overthink what creditors are looking into.

[Deleted User]

January2015 wrote: »

Edit: Forgot to add, I have no idea whether creditors look at your credit files to see what you owe others, but don't even worry about it. As an example I paid one creditor off and it cleared £12k off my credit files (I didn't pay anywhere near that). If other creditors bothered to look they would have seen my debt total drop by £12k from one month to the next. If they did, then no-one contacted me then, nor since (and this was many, many months ago). Seriously, don't overthink what creditors are looking into.

I was glad NowInspired brought this up as it was something that has been puzzling me too. I wondered if creditors would find out that a big debt had been paid off yet I still only had the same amount of money to carry on paying the remaining creditors a token amount of £1.

January2015

January2015 wrote: »

As you said, you have now read that it is better to try and get accounts defaulted as quickly as possible.

As long as you communicate with your creditors there is minimal risk of court proceedings. Bailiffs action would be some way after court proceedings - so don't even panic about that.

From personal experience original creditors rarely, if ever, take court proceedings. They take the easy route for them of passing the debt to a debt collection agency (DCA). DCAs won't take action as long as you communicate with them. Of course, they will eventually want some agreed payment plan, but it will take ages for them to get to the point of legal action to recover the debt.

Before it ever got to a point of legal action you would have lots of warning through letters. If you are unsure of any communications received, always come here and ask. We've all been through this (still going through this) and are happy to help.

Edit: Forgot to add, I have no idea whether creditors look at your credit files to see what you owe others, but don't even worry about it. As an example I paid one creditor off and it cleared £12k off my credit files (I didn't pay anywhere near that). If other creditors bothered to look they would have seen my debt total drop by £12k from one month to the next. If they did, then no-one contacted me then, nor since (and this was many, many months ago). Seriously, don't overthink what creditors are looking into.

carbootcrazy wrote: »

I was glad NowInspired brought this up as it was something that has been puzzling me too. I wondered if creditors would find out that a big debt had been paid off yet I still only had the same amount of money to carry on paying the remaining creditors a token amount of £1.

To add a bit more info, I forgot to say that when I now send in I&Es to creditors the £12k debt is no longer included, so it is glaringly obviously something must have happened to reduced my debt total.

Other debts have been cleared and are no longer included and the debt total is dropping quite nicely. The creditors/DCAs can all see from the I&E statement the amount owing to creditors has significantly reduced each time and the number of creditors are reducing as well

Perhaps they don't say anything because they are hoping they will be next in line to be settled :rotfl:

smart_taunton_bloke

Hi all. I hope someone can help. I'm having my DMP managed by SC and all accounts have defaulted except 1 - Halifax. Does someone have a sample letter that I can send to them to ask them to default the account? Thanks

System

So today I’ve received a response from MBNA, Santander and Co op about my token payments, still awaiting Next and Argos although I’ve already been defaulted from NEXT the others have all said they will default me today so that’s good, let’s hope Barclaycard and Argos follow suit! I also sent my CCA requests to 3 of them today, fingers crossed one of them can’t produce but I’m not holding my breath. Hope everyone else is well.

make_the_change

One of my debts is considering at settling at 25% (this is my only debt that’s been sold on) and they will accept payment over three months. I have the funds to do this.

They want an I&E and want to know where the money has come from.

My question is, is there anything I need to do to make my I&E more convincing to settle at 25% and where do I say the funds are coming from?

It’s the only debt I’m offering a settlement to as the rest are out of reach of what I’m asking.

Thanks

[Deleted User]

make_the_change wrote: »

One of my debts is considering at settling at 25% (this is my only debt that’s been sold on) and they will accept payment over three months. I have the funds to do this.

They want an I&E and want to know where the money has come from.

My question is, is there anything I need to do to make my I&E more convincing to settle at 25% and where do I say the funds are coming from?

It’s the only debt I’m offering a settlement to as the rest are out of reach of what I’m asking.

Thanks

Are they offering you 25% off or will you be paying just 25% of the outstanding balance? If it's the latter it's an excellent offer:j:beer:


Most people tend to say that a family member has loaned/given them the necessary money to clear a debt.

As for your I&E, make sure you are claiming maximum amounts in most catagories. Don't let them think you have disposable income that could be used to repay your debts at a faster/higher rate. If they have already had an I&E from you just up what you put before. Don't rouse suspicions by,say, suddenly claiming £100 a month for cigarettes when you were previously a non-smoker:rotfl: but definitely claim for anything you can in as many catagories as you can.

Good luck:beer:

NowInspired

Hi
Thanks so far with the responses I've had to my questions on here.
What I'd like to know now is, (whether I go with Step Change or whether I self manage my own dmp) what is the process step by step. I realise from previous conversations that I must not rush straight into the dmp.

So in the here and now:
Do I stop paying the creditors altogether or do I pay them what I can afford?
Do I contact them at this stage and explain anything at all or do I leave it be until the dmp starts?

I'm naturally a bit nervous and could just do with knowing step by step the right way of setting out on this journey.
Many thanks,

make_the_change

carbootcrazy wrote: »

Are they offering you 25% off or will you be paying just 25% of the outstanding balance? If it's the latter it's an excellent offer:j:beer:


Most people tend to say that a family member has loaned/given them the necessary money to clear a debt.

As for your I&E, make sure you are claiming maximum amounts in most catagories. Don't let them think you have disposable income that could be used to repay your debts at a faster/higher rate. If they have already had an I&E from you just up what you put before. Don't rouse suspicions by,say, suddenly claiming £100 a month for cigarettes when you were previously a non-smoker:rotfl: but definitely claim for anything you can in as many catagories as you can.

Good luck:beer:

We are negotiating a settlement at 25% of the balance (paying just 25% of the balance). Fingers crossed they agree

[Deleted User]

make_the_change wrote: »

We are negotiating a settlement at 25% of the balance (paying just 25% of the balance). Fingers crossed they agree

Wow! That is a seriously good discount:j:dance:


Keeping everything crossed for a successful outcome for you. Don't forget to come back when it's all done and dusted to let us know how you got on. We love a happy ending on here:beer: