Arranging DMP Help

Chubacca

Hi,

I have my counselling session tomorrow with CCCS. I would prefer to try and pay back my debts even though I have no assets and I am solely on benefits.

I would like to do this through a DMP. However, what happens if some companies do not agree to a DMP managed by the CCCS - would I then have to go bankrupt?

I have also read about companies changingt heir minds, is this likely to happen?

Our benefit situation is unlikely to change as I am severely disabled, as I have no equity or assets, surely, it would make sense to them to have something rather than nothing (IE If I go bankrupt?)

Why can some people pay for years on a DMP with no change, and others the companies are harsh with - is it more likely they will get awkward if they know you have assets?

Snaggles

Hiya, welcome to DFW :wave:

I'm not really sure of the answers to your questions, but just thought I would pop in to say hello - I'm sure someone with more knowledge will be able to give you some answers tomorrow.

The CCCS will go through your income and expenditure and will make offers to your creditors based on whatever you have left over. If they are not happy with the amount offered they can take you to court, but it is unlikely they will do this,as a) if you haven't got it, you can't give it them (and the judge will only order you to pay what you can afford), and b) they will incur court costs themselves. If you don't have any assets, they don't really have any reason to want to make you bankrupt, but I've no experience of that area, sorry.

Good luck with the CCCS tomorrow, I hope it goes well. One thing to mention is that I've gathered from reading lots of posts on here that the first few months of a DMP can be a bit hard going, with creditors contacting you etc - if you do start getting a lot of hassle over the phone, let us know and we can find you a template letter that you can send them to request written communication only.

Chubacca

Oooohhh Snaggles, thankyou so much for the warm welcome

Thanks too for answering some of my questions. I think if I start to get hassled I will change my phone number :lol

Snaggles

Just bumping your thread for the morning people to have a look at.

newlywed

Hi, well done on getting help with your debts.

Most companies, if they don't accept the DMP, issue you a default (which is just a black mark on your credit report) and then pass it to Debt Collection Agency. This means interest then stops and the DCA is more willing to accept a low payment.

If you don't own your house then they can't issue any charge against it so their likely options are to sell the debt on to DCA or else issue a CCJ - but as has been said the court isn't likely to increase payments that CCCS set for you.

If you do own your house, they can put a charge on the property - which just means if and when you sell it, you have to pay the debt. It doesn't mean they can force you to sell your house .

CCCS have been great for me and are really nice.

It is true that initially your debt increases as you are paying lower monthly amounts and they will still charge interest until they agree the DMP. For me, some agreed instantly but would only stop interest and charges on the second payment of the DMP. It took 4 months for all of mine to accept - but they all have

Best thing I ever did. No phone calls at all now from creditors. No letters, just the odd statement showing the debt reducing

Chubacca

Thanks everyone, got my interview shortly, trying to stay awake, my disability makes me very tired.

OH bought me a lucozade (I know, I know) but it does help me stay awake when I really have to! :j

Will let you know how it goes. :eek: