DMP mutual support thread part 13 !!

debarob

Hi all

i used this service a year ago when i was looking for advice on how to leave my debt management plan, and found it really useful. since then, out my 6 debts, 3 accepted a settlement, and one i am paying directly at an affordable rate with the hope of increasing this. the 2 other i have been yet to deal with, and unfortunately had completely forgotten about. i have this morning received a county court claim form and am really freaking out. i would consider myself to be in a very good position now having worked hard to pay of the majority of my debts and my credit file is currently clean. i am having know difficulties with keeping to my monthly financial commitments.
my questions is what do i do next, i am more than willing (and want to) pay this company at a monthly rate, which is what i had intended to set up but just haven't got round to. is it possible to contact them and make a payment and then set up a monthly instalment to resolve this issue and does this claim form automatically mean i will have a CCJ against my name, which would be heart breaking given how far i have come. all my debts are over 10 years old also.
any advice would be greatly received.

thank you

Willing2Learn

He debarob,

Is the claim form you described a 'Pre Action Protocol' paperwork. Is the same paperwork as in the article below:
https://debtcamel.co.uk/letter-before-claim-ccj/


If it is the same as above then you should complete the form. When you get to the offer of payment box then put your monthly instalment offer in there.

If you are unsure how to complete the forms then have a look at the video guide from StepChange. It is embedded about half-way down the page (scroll down)
https://www.stepchange.org/debt-info/ccj.aspx

sourcrates

debarob wrote: »

Hi all

i used this service a year ago when i was looking for advice on how to leave my debt management plan, and found it really useful. since then, out my 6 debts, 3 accepted a settlement, and one i am paying directly at an affordable rate with the hope of increasing this. the 2 other i have been yet to deal with, and unfortunately had completely forgotten about. i have this morning received a county court claim form and am really freaking out. i would consider myself to be in a very good position now having worked hard to pay of the majority of my debts and my credit file is currently clean. i am having know difficulties with keeping to my monthly financial commitments.
my questions is what do i do next, i am more than willing (and want to) pay this company at a monthly rate, which is what i had intended to set up but just haven't got round to. is it possible to contact them and make a payment and then set up a monthly instalment to resolve this issue and does this claim form automatically mean i will have a CCJ against my name, which would be heart breaking given how far i have come. all my debts are over 10 years old also.
any advice would be greatly received.

thank you

Hi,

When did you last pay this account, what was the default date ?
as it could be statute barred.

Failing that, you can try and arrange a payment plan, ask if they will stop the legal action, if they wont, and assuming its not statute barred, fill in the forms within the time scale permitted, and opt for monthly installments.

If it is statute barred, that is a full defence to any claim.

MrTall

Following my previous post, I've now received another letter from Barclays. They've accepted the offers of payment, and actually advised what will happen next. Almost all creditors have come back with an acceptance now, just two left (Virgin and Tesco.) EF settled and ready, and relieved to be starting!

Debtinator

Hi everyone,
Going through a tough time at the minute. I'm currently in a self managed dmp. All was going well until some personal problems has changed my financial problems. We have combined debts of around £35k, £17k joined debt, around £3k ex wife's debt and the rest is my debt. Currently paying £249pm. I'm going to need to pay for my kids but also me being able to live somewhere. So I'm unsure what to do regarding our debts as i won't be able to keep up with the full payments. Can i reduce all payments to creditors until I'm sorted or get in touch with step change to sort it out as my head is all over the place at the moment
Thanks

UH..OH

Hi,

I have been lurking around here for a couple of weeks and am impressed by the support and advice, so have finally built up the courage to ask for advice. To explain my situation a little bit. I have approx £25k of consumer debt including 2 pay day type debts. I hit my light bulb moment a couple of weeks ago when I tried to increase my secured loan to consolidate my debt and was refused due to my low income. I have been overspending for years and it has finally caught up with me. I have been doing a lot of work with my budget and sought advice from step change. They have advised a DMP, which will last over 12 years at a repayment of £182 per month.

I have no emergency fund but am currently not behind on any payments. I have contacted most of my creditors and advised them of my situation and that I am seeking advice from step change. I expect to be able to pay more per month towards my debt once I have my emergency fund in place. I wonder if I would be better to self manage a DMP, and if so, how do I go about this? I would like to see my debt coming down and focus on one debt at a time, while paying the absolute minimum towards the others. I have 14 creditors in total. Is it feasible to manage myself? Or do creditors prefer to deal with step-change? I have had no nasty letters and I guess I'm a little afraid of all the phone calls and letters I will start getting once I start missing payments.

I also have equity in my home, which I considered selling and got it valued by Purple Bricks. Once sold and all debt paid off I would have approx £60k left, but I am a single mum with 4 kids and currently live in the home my parents left me (although now mortgaged for £145k) and would never be able to afford another home of the same size and value. I would have to rent for awhile until my older kids have left home and I could afford to buy a smaller property, saving that £60k for many years. Rent for a house big enough would be double what I'm paying for my mortgage. So it just doesn't make financial sense for me to sell the house just now and emotionally it would devastate us all.

I feel like I need a reprieve of a couple months, to get an emergency fund in place and to learn to manage my budget properly, for the first time ever. It just seems so cheeky to ask for them to hold my accounts and I'm not sure how to go about it. Step-change are asking me to sign my agreement right now.

Any advice is greatly appreciated.

Thank you

Suseka97

Debtinator wrote: »

.......... We have combined debts of around £35k, £17k joined debt, around £3k ex wife's debt and the rest is my debt. Currently paying £249pm. I'm going to need to pay for my kids but also me being able to live somewhere. So I'm unsure what to do regarding our debts as i won't be able to keep up with the full payments. Can i reduce all payments to creditors until I'm sorted or get in touch with step change to sort it out as my head is all over the place at the moment

If I'm reading this correctly - you are about to split up with your partner and move out of the family home - then you are going to have to rework your DMP plan to suit your new financial circumstances. As for the 'joint' £17k debt, you'll need some arrangement whereby your 'ex' pays her fair share of that as well as her own £3k debt. You will then just need to rework your I&E to reflect the new situation and I'd write to your creditors to explain that you will need to put the DMP on hold until a future date to allow you time to sort things out.

Suseka97

UH..OH wrote: »

......... I have approx £25k of consumer debt including 2 pay day type debts. I have been doing a lot of work with my budget and sought advice from step change. They have advised a DMP, which will last over 12 years at a repayment of £182 per month. I wonder if I would be better to self manage a DMP, and if so, how do I go about this?

It's easy to self-manage, just takes a little bit of organisation. You should have a look at the NEDCAB website which has a great deal of information about DMPs and lots of standard template letters that you can use and/or tweak for your individual situation.

UH..OH wrote: »

I would like to see my debt coming down and focus on one debt at a time, while paying the absolute minimum towards the others. I have 14 creditors in total. Is it feasible to manage myself? Or do creditors prefer to deal with step-change? I have had no nasty letters and I guess I'm a little afraid of all the phone calls and letters I will start getting once I start missing payments.

Creditors do seem to prefer when folks use the debt charities, yes - but that doesn't stop you from going solo. If you use the NEDCAB resources, it generates a reference and you can refer to them in your letters. As for paying one at a time - that might not be so easy, you'll have to complete an I&E and it'll show your debts, the amount you can afford to pay and will suggest the split. Creditors will expect to be see a fair allocation of your available funds.

UH..OH wrote: »

....I also have equity in my home, which I considered selling and got it valued by Purple Bricks. Once sold and all debt paid off I would have approx £60k left, but I am a single mum with 4 kids and currently live in the home my parents left me..... So it just doesn't make financial sense for me to sell the house just now and emotionally it would devastate us all.

Well there's your answer....there's no need to sell the family home.

UH..OH wrote: »

I feel like I need a reprieve of a couple months, to get an emergency fund in place and to learn to manage my budget properly, for the first time ever. It just seems so cheeky to ask for them to hold my accounts and I'm not sure how to go about it. Step-change are asking me to sign my agreement right now.

An emergency fund is essential and its a shame that SC always want people to launch into their DMP without any sort of financial buffer in place. Anyway - follow the advice on the NEDCAB site, or from the advice offered here. Firstly write to all your creditors and let them know you are in financial difficulty and that you are working with SC or the CAB to come up with a debt solution and ask them to put your accounts on hold (again, you can use the NEDCAB templates). If you have any debts associated with your current bank account, you should get yourself a new and separate account first - then start sending those holding letters. You need to avoid being in a 'right to offset' situation.

I suggest you have a read back through this thread - yes it's long, but you will pick up a lot of useful tips on how to get up and running. Or you could use SC, but just stall sending the paperwork back until you are ready to press the 'go' button.

Good luck.

Treadingwater02

Hi, I wonder if someone can answer a question for me?

I’m currently in a DMP with Step Change, all my payments (apart from 1 missed one several months ago which I did inform them about) are up to date. Just out of curiosity I logged on today and checked my credit score and Lowell are recording all my payments as late! Is their a reason for this?

Thanks very much.

Yikes318

You've not done anything wrong, as such - so don't fret. Personally I would not have sent the I&E, but what's done is done. What you could do is write back to say that the I&E shows the position you 'expect' to be in, in x months time - but in the interim you are attempting to put some money aside for emergencies and you having to pay for unexpected car maintenance, boiler maintenance/breakdown, vet bills... or anything else you like.

You could add something along the lines of '...as I'm sure you would agree, having an emergency fund is a fundamental aspect of successful budget management and this will ensure that once the DMP is up and running, I will not find myself having to vary my arrangement due to any unforeseen or unexpected expenses....'

They are asking for the reason I’m not able to pay for a few months but I don’t feel like they will accept the fact I’m building an emergency fund as a valid reason. They are my biggest debtor and want to be extra cautious with them but I can’t think of an alternative reason.

They’ve asked to see an I&E for my current financial situation which I’ve never seen anyone mention on here.