DMP mutual support thread part 13 !!

sourcrates

re123 wrote: »

Thanks for the reply. So what do I do with the debts once I cancel all the direct debits etc? Do I tell them I'm setting up a step change plan? Ignore them? Make a token payment etc?

I'm a bit confused about that part, step change have advised they are happy to setup the DMP , though I know the phone contracts will be an issue until a final bill is produced

Ross

Ross,

You can ignore everything, right up until the point a "letter before claim" arrives preceding court action, as that is the only enforcement action your creditors can take, that point won`t be reached until all creditors have gone through there standard range of letters, tried engaging collection agencies, or assigning the debts to someone else, it takes many months, even years to get to this point.

Best not starting anything until everything is defaulted and your debts are frozen and won`t increase.

Stepchange work to an agenda, their modus operandi is to get you paying down your debts ASAP, as they are financed by the big banks, that is not always the best option for you.

re123

That's really helpful, didn't realise half of that. I've cancelled all my DDs and will hold fire on step change for a couple of months at least. That will give me a good emergency fund too.

Appreciate the help

Mrsroebuck

Hi all, my husband and I began a self managed DMP mid December, we are at the point where our offer letters have gone out and we are beginning to get replies. So far so good, all our creditors at the moment have accepted with the exception of Creation who have passed our account to shoosmiths solicitors. They have refused our payment offer and are looking to pursue a CCJ and charging order. Now, here is my question, the creation debt is just in my husband's name and our house is jointly owned. Can they pursue a charging order and if they do what is the likelihood they will force a sale? They have said they will accept our payment offer under the CCJ and charging order. They are the only one who have said anything along these lines, all our other creditors (there are 18 between us!) have accepted the payment offer with no issue

sourcrates

Mrsroebuck wrote: »

Hi all, my husband and I began a self managed DMP mid December, we are at the point where our offer letters have gone out and we are beginning to get replies. So far so good, all our creditors at the moment have accepted with the exception of Creation who have passed our account to shoosmiths solicitors. They have refused our payment offer and are looking to pursue a CCJ and charging order. Now, here is my question, the creation debt is just in my husband's name and our house is jointly owned. Can they pursue a charging order and if they do what is the likelihood they will force a sale? They have said they will accept our payment offer under the CCJ and charging order. They are the only one who have said anything along these lines, all our other creditors (there are 18 between us!) have accepted the payment offer with no issue

No they cannot pursue a charging order, just a restriction.

An order for sale is not possible under those circumstances.
Make sure both they, and the court are informed the house is jointly owned.

If they do get legal, (and they threaten this all the time, but don`t always follow it through), make sure you respond to all court documents, and fill in any paperwork you are required too.

As long as the terms of the CCJ are adhered too, they cannot further enforce the judgement, so basically keep up the payments, and they can`t do anything else.

If you want Land Registry conformation, then pose your question here, and they will confirm it, they do update regularly in this thread :

https://forums.moneysavingexpert.com/discussion/1839539/charging-order-the-myth&page=211

Rlcs

Hi all,

I am so grateful for the advise given in this thread, it is immensely useful. I have been following this thread for around 8 months.

I took the leap in August and sent all lenders (6 of them) letter informing them of my situation. I've had initial contact with Payplan and was ready to go, then read the advise for saving for an emergency fund.

Since then I have managed to go from have no savings whatsoever to having £2,300. Which I am supper happy about.

Initially I was making token payments of £1 and ignoring the barrage of automated letters and phone calls. Things have settled down now however only 2 of the accounts have defaulted.

I was wanting to get payment going this month, however should I wait for the defaults?

My overall debt across credit cards and overdraft is £32k. 3 of the 5 have stopped interest, however the other 2 are continuing to charge. Is there anything I can do to stop these?

I also have a car I have on HP with 2 years left at £380 a month. I know this is a lot of money but I was young and stupid and I'm closer to owning it now so it makes sense to finish payments. Around £9k left.

My yearly salary is £30,000 before tax. I have a student loan to pay and pay around £100 into a pension a month. This is a very lucrative pension and do not want to stop paying in. I earn about £450 a month in overtime before tax. However this is not guaranteed and could stop at any time.

Should I save the money from this overtime for a F&F offer down the line or make extra payments each month?

Before overtime I could afford a payment of £200 a month, this covers all expenses and allows for a small amount of saving. With overtime this would increase to around £400 a month. Allowing for a small saving from my overtime each month.

Rough calculations, but if I paid the overtime in and increased payments by £380 when my car finished I'd be paid off in about 50 months. Would be about 62 months without the extra £200 a month. Is it likely to get a decent F&F settlement in this time?

My oldest debt is 7 years. One has passed on management to a debt management company.

Apologies for so many questions but there's a wealth of information here.

Thank you all in advance.

Changingtimes

Just in the process of setting up my self managed payments to creditors. A couple are now with DCA. They have agreed my proposal but want card details to take the payments on the set day of the month. I am presuming this is ok to do as theres a payment plan in place?

sourcrates

Changingtimes wrote: »

Just in the process of setting up my self managed payments to creditors. A couple are now with DCA. They have agreed my proposal but want card details to take the payments on the set day of the month. I am presuming this is ok to do as theres a payment plan in place?

No, no, no, and thrice no.

You organise the payments either via bank transfer or standing order.
Under no circumstances give a debt collector your card details, ever !!!!

Changingtimes

Ok thank you for that advice. Its DCA portal that asked for them as they only accept Direct Debit or card payment. Thank you for your advice.

re123

Can I get some honest feedback from those that have gone through a DMP, I'm just seeing up , I'm going to use payplan rather than stepchange now, though believe these are similar

My plan is due to start on march 15th , I have 14 creditors, mobile phone accounts, loans and credit cards.

Am I going to get constantly hounded by phone calls? If so how long before these usually stop (will they stop once payments are accepted?) I know you can send letters saying no phone contact and from reading on here it doesn't sound like most dcas listen to that

I know I can not answer but my wife works from home childminding constant calls all day will be the end of us.

Any honest thoughts would be appreciated. To say I'm wobbling now is an understatement

Enjoying_life_more

I’ve been self managing my DMP for the last 12 months. During that time all my creditors have defaulted my accounts and they’ve been taken over my DCA,s. I have never received any phone calls at all from any of them but I have kept to my payment plans and also rang them to do a review of my payments after 12 months. All the people I have spoken to at the various agencies have been supportive and a couple also reduced my payments as they felt my budget was too tight. Please don’t worry about being hounded from my experience it doesn’t happen. Also at the start I worried about my post somehow giving away the fact that I was in debt - this isn’t the case all letters arrived in plain white envelopes. Starting the DMP is one of the best things I have done. I hope this puts your mind at rest.