DMP mutual support thread part 13 !!

horizon1214

@sourcrates & @stu12345_2

Thank you for your responses/advice. 

@sourcrates - What could I expect to happen over the next 6 months whilst I'm not paying my creditors & saving the EF/Settlement fund? Could I get any CCJ's or anything like that?

I know it sounds stupid but I am just really worried about doing it, it doesn't seem moral to stop paying my creditors & just ignore it for 6 months. I could do it but I'm just worried about what might happen & what my family could go through. I know it's imperative to have an emergency fund by what I have read on this thread. I know all my debts bar the rent arrears are non-priority. I'm already in discussions with the housing association I pay my rent too. 

sourcrates

horizon1214 said:

@sourcrates & @stu12345_2

Thank you for your responses/advice. 

@sourcrates - What could I expect to happen over the next 6 months whilst I'm not paying my creditors & saving the EF/Settlement fund? Could I get any CCJ's or anything like that?

I know it sounds stupid but I am just really worried about doing it, it doesn't seem moral to stop paying my creditors & just ignore it for 6 months. I could do it but I'm just worried about what might happen & what my family could go through. I know it's imperative to have an emergency fund by what I have read on this thread. I know all my debts bar the rent arrears are non-priority. I'm already in discussions with the housing association I pay my rent too. 

That is a natural response to something you have little knowledge of, and is to be expected.

When you stop paying your non priority debts, something called the "collection process" kicks into gear, this involves your creditors writing to you, calling you, basically in order to get you to re-start your payments, as they are non the wiser as to why you have suddenly stopped paying your debts.

If you fail to engage, then your accounts may be assigned to debt collectors, or sold, and you should be defaulted, this is exactly what you want to happen, any contact with creditors will delay this happening, keep in mind, the creditors you have now, will likely not be the same ones you eventually enter debt management with.

Legal action is rare, that`s why we have debt collectors, any action must be in accordance with the civil procedure rules, so a letter before action must be sent, there will be plenty of warning of any legal action taking place, and it doesn't really happen at this stage anyway.

It`s a well trodden path for those "in the know".

hjbp81

hjbp81 said:

Hello,

It's my first time commenting on this very helpful thread and I'm looking for some advice with regards to my situation.

From November, I have been unable to keep up with my minimum payments across multiple creditors, I went to Step Change (contrary to advice here and something I learned after that) and their advice was a DMP over 4 years which I have set up and is due to begin in February. I have 15 accounts across 9 creditors with a total around £65k. After my SOA, I have £1220 a month to pay towards debts. Around 4 of these accounts I could likely pay off in full each month for the next 4 months as their balance is relatively low, i.e. less than my £1220 but that would mean the rest of my creditors do not receive a payment, or receive a low token payment of £5.

Would this be a wise approach? Paying the lower balances off in full over the next few months and then entering a DMP with the remaining accounts around May time? Or is it better to cancel my DMP, continue to save, allow to default and then pay. Any advice greatly appreciated, I feel I should pay now to get some accounts settled earlier and reduce impact to my credit and I feel an approach of lumping most of the £1220 towards a single debt while paying token payments over a few years on the rest would get things cleared up quicker?

Thanks

Does anyone have a moment to offer any advice here? I'm considering moving to self managed DMP around May. Thanks.

sourcrates

hjbp81 said:

hjbp81 said:

Hello,

It's my first time commenting on this very helpful thread and I'm looking for some advice with regards to my situation.

From November, I have been unable to keep up with my minimum payments across multiple creditors, I went to Step Change (contrary to advice here and something I learned after that) and their advice was a DMP over 4 years which I have set up and is due to begin in February. I have 15 accounts across 9 creditors with a total around £65k. After my SOA, I have £1220 a month to pay towards debts. Around 4 of these accounts I could likely pay off in full each month for the next 4 months as their balance is relatively low, i.e. less than my £1220 but that would mean the rest of my creditors do not receive a payment, or receive a low token payment of £5.

Would this be a wise approach? Paying the lower balances off in full over the next few months and then entering a DMP with the remaining accounts around May time? Or is it better to cancel my DMP, continue to save, allow to default and then pay. Any advice greatly appreciated, I feel I should pay now to get some accounts settled earlier and reduce impact to my credit and I feel an approach of lumping most of the £1220 towards a single debt while paying token payments over a few years on the rest would get things cleared up quicker?

Thanks

Does anyone have a moment to offer any advice here? I'm considering moving to self managed DMP around May. Thanks.

Hi,

Difficult to advise currently as defaults are taking a lot longer than normal in most cases.

Best advise is to do what you feel is the best thing for you, self managed is always preferable as you retain all the control and not some 3rd party.

horizon1214

sourcrates said:

horizon1214 said:

@sourcrates & @stu12345_2

Thank you for your responses/advice. 

@sourcrates - What could I expect to happen over the next 6 months whilst I'm not paying my creditors & saving the EF/Settlement fund? Could I get any CCJ's or anything like that?

I know it sounds stupid but I am just really worried about doing it, it doesn't seem moral to stop paying my creditors & just ignore it for 6 months. I could do it but I'm just worried about what might happen & what my family could go through. I know it's imperative to have an emergency fund by what I have read on this thread. I know all my debts bar the rent arrears are non-priority. I'm already in discussions with the housing association I pay my rent too. 

That is a natural response to something you have little knowledge of, and is to be expected.

When you stop paying your non priority debts, something called the "collection process" kicks into gear, this involves your creditors writing to you, calling you, basically in order to get you to re-start your payments, as they are non the wiser as to why you have suddenly stopped paying your debts.

If you fail to engage, then your accounts may be assigned to debt collectors, or sold, and you should be defaulted, this is exactly what you want to happen, any contact with creditors will delay this happening, keep in mind, the creditors you have now, will likely not be the same ones you eventually enter debt management with.

Legal action is rare, that`s why we have debt collectors, any action must be in accordance with the civil procedure rules, so a letter before action must be sent, there will be plenty of warning of any legal action taking place, and it doesn't really happen at this stage anyway.

It`s a well trodden path for those "in the know".

Thanks again sourcrates. You've been very helpful & I really appreciate it. 

All direct debits are cancelled, new bank account opened, essential bills, wages & child benefit all moved over. Time to start saving that emergency fund. I will keep you updated as I through the next 6 months or so & if I receive any scary letters, you bet I will be straight on here!

Norfolk_Jim

Mmmm, life keeps getting worse. I've been on SSP for 8 weeks now, signed off for at least another 8 weeks and unlikely to work again in the short term if at all. Obviously I need to stop paying my unsecured debt for the time being - which brings me to my question. If my creditors find out how impoverished I've become and how they will likely never see their money back, won't they come after my house? I have not seen any posts on this thread I can remember where the unsecured creditors went after the debtors house or made them bankrupt, so is a charging order the likely outcome or do I have good reason to be concerned?

sourcrates

@Norfolk_Jim

Unsecured debts are just that Jim, unsecured.

If you can`t pay your original creditor, all they do is sell the debt, and make it someone else`s problem.

Debt purchasing companies occasionally go for a CO, but in 99% of cases that`s where it ends.

Most homes are owned jointly, so a CO against one party is just added as a restriction, even if you are the sole owner and have a CO, courts won`t turf folk out into the street when other options are available, such as payment plans etc.

Orders for sale are now so rare official figures stopped being recorded in 2015.

It would have to be a particularly unusually bad set of circumstances to have an order for sale granted against you in the current climate.

Dad123456789

CurlyTop11 said:

happytimesahead said:

Hi all,

I’m in the process of building up an emergency fund/ waiting for defaults prior to starting a DMP, which I’m hoping to do self-managed.
I’ve missed 2 payments so far on a loan with Lendable, and they’ve sent me an email this week stating:
“We'll visit you at home next week

You're falling behind with your loan repayments. 

If we do not hear from you or receive a payment within the next 7 days, we will instruct our representatives, Fieldcall Limited, to visit you at your home address to reconnect with you.”

I didn’t think they’d have people sent out to my house before defaulting to be honest so this is a bit of a surprise! Has anyone else had this?

I’m happy to block/ignore letters & calls whilst I wait for the defaults so I can get the DMP started, but having people knocking on the door is a bit of a step up, so I’m not sure whether to keep holding out for the default, or just bite the bullet and start reduced payments before they default the account. 

Any advice would be appreciated, thanks! 

@Atribecalledquest I have received the same email now, even after sending Lendable a 'remove implied right of access' and them responding to that email.

Did Fieldcall come out to your property and/or contact you beforehand?

Many thanks

Curlytop, what was the result of this? I have a debt with lendable and I have just cancelled my DD, expecting the same response

tksnota

1. can i start a dmp even if I just recently used the unsecured loans (timeline 1.5 months) to fund the scam and haven't paid any penny so that the interests might not start piling up or wait for them to be defaulted?

2. will organizations like step change might not help me because of the above situation?
3. It is a common question about CCJ. I had a combined unsecured loan of £95k so I’m expecting a few of them especially the large ones to take this action even if I’m on DMP. Is my expectation justified?
4. My DMP will run for 20 years with my current payment. When can I start offering F&F and what’s the indicative percentage I can offer that creditors will most likely accept?
5. I have mortgage but keen on using DMP instead of an IVA. Is this the right approach?

sourcrates

tksnota said:

1. can i start a dmp even if I just recently used the unsecured loans (timeline 1.5 months) to fund the scam and haven't paid any penny so that the interests might not start piling up or wait for them to be defaulted?

2. will organizations like step change might not help me because of the above situation?
3. It is a common question about CCJ. I had a combined unsecured loan of £95k so I’m expecting a few of them especially the large ones to take this action even if I’m on DMP. Is my expectation justified?
4. My DMP will run for 20 years with my current payment. When can I start offering F&F and what’s the indicative percentage I can offer that creditors will most likely accept?
5. I have mortgage but keen on using DMP instead of an IVA. Is this the right approach?

All these questions have been asked and answered in your previous posts.

You were advised to post an SOA, which we are still waiting on.