Nearly 100K debt...HELP!

Dancingdebs

Hi,I have posted on the Bankruptcy thread but thought I would post here to get some advise on DMP and IVA's. I seroiusly thought my partner and I's only option was bankruptcy because of our level of debt but I did the CCCS Debt Remedy last night and it suggested DMP or IVA. All our debt is unsecured.
My total debt is £40,695.87 and partners is about 58K (I still need one loan balance from him).The DMP would take us approx 8 years to pay off according to our figures. My question is how flexible are the DMP payments and what info re salary will CCCS need? My partner is a HGV driver and his wage varies from week to week depending on if there is any overtime.
The figures on the debt remedy, do the CCCS check bank statements to see what we actually spend on mobiles. internet, food etc? My partner has a teenage daughter from a previous marriage who we see, he doesnt pay child maintenance but pays for her phone and other stuff and wants to put say £100 a month into an account for her. Would this be allowed?
Sorry, one more thing, as we were sure we would have to go bankrupt, my partner stopped paying most of his creditors and now HSBC have issued a default notice if he doesnt pay £800 by 13th December (owes abut 8K on CC)! Will this affect them agreeing to the DMP and trying to make him Bankrupt anyhow?Sorry for all the questions! xx

nottoolate

Dancingdebs wrote: »

Sorry, one more thing, as we were sure we would have to go bankrupt, my partner stopped paying most of his creditors and now HSBC have issued a default notice if he doesnt pay £800 by 13th December (owes abut 8K on CC)! Will this affect them agreeing to the DMP and trying to make him Bankrupt anyhow?Sorry for all the questions! xx

not sure about the rest, but its a very very common thing for accounts to be defaulted in a dmp so it shouldnt stop him setting one up.

in fact i think lots of lenders wont agree to a dmp until the account has been defaulted?

Dancingdebs

Thanks, nottoolate. We have finally got our heads out of the sand and trying to get things in some sense of order for the New Year one way or another!

greenwichgirl

Welcome to the world of mse/dfw dancingdebs! I know nothing of DMP's / IVA's etc but I know there are heaps of people who will know lots more to help you but here's offering lots of good wishes to getting things sorted - even just reading here each day helps me feel better and know that I can sort the debt I have.

Dancingdebs

Hi greenwichgirl. Thanks for the warm welcome! I have been a lurker for a while but now Ive got head out of the sand I finally managed to get my details onto the CCCS website last night, was still wide awake at 3am this morning...shattered now though at work!

Dancingdebs

Can anyone else help with my questions on the figures on CCCS Debt Remedy guidelines? I have regular presciptions as have Rheumatoid arthritis and partner also has prescriptions for medication on knee problems that we have to pay for but it will only allow you £20 per month for both of us, I have to spend more thasn that for just mine! Can we put figures in other columns like the Car breakdown (which we dont have) to budget for the extra outgoings, or will this be checked?Thanks for any help xx

tigerfeet2006

With the prescriptions you can buy a 'passport' for 6 months or 12 months which will make them tons cheaper. Just ask in the chemist for a form.

http://www.ppa.org.uk/ppa/ppc_intro.htm

Scarlett.1974

When we did our DMP with Payplan we were just asked how much we spent on what, mortgage, council tax, mobiles, etc etc etc..... we certainly weren't asked for "proof".

It makes sense to be honest with them though. Make sure you do leave yourself enough to 'live on', but you're obviously going to have to make some big changes in your lifestyle if you want this debt paid off sooner rather than later

CCCS are on your side, you need to remember that If they suggest a figure for the DMP which is too high then you can tell them that and suggest a figure you're happy with.

Hope this helps

hypno06

Hi there! Just wanted to say hello and welcome, and well done for taking those first steps towards getting sorted.

I know it is a scary figure - 18 months ago, mine was well into 6 figures, so I am with you on that one! However, you are on the right track now. Keep going - not every day will be productive, and not every day will be easy, in fact some will be bloody hard, but every day is a day closer to you getting debt free, so stick with it.

Dancingdebs

Thanks everyone for your replies. I am looking into the pr-payment prescriptions so hopefully i can make a saving there. It is really scary adding up all the debt, I thought I only owed around 30k and its over 10K more than that..oops. Partner is feeling a little better though as he thought his was nearer the 80k mark and its more like 60k so...We do have large mobile contracts, £35pm each, mine is due for an upgrade this Sunday so going to try for a lower tariff. I noticed that on some of our credit card and loan debt that we are being charged PPI, do I cancel this now or will it automatically be stopped being added once the DMP is in place?

nickiboop

Hi dancing Debs,

Don't get a new mobile cotract! if you really want to do this get a PAYG sim card and only use for emergancies! If you both manage to do this and reduce your spend to say £10 pm that will be an extra £50 to throw at the debt!