Debt collectors help

marko83

Hi, 

I am after any advice on my current mess of a scenario of debt. I'm not really sure what to do. I have currently defaulted on all of my unsecured debt about 63k in total, and have buried my head in the sand with it as its all a little overwhelming. Me and my wife are jointly dealing with this although she is having some serious mental health issues, and I feel like I'm drowning, is to work this all out. Our monthly income has decreased with her issues so applied for breathing space with the debt collectors. Moorcroft, capquest and zinc I believe. I have not paid a penny since defaulting and stupidly have ignored the issue. 

Wondering now that breathing space is coming to an end how long it would be until a court order would be placed against me as I have not paid anything for a good while towards debts?

How long a term can a dmp run over, I think just, that I can potentially afford 500 per month towards the 63k is this acceptable or in opinion is it far to low?

I'm confused if an I v a would be better than a deposit but if the monthly payment of 500 would be acceptable for that level of debt.

Can you enter into a dmp and still get taken to court if you keep up with payments?

What if the debt companies don't accept the dmp proposition?

I sincerely apologise for the length of post and sporadic questions. I have just opened 6 letters today from moorcroft advising that my breathing space is ending, and has sent my anxiety levels through the roof once more.

Thank you for any advice given. I hope to join some of you lovely people on the road to debt freedom.

sourcrates

Hi,

Question, are you a homeowner or do you rent or something else ?

Bad debts usually go to debt collection, not court at this stage.

A DMP can run as long as is necessary, although you don`t want to be in debt forever, most folk pay a certain amount per month whilst saving an emergency fund, this is then used further down the line to make full and final settlement offers, thus reducing your time in debt.

Usually if your making payments, creditors are happy with that.

If they don`t like the amount your paying, and you can`t increase it, they just sell the debt to someone else.

Don`t worry about the DCA`s, just write and say your still considering your options, and will contact them again in 3 months.

I would advise you to read up on debt collection practices, and how long the process can be, nothing happens quickly, so try to relax.

fatbelly

Breathing Space has formalised something that worked better when it was informal!

Why have you had six letters from Moorcroft? How many different debts are with them?

You're aware that they are just a debt collector? In the normal way of things they just run through their standard letters then send the debt back to the owner. 

Sourcrates asks the important question -  are you a homeowner or do you rent or something else ?

marko83

Thank you both for your responses. I am a home owner with a mortgage and everything up to date with that side of things.

As for the debt collectors it has been 3 months worth of a break from letters phone calls. The 6 letters are the 6 individual debts I now have with moorcroft, and have advised me all 6 are now expected to begin paying which I totally understand.

I guess the bit that I'm worried about is I don't want it to go to court but not quite in a position to work out what I can afford.

Would debt collectors accept a smaller payment l, almost a token gesture to say I'm committed to paying just don't have all the answers at present?

sourcrates

Lets just get one thing crystal clear, they are debt collectors, collecting non priority, non essential debts, they get what ever you choose to pay to them.

They can expect whatever they like, your budget and available disposable income decides how much they get, and when they get it, your in the driving seat, not them.

If you can only afford token payments, then that is what they get, as long as you can back up your figures, either by using there online budget planner app, or a good old paper copy, showing what you can afford to pay them, you can avoid Moorcroft being silly with you.

Remember you are under no obligation to share anything with these companies, what you choose to share is up to you, it does not have  to be an altogether accurate representation of your financial position, no one will be looking over your shoulder or checking the figures, so if a £1 payment per debt per month, is all you can afford, make your budget show as much.

GreenCat80

@marco83 it’s going to be just fine. I know it’s scary at first but sorting this out is a good thing and I bet you’ll sleep a lot better in a few weeks once you’ve got everything straight. 

I had about £16k of debt across 5 different accounts. I paid them all £1 per month for 15yrs and nothing bad happened. I’ve recently been able to negotiate settlement deals with them and closed the accounts, so it doesn’t have to be forever. Well done for tackling this, I’m sure you’ll get some great advice on the best way forward for you. Good luck. Xx

EssexHebridean

So much good reassuring advice already! 

Do you think it might help you to put together your SOA (Statement of Affairs) and post that in here so we can cast an eye over it and see if we can identify any savings that you may have missed? with your monthly income having decreased as well it really is important to make sure that your budget is worked out accurately as otherwise the risk is that you will find yourselves needing to fall back on credit again which is obviously the last thing you want right now! I assume you re clear on the reasons why the debt has accrued in the first place and that the issues that lead to it have now been resolved? 

Exodi

sourcrates said:

Remember you are under no obligation to share anything with these companies, what you choose to share is up to you, it does not have  to be an altogether accurate representation of your financial position, no one will be looking over your shoulder or checking the figures, so if a £1 payment per debt per month, is all you can afford, make your budget show as much.

I know you, along with most on this forum, have a particular disdain towards DCA's, however, suggesting that someone should misrepresent their affairs is, in my opinion, going a step too far.

Exodi

marko83 as others suggest - time heals all things. My partner and I have both been in debt in the past, now we're in a great position, it's just about dealing with it and moving forward.

sammyjammy

Exodi said:

sourcrates said:

Remember you are under no obligation to share anything with these companies, what you choose to share is up to you, it does not have  to be an altogether accurate representation of your financial position, no one will be looking over your shoulder or checking the figures, so if a £1 payment per debt per month, is all you can afford, make your budget show as much.

I know you, along with most on this forum, have a particular disdain towards DCA's, however, suggesting that someone should misrepresent their affairs is, in my opinion, going a step too far.

I have to disagree, these companies buy debts for a pennies in the £1, they are unscrupulous and in many cases will lie and tell you anything to get you to make a payment.  Morals don't come into it so why should they with the customer.

Exodi

sammyjammy said:

Exodi said:

sourcrates said:

Remember you are under no obligation to share anything with these companies, what you choose to share is up to you, it does not have  to be an altogether accurate representation of your financial position, no one will be looking over your shoulder or checking the figures, so if a £1 payment per debt per month, is all you can afford, make your budget show as much.

I know you, along with most on this forum, have a particular disdain towards DCA's, however, suggesting that someone should misrepresent their affairs is, in my opinion, going a step too far.

I have to disagree, these companies buy debts for a pennies in the £1, they are unscrupulous and in many cases will lie and tell you anything to get you to make a payment.  Morals don't come into it so why should they with the customer.

As I said, many people on this forum have an obvious 'disdain' towards DCA's, as you clearly show. Please don't think I'm out here defending their actions; as you said, they are 'unscrupulous' at best.

But two wrongs don't make a right, and I'm not sure we should actively encourage lying and falsifying of financial circumstances - it just doesn't feel very 'MSE'ly... and not just because of morals, what would happen if a CCJ was pursued and it all come out in the wash that financial information had been falsified?

We shouldn't let hatred towards DCA's cloud judgement..