JD Williams/paypal credit debt

kimwp

@grace68

If you decide on a dmp, you need a bank account unconnected with your debts so savings can't be used to pay off debts and also it's a good idea to stop paying the non-priority debts (and completely ignore the creditors responses to this) to get them to default:

A debt with a default date stays for six years from that date. You may have paid it in full, made a full and final settlement, not paid anything to it, or still be making payments… none of these matter, the debt is still going to drop off after six years.

A debt with no default date stays on your record for six years from the date when it is settled. This applies whether it was settled in full or partially.

It's definitely worth talking to one of the charities (who will not charge you anything), like stepchange, but bear in mind they will try to get you on a payment plan as soon as possible, which may result in defaults not being applied. NB, some of the companies that will charge you have names that are similar to the charities, take care to contact the right one.

While waiting for the defaults, it's a good idea to save the payments you would have paid into an emergency fund as credit will be harder to get if you have an unexpected large spend.

I'm not sure what the equivalent approach would be for a DRO.

fatbelly

Pretty much the same for a DRO. Unconnected bank account, stop paying non-priority debts, save £90 for the fee.

Your savings go into an emergency fund. These count as assets  and you can still enter a DRO with £2000 assets.

grace68

i have no debts connected to my bank account, no overdraft, loans etc. I think the main thing i am wondering is how long does it take for JD williams/paypal to default if i stop making minimum payment? Are we talking months? 

I was hoping to avoid a DRO just because i am a school governor and i think this would prevent me from being one, at least that is what the trust rules my school is in seem to say? Does same apply to DMP, i am not a treasurer or trustee.

fatbelly

Defaults should be 3-6 months.

I wasn't aware of that re school governors. I'll try to check.

Edit: I did find something.

6.23 School Governance

An undischarged bankrupt is not disqualified from holding office, or continuing to hold office, as a school governor1.

A person is disqualified from holding or continuing to hold office as a governor of a federation if that person has been made bankrupt or sequestration of that person’s estate has been awarded and (in either case) that person has not been discharged and the bankruptcy order has not been annulled or rescinded or a moratorium period under a debt relief order applies in relation to that person2.

1. School Governance (Constitution) (England) Regulations (SI 2012/1034), Schedule 4, Regulation 17

2. Federation of Maintained Schools (Wales) Regulations (SI 2014/1132), Schedule 7, Para 6

kimwp

grace68 said:

I was hoping to avoid a DRO just because i am a school governor and i think this would prevent me from being one, at least that is what the trust rules my school is in seem to say? Does same apply to DMP, i am not a treasurer or trustee.

I'm not an expert in this area, but according to this link, there is a bankruptcy register and an insolvency register for those on DROs and IVAs. Your name won't appear on a similar list with a dmp - it's a non-contractual agreement with your creditors.

https://www.gov.uk/search-bankruptcy-insolvency-register

EssexHebridean

Hi OP - if you're not in Scotland then how come you're not paying water rates? These are included in CT payments north of the border hence my assumption that must be where you were - albeit that was phrased as a question. 

If the water and the Contents insurance are both just missed from the SOA (easy to miss odds and ends - this is why most people end up redoing SOA's multiple times!) then once discounting the debt payments being made currently that probably nudges you towards a break even point, so some small savings may well make you a good candidate for a DMP as suggested by fatbelly. Remember that anything else you've put in the SOA as being budgeted for where currently nothing is being set aside also makes a difference to the money you really have spare and you'll need to account for that, too. 

The groceries question is tricky I agree - I think you need to write a list of "common ground" foods that all in the house will eat and meal plan from that initially. I'd also suggest that if you're buying some branded items then it might be possible to do some sneaky re-packaging of store own brands which will work out cheaper, without those who will only eat the brands even being aware. In the circumstances it might well be that you'll have to continue doing that as well - usually we suggest once it's been established that the swaps haven't been noticed telling the individuals about them, but that may well not be practical here. 

Have both you and the others in the household done the benefits checker to ensure that there is nothing else that can be / should be being claimed? Is there anything additional that you can claim as a result of being a full-time carer for example? I'm wondering whether an appointment at your local CAB might be of help on this one. 

kimwp

EssexHebridean said:

Hi OP - if you're not in Scotland then how come you're not paying water rates? These are included in CT payments north of the border hence my assumption that must be where you were - albeit that was phrased as a question. 

She put a note at the bottom of her SOA when she posted it to say that water (and insurance) is covered in her rent and the way you phrased "you're in Scotland", came across as a statement rather than a question. I did think it odd that you seemed to have drawn that conclusion, but pondered if you knew her from the familiarity of some of your other comments.

EssexHebridean

kimwp said:

EssexHebridean said:

Hi OP - if you're not in Scotland then how come you're not paying water rates? These are included in CT payments north of the border hence my assumption that must be where you were - albeit that was phrased as a question. 

She put a note at the bottom of her SOA when she posted it to say that water (and insurance) is covered in her rent and the way you phrased "you're in Scotland", came across as a statement rather than a question. I did think it odd that you seemed to have drawn that conclusion, but pondered if you knew her from the familiarity of some of your other comments.

Doh - yes, it's even in the bit I quoted isn't it!  It was definitely a question though! I've edited my post above now to cross through references to water to avoid any further confusion. 
As for "familiarity" - not sure quite what you  mean to be honest - as far as I'm concerned it was a pretty normal response to an SOA. I do try to use quite friendly, non-starchy wording in these circumstances though - experience and feedback over the years suggests that this is often appreciated at a time when people are already feeling pretty stressed and anxious.  



OP - are you sure that the contents insurance is definitely included in the rent? This would be quite unusual, although far from impossible I guess - might be worth just double checking though as it's not something you want to risk being without IMO! If it is then that's great news - one thing less to worry about renewals on, too! 

grace68

hi yes, I have a council house, paid weekly by direct debit, and included in that payment are my water rates (council have a deal with water company) and my contents insurance. ( i choose to have the insurance through a council scheme, worked out cheapest). 

I am in England

we are currently moving my daughter, who is 30 , from DLA, low rate to PIP, where she should be entitled to a higher rate and if she gets as well as more income gets more universal credit for me, as the non dependent deduction for rent stops, plus makes applying for a bus pass etc a lot easier. But i understand this process takes  months (CAB are helping me).

kimwp

EssexHebridean said:

kimwp said:

EssexHebridean said:

Hi OP - if you're not in Scotland then how come you're not paying water rates? These are included in CT payments north of the border hence my assumption that must be where you were - albeit that was phrased as a question. 

She put a note at the bottom of her SOA when she posted it to say that water (and insurance) is covered in her rent and the way you phrased "you're in Scotland", came across as a statement rather than a question. I did think it odd that you seemed to have drawn that conclusion, but pondered if you knew her from the familiarity of some of your other comments.

As for "familiarity" - not sure quite what you  mean to be honest - as far as I'm concerned it was a pretty normal response to an SOA. I do try to use quite friendly, non-starchy wording in these circumstances though - experience and feedback over the years suggests that this is often appreciated at a time when people are already feeling pretty stressed and anxious.  

It wasn't a criticism.