Starting DMP - bailiffs advice?

NotMyName

Hi all

I'm starting the process of a DMP (£40k unsecured debt). Opened a new bank account not associated with any of my debts. Was hoping to get as many defaults before starting payments, after reading lots here. 

However, my dad is concerned that I own my car outright (value around £16k) and that any one of my creditors could call in the bailiffs and the could take my car. 

Can this happen? Thanks

Grumpelstiltskin

Bailiffs would only appear if you had a CCJ against you and didn't pay it. Do you have a CCJ?

Now it is possible but unlikely you could get debt collectors knocking at the door, they have as much authority as the postman, you just tell them to go away.

Rob5342

Bailiffs are a last resort and there is a process that has to be gone through before they are appointed. First a creditor would have to get a ccj against you, if you failed to make the ccj payments then the creditor could go back to court to get a bailiff appointed. Courts decide the ccj payments using similar criteria to how dmp payments are worked out, so a creditor is unlikely to want the cost and hassle of court action when they'd only end up receiving the same payments anyway.

If you are making payments then you don't have much to worry about. It's unlikely the creditors would apply for a ccj, and even if they did the amounts would be the same as your dmp payments so you should be able to make them. The only real chance of a bailiff coming is if you.dont make any payments whatsoever.

Debt collectors can come to your house to talk to you but it's not very common. They are not bailiffs and have no special rights, it's no different to you going to your friends house and asking for the £20 you lent them.

People often don't understand the  process and debt collectors prey on this and try and frighten people into paying by mentioning things like "doorstep visits" and "further recovery action" 

RAS

Do make sure that you keep you Council Tax payments up to date. Debts there can lead to bailiff visits and clamping, additional fees etc, although you'd get the car back by paying it all off.

And keep up to date on rent.

Resolvecall and the like have as much power as next door's kitten.

"Further recovery action" generally means that their computer is programmed to print another letter in x weeks if you don't get in touch.

Rob5342

RAS said:

"Further recovery action" generally means that their computer is programmed to print another letter in x weeks if you don't get in touch.

Yes they try and imply it's something serious to try and scare you, but its just means you are still on their automated chase list. If you've got a DMP in place that's taking care of it then you don't need to worry about that kind of phrase.

NotMyName

Thanks everyone for the reassurance! I will always pay my priority bills, so that’s fine. I think my dad just got spooked. 

I completed a DMP starting in 2008, when I was really impacted by the credit crunch, but had cleared it by 2013. Just checking the process hadn’t changed much. 

Unfortunately divorce, single parenting, and mental health issues have led to me wracking up unmanageable debts. It sucks, but better to take action than keep drowning !! 

Rob5342

DMPs usually go quite smoothly if you maintain the payments. In my experience lack of action by the creditor is much more of a problem than action from them. I stopped paying a virgin credit card to try and get it to default but after 10 months they still haven't defaulted it.

R.j.Belcher

I am just over a year into a DMP do not worry. You will get lots of threatning letters from lenders talking of massive consequencies of not paying etc, ignore them they are standard tactics. If you pay your DMP then there is unlikely to be any issue. As long as you are paying a decient amount each month you wil be fine. I have £30k deby and pay about £320 a month, debt free in 2031.Although I am still waiting for one CC (Fluid ) to default me!
Rob

sourcrates

Bailiffs are seldom used for consumer credit act debts, this is why we have a debt collection industry.

Creditors may go to the expense of obtaining a CCJ for non payment, but these are rarely enforced further.

Bailiffs usually attend for unpaid council tax or personal debt to an individual or unpaid bills, consumer credit debt collection is left mainly to debt collection companies to deal with.

As long as you are making payments, no further action will be taken.