Thinking of DMP

Limana68

HI there
Not sure if anyone can help!
I have debts of approx £36, 000:eek: and we are struggling to pay for them, and am thinking of a DMP. The thing I am worried about is the house, as we jointly own it with my brother as our elderly mum lives with us, we all clubbed together for it.
Will being on a DMP mean we could get a charging order put on the house( all our debts are unsecured at the mo) asI dont want my brother involved and worrying about me.
WE have only about £20000 in equity in the house.
Have tried a getting a loan to pay off debts but was refused.
Thanks for any help, am so worried and feel scared to ring CCCS etc at the mo...........................

Li

Limana68

Also, we had to miss credit card payments last mth and also a couple of direct debits got refused so have been getting tel calls non stop from various companies............. stress stress stress..........

hooby_groovy

The companies that you have the unsecured loans can get a charging order against the house, but they don't always do so and if the DMP plan is handled professionaly chances are that they may not.

My advice would be to take the plunge and get in touch with CCCS or Payplan, either will take those steps and will arrange with your creditors to repay the amounts in small installments.

The upshot will be that the phone calls will stop, the downside will be that your credit rating will be shot to pieces (but as you've been rejected for a loan that may already be the case).

The credit card companies will almost certainly mark your cases as defaults and that will be on your credit record for 6 years, they will probably also sell-on your debt to third parties, but at least your will be managing your debt.

Get in touch today and get the ball rolling.

Good luck with it all and Happy Christmas

hitback

A DMP is the best thing we ever did! The phone calls and letters stopped and we can sleep at night! At the end of the day, you are halfway there by facing up to the debt, and there are people who can help / support and advise you on this. We dealt with CCCS who have been great, and are only ever a phone call away when we've needed advice. We know our credit rating is non existent, but at the end of the day at least the debt is moving in the right direction ...DOWNWARDS!!!

furrypaws_2

I've been on a DMP since January this year - it was such a relief to stop having to use credit cards to live. I've had threats of a charging order, but they never materialised.... I think the best thing to do is not to panic when you get letters - they try to frighten you to make you find the money (although I don't know where they think you'll get it from!). As long as you stick to your monthly DMP payments you should be fine.

I looked into the charging order issue in detail as I was terrified when I got my first letter. Even if you did eventually end up with one, they can't force you to sell your property. It just means that if you do, your debtors have first call on any equity - which I think is quite fair.

Sea78

I would agree - the DMP sounds a good planfor you and I have no regrets about ours. There is the risk of a charging order, but they can't force to sell the house and also if you keep up the agreed payments it might never get to that stage,. I would recommended ringing CCCS asap and asking for further advice on this all.

Limana68

Thanks so much for your replies!!
Its great that I am not alone............
previously hubby has not been keen on a dmp and has now realised that we need to do something so thats a start
. My brother lives abroad, so dosnt live with us, so thats no problem, things have got worse this yr since we got our house so my mum could live with us and now hubby is her main carer so cant work full time, so I am main breadwinner...........and we have 2 kids, just so much going on, and now financial stress................ I will pluck up the courage to ring cccs as thats the firm that I hear good things about.
How come none of went down the IVA route? as we are thinking of that aswell.
Anyway, any more experiences please tell!!


Li xxx

Gemmzie

With an IVA they can sometimes take valuable assets in the fourth year from what I understand, we didn't want to risk the house as we have quite a bit of equity.

In_debt_5

We have been on a DMP with CCCS since March and it is the best thing we have ever done. I just wish we had done it sooner.

There has been a couple of tough months whilst we have been agreeing repayments with our creditors but once CCCS told us our rights and helped us to construct a manageable budget I talk to them and my attitude now is they can only have what we can afford. At least our debts are going in the right direction.

We had our first threat of a charging order on the house a couple of weeks ago. When I called CCCS to understand exactly what this meant I felt much better. They can't force you to sell your house so it just means they have a right to the money if you do sell it, which if we ever did seems fair anyway.

hitback

We've received a solicitors letter today demanding payment of a £5k overdraft together with £500 costs on behalf of Nat West, or they will apply for a CO! I've written and disputed the debt as we have paid off over £750 from the intial £5k and also had our recalim of bank charges put on hold pending the test case. I spoke to CCCS about CO's and they said the same as In debt above, so I'm not worried! I've learned from this experience that if at any time you are worried about letters or threatening calls, get advise and prepare to fight!!!

Limana68

Well I rang payplan but they are closed for Xmas, so have filled in the online form so will wait for tel call!!
Just not sure which route is best as most of the debt is in my name and my hubby has a credit card debt of 5K. So do you think just I could arrange to go on a dmp/Iva or will they need us both to go on it??

Also our mortgage is with Abbey, and so is one of the debts( loan) so am worried about them getting funny re the mortgage, we also have a bank acct with Abbey so will have to change bank accts! God its such a complicated mess.

Li