About to begin a DMP with £53k of debt.

sourcrates

Default notice will come in the post, just keep an eye on what drops on your doormat.

Collection activity can vary between the odd text or email, to calls and letters every week, nothing moves very fast in debt collection land.

Don`t hold yourself to deadlines, anything can happen to your debt, it may be sold, it may be assigned to a collector, just wait to see who contacts you, then offer a payment arrangement based on your budget.

wildstyle2019

Ok, thanks everyone. In terms of legal action, once a debt has been handed to a collection agency, would that only happen if I didn't make any payment?

Grumpelstiltskin

wildstyle2019 said:

Ok, thanks everyone. In terms of legal action, once a debt has been handed to a collection agency, would that only happen if I didn't make any payment?

Look legal action is very rare, just check any letters you get through snail mail in case you get a letter before action.

sourcrates

wildstyle2019 said:

Ok, thanks everyone. In terms of legal action, once a debt has been handed to a collection agency, would that only happen if I didn't make any payment?

There are so many variables that could occur, going over them all will just add to the confusion.

Legal action is rare, creditors don`t like dealing with bad debt, so have arrangements with debt collectors to do the donkey work.

Debts can be assigned equitably, or legally, collectors can`t take legal action on equitably assigned debts as they don`t own them, only on legally assigned (sold on) accounts.

Basically the possibility of a court claim mainly only occurs once a debt is sold on, and you continue to ignore the debts new owner for a period of time.

Of course they will be exceptions to this rule, which is why it has to be mentioned, but occasions are very rare.

Creditors must follow civil procedure rules before legal action can happen, so there is always plenty of warning beforehand, as long as address details are all up to date.

This is something you should not concern yourself about unless it happens.

Grumpelstiltskin

Sourcrates I think  your point about address details being correct is very valid. How many times on here do we see people come on when they have found an unknown CCJ and it turns out correspondence was sent to an old address because they hadn't kept their address details up to date?

sourcrates

Grumpelstiltskin said:

Sourcrates I think  your point about address details being correct is very valid. How many times on here do we see people come on when they have found an unknown CCJ and it turns out correspondence was sent to an old address because they hadn't kept their address details up to date?

In theory creditors are only obliged to send correspondence to the last known address on file, however in practice courts expect them to do their due diligence and not always rely on outdated information.

Tracing someone these days is not that difficult, and the onus is on the creditor to get it right first time, although the less unscrupulous debt purchasers out there use this as an excuse to a obtain a default CCJ via the back door. 

But if you don`t want a shock next time you check your credit report, keep your address updated.

andy26599

wildstyle2019 said:

That's super helpful. Becoming less daunting about managing it myself now although my husband is now very concerned about how much it's going to affect his credit file. I wish there was a way of getting more clarification about this. 

I'm not sure how much it affects your partners credit rating. I have a joint mortgage still with my ex wife (can't afford to take me off and won't sell) and was in an IVA for 8 years and I was still able to rack up debts and get another mortgage with my wife.

wildstyle2019

A very belated thanks for your responses (work has been crazy). 

I will just wait to see what the outcome of this default is and then offer a payment I can afford. Hopefully I can do all this via email as I am sick of letters! I will keep you updated everyone. 

wildstyle2019

Another query, how do I go about starting affordability complaints? Is there a step by step guide or instructions anywhere? I know its best to start these after the debts have been sold on but I would just like to start planning. Thank you all. 

sourcrates

wildstyle2019 said:

Another query, how do I go about starting affordability complaints? Is there a step by step guide or instructions anywhere? I know its best to start these after the debts have been sold on but I would just like to start planning. Thank you all. 

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