Can’t carry on like this

Roseyposey88

Hi all,
I have around 45k of debt in credit cards and personal loans. All are you to date however having lost my job and being in a job where I am now earning less than half what I used to, the time has come for me to be honest and stop borrowing more money to try and keep up to date with payments. 

Having read threads on here my plan is to stop paying all, wait for defaults and then organise my own DMP. I will also be sending affordability complaints. 

My question really is, as a homeowner with a mortgage, can any of my creditors make me bankrupt or put a charge on my house?
my other question is in terms of running my own DMP can this literally be whatever I deem affordable? 

Thanks so much everyone, finding this forum has given me such a feeling of relief and has already been so helpful in working out my plan.

Roseyposey88

All are up to date that should have said! Oops!

GMSstockton

If you do an IVA this is only for unsecured debt.  If you go bankrupt they can take the property in to account.  I have wrote letters to courts and clients to defend this but you must be making the secured loan  payments.  Obviously if you have a secured loan/ mortgage and you don't make that payment then they will repossess.  Having a DMP OR IVA and defaults on your credit file will mean any future borrowing will be difficult with lenders will be difficult.  You should try to avoid this where possible But sometimes it needs to be done.

Roseyposey88

Thank you - I ideally want to avoid IVAs and bankruptcy and stick to a dmp/token payments and then hope to negotiate full and final settlements, none of the debts are secured except my mortgage which I will continue to pay. 

Floss

Roseyposey88 said:

Hi all,
I have around 45k of debt in credit cards and personal loans. All are you to date however having lost my job and being in a job where I am now earning less than half what I used to, the time has come for me to be honest and stop borrowing more money to try and keep up to date with payments. 

Having read threads on here my plan is to stop paying all, wait for defaults and then organise my own DMP. I will also be sending affordability complaints. 

My question really is, as a homeowner with a mortgage, can any of my creditors make me bankrupt or put a charge on my house?
my other question is in terms of running my own DMP can this literally be whatever I deem affordable? 

Thanks so much everyone, finding this forum has given me such a feeling of relief and has already been so helpful in working out my plan.

When I started my DMP just over 14 months ago I had over £34k of debt with a mortgage and nobody has gone down the legal route.

I would recommend cancelling all direct debits / standing orders to your creditors, filling out an SOA (link in stickies) & posting on here for money saving suggestions as your income has dropped. Just keep paying the mortgage as that is a priority debt.

While you wait for your debts to default, save as much as you can into an emergency fund. When your debts have all defaulted, then you can offer each one an amount of your choosing.

RAS

Pay priority debts only, mortgage, CT, insurance, utilities.

Then do an SOA to nail down what you might have to pay non-priority debt going forward.

Roseyposey88

Thank you both 

Floss - were your creditors quite accepting of your DMP then, did you manage this yourself or go through someone like step change? 

I read somewhere that if the DMP is paid up in less than ten years it is likely acceptable to creditors.

Floss

I sorted mine myself but used the NEDCAB structure & templates (Citizens Advice). I stopped paying, then wrote to them all to say this is what I can afford. 

Grumpelstiltskin

Roseyposey88 said:

Thank you both 

Floss - were your creditors quite accepting of your DMP then, did you manage this yourself or go through someone like step change? 

I read somewhere that if the DMP is paid up in less than ten years it is likely acceptable to creditors.

Rosey they have 2 choices when you tell them you will be paying them £X they either accept the money or they return it to you saying ' we don't accept this amount'

Which do you think they will do?

sourcrates

Debt management is no problem to most mortgage payers.

Pay your priority debts, and what you have left distribute amongst your non essential creditors, 1000`s work there finances this way, creditors normally have no issues with it, if they do, they simply sell the debts to a 3rd party who will accept.

Debt management is a well trodden path for lots of people, most have no issues with any of it.