withdrawal of credit due to DMP/IVA?

EssexHebridean

To successfully clear debts and then stay debt free moving forward, you need to learn to budget, learn about having an emergency fund - and only using it for genuine unforeseen emergencies - and learn to live without any credit for day to day living. The time that it has been put in previously may have been a bit blunt, but the fact remains - if you are still trying to think of ways to have credit open to you and available to use, you’re not ready for the process yet. I appreciate that you just want a straight answer to your question - but it’s not a question which can be answered with the assurances you want, in all conscience, and so we would be remiss in just reassuring you that a DMP and use of credit are happy bedfellows - they aren’t. 

If you’re ready to work towards your debt free future, then the advice is all out there to be  taken and gained from.

london1973

ok fine, but bluntly without having to lay your life story on the table to justify your situation you are going to be judged and criticised.. and that is plain wrong, especially when all you are looking for is a simple answer to a simple question 

Judge when you know the facts, if you don’t, then don’t

EssexHebridean

There is no judgement. Your first post outlines a situation and asks whether you are missing the point - which you are. The point of a DMP is to leave you debt free - the point of the process is to teach you to budget to live without needing to use credit - I use the word needing specifically. Whether you choose to use credit again once you are debt free if Ps entirely your call - but the DMP process should mean that any future credit is a choice not a necessity.

In a subsequent post you say you are trying to understand things - which people are trying to help you with. 

There can be all sorts of reasons why someone goes through bankruptcy. There can be all sorts of reasons why someone is considering a DMP for £40k of debt. There can even be all sorts of reasons why someone might be considering a DMP for £40k of debt a few years after their previous bankruptcy has dropped off their file - and certainly, not all those reasons would indicate poor budgeting - but someone considering a DMP in those circumstances and still suggesting they want to keep lines of credit open to them, that’s a huge red flag. 

Rob5342

DMPs are informal arrangements, you just make arrangements to pay each debt with the creditor. Any bank is free to make decisions on credit they give you based on what they see on your credit report and other factors. They could decide to withdraw your credit whether you are on a DMP or not.

I echo the comments above on wanting to maintain access to credit and I suggest that you consider them very carefully. I don't think there's any judgement, lots of people here have been in similar situations and it has taken them a long time to get out of it, and they are just very keen to help people avoid the same mistakes they made.

sourcrates

Lenders will occasionally do a search of your credit file, and if they see missed payments to other creditors, they may withdraw lending facilities that they are offering you, it won`t always happen, but it is a distinct possibility.

Sometimes the written word may appear to be judgemental in nature on some posts, myself and my fellow ambassadors on this board in particular, are very aware of this issue, given the nature of the topic we are discussing.

But occasionally the truth can be hard to accept, we see posters who got into debt numerous times, and still display the same bad money management skills as before.

Advice is almost always given in good faith here, most have been where you are, and come out the other side, they just don`t like to see others continue making bad financial decisions that could lead them to yet again fall back into debt.