DMP for £60k worth of debt...ready to tackle this!

sourcrates

stu12345_2 said:

if he gets a ccj, is it just the total owed he pays back or will court fees plus the creditors solicitors fees be added and at what point and how in the letter before action ( if he prevents a ccj) can a full and final offer be made in the 30 day reply box tick

Total owed plus court fees of course, they don`t work for free.

The LBA is designed so that both parties reach agreement without the need to continue to a claim.

Whether that be a payment arrangement, full or partial settlement is up to the parties involved to discuss.

bravo4_5

sourcrates said:

stu12345_2 said:

if he gets a ccj, is it just the total owed he pays back or will court fees plus the creditors solicitors fees be added and at what point and how in the letter before action ( if he prevents a ccj) can a full and final offer be made in the 30 day reply box tick

Total owed plus court fees of course, they don`t work for free.

The LBA is designed so that both parties reach agreement without the need to continue to a claim.

Whether that be a payment arrangement, full or partial settlement is up to the parties involved to discuss.

Could there ever be a possibility that during the

LBA stage the creditor will not agree to your payment arrangement offer?...

I'm just preparing for the worst outcome with Novuna, in my case I would be offering a repayment of around £300 out of the contractual £550 monthly repayment.

If the creditor does agree to an arrangement during the LBA stage does this mean no CCJ registered?

fatbelly

I think you're over-concentrating on the possibility of court action. It does happen but in a minority of cases, usually if you have ignored them for many years and there is a danger of it going statute barred.

If you are offering them £300 per month there's a likelihood that a court would order a smaller payment so it sould make no sense

Concentrate on your dmp strategy and saving a lump sum on the side

bravo4_5

fatbelly said:

I think you're over-concentrating on the possibility of court action. It does happen but in a minority of cases, usually if you have ignored them for many years and there is a danger of it going statute barred.

If you are offering them £300 per month there's a likelihood that a court would order a smaller payment so it sould make no sense

Concentrate on your dmp strategy and saving a lump sum on the side

Understood - thank you. Just overthinking it all as the first repayment for the Novuna was due today and it has officially been “missed”.

sourcrates

On the Novuna website, in the FAQ`s it states this -

"If you’re unable to repay your loan, we’re here to help. It’s important that you contact our Collections Team on 0344 375 5488. Once we understand your current circumstances, we’ll be able to advise the most suitable option or establish a payment arrangement that is affordable for you. We may ask for information about your financial situation to ensure we put the most suitable arrangement in place.

If you’re experiencing financial difficulties, we may signpost you to a free debt charity called Step Change, who will be able to offer you confidential support".

Notice "affordable" and "Stepchange" are both mentioned, you should be ok.

bravo4_5

sourcrates said:

On the Novuna website, in the FAQ`s it states this -

"If you’re unable to repay your loan, we’re here to help. It’s important that you contact our Collections Team on 0344 375 5488. Once we understand your current circumstances, we’ll be able to advise the most suitable option or establish a payment arrangement that is affordable for you. We may ask for information about your financial situation to ensure we put the most suitable arrangement in place.

If you’re experiencing financial difficulties, we may signpost you to a free debt charity called Step Change, who will be able to offer you confidential support".

Notice "affordable" and "Stepchange" are both mentioned, you should be ok.

Would just like to say, thank you so much for the re-assurance and advice so far.

bravo4_5

Hi again, just thinking ahead…

Is there any info (forum posts/websites) on what type of letters I expect to receive and the terms and names given to them. 

The ones I’m aware of so far are:

- Default Notice
-NOSIA (which I’ve just found out about today)
- Offical default letter?
-LBA CCJ
- Official CCJ letter

I’m unsure if that’s the correct order?

I’m aware I’m supposed to do reach out to arrange a payment plan when the creditors default me but will I get an official default letter, if that’s even a thing? Or is it a case of having to check my credit file every month?

I just don’t want to get issued a default, be unaware of this and then court proceedings letters start.

Thank you

Stateofart

Not to highjack the thread, but have you thought about changing jobs (higher paid/closer to home).  60% of your income is on your mortgage and travel costs...a job change closer could save you £350 in fuel overnight!

bravo4_5

ThereStateofart said:

Not to highjack the thread, but have you thought about changing jobs (higher paid/closer to home).  60% of your income is on your mortgage and travel costs...a job change closer could save you £350 in fuel overnight!

There is the choice to change location but in turn I would have to sacrifice my London weighting. I would get my time back that I would be using to travel but the drop in take home pay and less travel costs would even things out…there would be a lot less job satisfaction at the closer location too!

stu12345_2

you get a default letter saying account closed , credit agency notified.
then the next stage if you don't offer them repayment plan or the plan isn't good enough is a letter before action.