Just looking for some clarity on DMPs

sourcrates

If debts get sold, which is quite likely, you just continue with the write off requests with the new owner, the same advise applies no matter who owns what.

They are just as likely to comply as the original lender would have.

sonnet72

So, to be clear, do I stop paying altogether, write to them and then deal with each response one at a time? 

RAS

You do have a basic bank account into which your carer's allowance is, unrelated to any of your creditors? If so stop paying them all. If not, sort it ansd stop paying those you can immediately.

And get your children's benefits paid into another account.

You need to build up a record of non-payment, but in a few months your basic write off letters might work, backed by some evidence.

Based on others' experiences, they may say no, so you just don't, keep saving up your income towards an emergency fund and try again in another 6 months. It's not an instant fix, but it allows you to start living like a human being. I recall that it took over two years for another OP to get everything written off. 

Meantime, you are going to have to learn to live with uncertainty and to resist the temptation for impulsive action. This a a long game not a sprint.

sonnet72

I read somewhere on here you pay a token £1 into each repayment account , is that better than 0

sonnet72

My carers allowance is in a current account but not related to my debts. I’ve opened a basic account, waiting for stuff to come thru post then I’ll transfer the benefit money into that

Grumpelstiltskin

sonnet72 said:

I read somewhere on here you pay a token £1 into each repayment account , is that better than 0

No Stop paying everything, paying £1 just prolongs the agony, you have to forget what is best for your creditors and do what is best for you.

RAS

sonnet72 said:

I read somewhere on here you pay a token £1 into each repayment account , is that better than 0

Paying £1 per month means that you will get an AP marker on your credit record every month. AP markers wreck your credit record for 6 years after the debt is paid off. 

Defaults fall off your credit record 6 years after they are issued, regardless of whether you pay off the debt or not. If you want clear your credit record faster, save up those £1s towards a future full and final settlement after the debt defaults and is sold on.

And by acknowledging the debt each month, it becomes impossible for the debt to become state barred, as it would after 6 years non-payment.

You might prefer to minimise the length of time your credit record is damaged, and if realistically you can't pay more than £1 per month, at least concentrate the effort on clearing one debt with a full and final. And hope the others become statute barred, or are written off.

 

[Deleted User]

Just came across this thread - not my area of expertise but will the new DRO limits from 28th June be of any assistance in this case. The op appears reluctant to go down the bankruptcy route. 

kimwp

sonnet72 said:

The advice was £5 -he was just a run of the mill solicitor that I paid a fiver for at 4am when I couldn’t stop thinking about my debt

thank you Grumplestiltskin I have realised that insolvency is my only option but I’m just going to seek write off first- using the arguments that:
 
i can’t afford to pay back

 I have mental health issues that are historic and are just getting worse

 I have vulnerable dependents 

There’s an issue of irresponsible lending on their part ( this is where I need more advice whether to include this in my argument or not) 

i have no assets and have not contributed financially to my home enough to claim beneficial interest

 by selling my debt, with this knowledge would be exacerbating my situation

 writeoff best for everyone

Multiple arguments dilute the strength of an argument. My advice is to stick to these (expanded as below)-

--------

Very low income and have now depleted savings paying the debt, now have no assets and am unable to continue paying off the debt

 I have mental health issues that are historic and are just getting worse due to the weight of the debt

 I have vulnerable dependents 

-------

Personally I wouldn't go into not having a beneficial interest in the house, that just raises questions.

sonnet72

Ok I’m setting my doctor today to get a mental health evidence form filled in. I take it he HAS to fill in the bit where it asks who the creditor is, I know i can use it fit multiple creditors regardless but was thinking if he left it blank I could photocopy and just put the name of each creditor on each copied form. 

Anyway then I’m just some admin to change bank accounts then I’ll send out the letters, even though I haven’t missed any payments to date. 

Wish me luck!