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£127k of Unsecured debt

Hello, been following this for a while, and have numerous accounts that have stopped paying since end of January looking for accounts to default. Sadly the title is not a typo either.

No defaults are on credit file yet, two notices of default have been sent for accounts with Natwest.

Today I got a letter for each account, from Natwest, to say they were passing the matter to Ascent (some kind of solicitors it appears) to commence legal proceedings against me to recover the debts.

The letter states that Ascent will be in contact by letter to discuss repayment options within the next 14 days.

Is this good, or, bad, I was hoping to avoid CCJ's and Charging orders and go self managed DMP.

I saw posts from Sourcrates that suggested that once the default was on the credit file, you then start to make payments and sort out a plan. Is that incorrect, is that too late for a DMP now?


Comments

  • Welcome to the forum, you are in the right place here.

    Before we can advise you the best way forward we need to see your full financial position.

    Start here  In Debt and Wannabe Debt Free? First Steps! — MoneySavingExpert Forum

    Read through and complete a honest SOA using the link in that thread.

    Format for MSE and copy and paste on here.

    Because of the large amount of debt you could be looking at insolvency but when we see your SOA we can advise you.
    If you go down to the woods today you better not go alone.
  • Thank you for responding. Does that letter mean that a self managed DMP is out of the question?

    Insolvency isn't really an option.
  • Thank you for responding. Does that letter mean that a self managed DMP is out of the question?

    Insolvency isn't really an option.
    It will all depend on your circumstances, if a DMP would last say 20 years then it would be a non starter. That's why we need to see your SOA
    If you go down to the woods today you better not go alone.
  • sourcrates
    sourcrates Posts: 30,611 Ambassador
    Part of the Furniture 10,000 Posts I've been Money Tipped! Name Dropper
    127k is a lot of money, so we need to see what you have coming in, verses what you have going out, to recommend a debt solution.

    Just as a warning some specialist creditors don`t always use debt collectors, and can go straight to legal action if a debt goes unpaid, keep an eye on the post for letters from this "solicitor".

    Any LBA with a 30 day response time, needs dealing with.
    I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter
  • Thanks Sourcrates, none are with specialist lenders, all high street. 


  • fatbelly
    fatbelly Posts: 22,140 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Cashback Cashier
    Thank you for responding. Does that letter mean that a self managed DMP is out of the question?

    Insolvency isn't really an option.
    Not at all.

    That letter means essentially nothing
  • stu12345_2
    stu12345_2 Posts: 1,576 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    looking at your old posts from years ago, you said then you were divorced with a lot of equity in a house and earned £50,000 a year but had £60,000 debt back then.

    What's the financial , asset situation now.

    Christians Against Poverty solved my debt problem, when all other debt charities failed. Give them a call !! ( You don't have to be a Christian ! )

    https://capuk.org/contact-us
  • pdel61
    pdel61 Posts: 983 Forumite
    Part of the Furniture 500 Posts Name Dropper Combo Breaker
    Have you managed to address the issue of what is causing your debt to spiral, in 2013 you said you'd managed to get your debt down from 80k to 28k, which is a great achievement but you are now in a somewhat worse position. A completed SOA would help people give better advice to you.
  • DisabledDan
    DisabledDan Posts: 144 Forumite
    100 Posts First Anniversary Name Dropper
    Hello, been following this for a while, and have numerous accounts that have stopped paying since end of January looking for accounts to default. Sadly the title is not a typo either.

    No defaults are on credit file yet, two notices of default have been sent for accounts with Natwest.

    Today I got a letter for each account, from Natwest, to say they were passing the matter to Ascent (some kind of solicitors it appears) to commence legal proceedings against me to recover the debts.

    The letter states that Ascent will be in contact by letter to discuss repayment options within the next 14 days.

    Is this good, or, bad, I was hoping to avoid CCJ's and Charging orders and go self managed DMP.

    I saw posts from Sourcrates that suggested that once the default was on the credit file, you then start to make payments and sort out a plan. Is that incorrect, is that too late for a DMP now?


    If your debt has not been secured on a property then you can go nuclear as you already have the two promised defaults.

    There are two types of nuclear, tactical is called a DMP where you stop paying all of your debts except car & house, then wait for the debts to be sold and offers at 60% off minimum.

    The decision to use Ascent may be because you have been compliant before or because you have agreed to a charge, it suggests they are confident you will respond to their course of action.

    You can still go DMP just prioritise debts that are secured or where legal action has started.

    The first stages of DMP are 

    Change contact email & phone for free alternatives
    Stop paying 
    Wait for default
    Put what you were paying to service the debt into a new account with a Bank that has no connection to your current bank. 

    The full scale nuclear differs in that you don't just wait for 60% but for the debt to go statute barred because you have nothing to pay with. It can take 6 to 12 years, 99% of mine was done six years from default, once CCJ was obtained in year 5.

    I had plenty of letters threatening this that and the other, including two or three debt solicitors, only one consumer debt actually went to Court for a CCJ, they used an address that was over a decade old.  I paid them zero, even when they threatened a warrant of control and earnings attachments.

    You don't have to provide them with anything about your income or outgoings, except if they do go to Court but I am guessing you will avoid it going to Court.

    I assume you do not want insolvency because you have a house and mortgage, an extremely rapid sale and move might be possible if you have enough equity to downsize to a property without a mortgage, but if one does go to Court then cost of mortgage and host of outgoings can justify a £1 a month payment.  CCJ's last 6 years so in a way it can be easier if they get one sooner as long as you can show you can't afford to pay anything.


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