DMP?

ES19901990

fatbelly said:

So yes a debt management plan is one possibility

An IVA is another.

A charging order can only be obtained after a ccj, coming after a court claim coming after a preaction protocol letter

If it is a solely owed debt secured on a jointly owned property then it gets recorded as a restriction not a full charge.

Business debts are sometimes pursued more aggressively than personal debts. Which lenders are we talking about here?

Could I also ask about CCJ's Please. As I have multiple debts would I have multiple CCJ's or would they be combined? Could I work out an affordable payment plan for each CCJ?

Grumpelstiltskin

The chance of you getting multiple CCJs is practically zero.

As long as you read any letters before action ( not threatening texts, E Mails ) and then contact the creditor ( with help from us ) it is unlikely you will get any for your personal debt, business debt may be different.

You are worrying about things that might or might not happen in the future, concentrate on now.

RAS

Agreed. Concentrate on now. And slow down.

You need a new basic bank account to start with, unconnected with any bank to whom you owe money. If you have any joint accounts you need to severe the arrangement. Even if it means your partner becomes liable for any overdraft, as that protects their credit record.

An IVA isn't going to do much for you long term as you will be expected to release equity in year 6. Traditionally you'd pay an additional year, but some IVA providers now tie you into a very expensive secured loan at the end.

Once you stop paying the debts, you put that money aside in an emergency fund. If you go to a debt charity, they will require monthly payments immediately. We advise to wait until the creditors have issued defaults. 

If you run your own DMP, you decide whether to pay off a few small creditors whilst making smaller payments to the bigger fish. 

In a few years time, you'll get offers of reduced settlement figures. That's when your emergency fund and family help come in. Don't assume anyone will accept a reduced settlement initiated by you in the early years.

ES19901990

Thanks guys really appreciate your help. Like you say think I need to stop worrying about what might never happen.

Just want it all planned in case it does. 

So if I enter a Dmp if needed and pay affordable amounts I should be fine to not get CCJ or face repossession?

sourcrates

ES19901990 said:

Thanks guys really appreciate your help. Like you say think I need to stop worrying about what might never happen.

Just want it all planned in case it does. 

So if I enter a Dmp if needed and pay affordable amounts I should be fine to not get CCJ or face repossession?

Debt management is a well recognised, informal way to repay your debts at an affordable rate.

99% of main stream lenders/debt buyers find that a perfectly acceptable way for you to repay your debt.

However, there are certain creditors who can disagree, and I must stress they are in the minority, and are few and far between, but do exist, some credit unions for example, or certain peer to peer lenders, prefer to use the courts to ratify a formal repayment plan via a CCJ instead, and as long as payments are stuck too, no further action can or will take place.

If non of those are creditors of yours, you should have no bother with debt management whatsoever.

fatbelly

Business loans could be in the list for awkward creditors, which is why I asked who yours was with.

You said Hsbc.

Hsbc are not known to be difficult.

Was the loan secured in any way?

ES19901990

Hi The HSBC was an unsecured business loan. It does say in the documents though they may pursue a charge on my house if failure to make payments.

fatbelly

Either this is secured by a charge or it isn't. If it doesn't currently appear on your Land Registry entry, then it isn't.

They would have to go down the court route that I outlined earlier. ...and take a commercial decision that this was worth the time and expense.

I guess the key word is 'may'

ES19901990

Hi I have wrote the exact wording here for you

'bring legal action to recover the loan which could include asking a court to order that, if property you own (e.g your home) is sold for any reason, some of the sale proceeds are used to repay this loan'.

It also says

'but we'll give you advance notice, and if the problem can be fixed, the opportunity to fix the problem before taking any of the above steps.'

This sounds to me as if a payment plan would be an option for them?

Once any sort of loan is defaulted on does interest stop being added?

RAS

There are two main advantages of defaults

1. You know when your credit record will improve
2. Interest and charges crease to be charged. So what you pay reducers the debt owed rather than being eaten up in interest.

I'm not sure about the situation where interest is rolled up into the initial loan. I'd hope a complaint would see most of that refunded.