Moving direct debts to a different account for them to default

newbegin23

Rob5342 said:

Only your property could be included in any action and even then it's extremely unlikely if you are making payments. 

There are lots of things that could happen in theory but they are a long way down the line and is you make payments you'll get nowhere near them. Original creditors normally just sell the debts on instead ot taking legal action. The companies that buy them do it as an investment, they buy them at a small fraction of the debts value with the intention of making a return over a few years. Even if you make what seems like small payments that can be a nice little esrnet for them so they have little incentive to spend time and money on legal action which would probably only result in them getting to the same paymentz anyway. 

Rob5342 you have been my guiding shining light, thanks for responding to all my questions so promptly, I haven’t even embarked on this journey yet and you have made me feel so better already. 

Could the property be at risk even though i don’t own it? I know now thats waaaay down the line. 

Do you know of any reason why a DMP wouldn’t be accepted?

have a nice relaxing Sunday 

Rob5342

I'm not a debt adviser or anything, just someone who has been through the process. As far as I know it couldn't be at risk, but that would be so far down the line its not worth thinking about. 

DMPs are informal so there is no accepting requuired by anyone, you just pay what you can afford and if they don't like it they'll sell it on to someone else. Nothing is 100% guaranteed but as long as you are paying something then virtually all of the time it will go smoothly. 

newbegin23

Rob5342 said:

I'm not a debt adviser or anything, just someone who has been through the process. As far as I know it couldn't be at risk, but that would be so far down the line its not worth thinking about. 

DMPs are informal so there is no accepting requuired by anyone, you just pay what you can afford and if they don't like it they'll sell it on to someone else. Nothing is 100% guaranteed but as long as you are paying something then virtually all of the time it will go smoothly. 

I know, but from you and reading other threads I know alot more now than I did yesterday and i don’t feel as stressed as I did friday. Still got to cancel my DD which I think putting off lol but will do by the end of the day lol

RAS

I'm rather worried about the OP's partner.

One of the basics of successful DMP management is that you allow the creditors to issue the default before you start paying. Even if debt charities try to rush you into action.

At the risk of sounding like a broken record:

A) If the debt is recorded as a default on your credit record, you know that in 6 years time your credit record will improve, even if you still owe money. 
If you set up immediate payments, the creditors will issue AP markers which stay one your credit record for 6 years after the debt is paid off.

C) The other big advantage is that once the default is issued, interest and fees are frozen. 

With AP markers the creditor can still charge them. In fact a few posters who have successfully reduced their debt have had interest reinstated because the payments they are now making are at or above the minimum repayment.

OP, you and partner might be advised to sit down with both your credit records. And to see if they are accruing AP markers because they didn't stop paying unsecured debt?

And that would also mean they probably haven't got a decent emergency fund either? As a home owner they do need that security blanket so they can pay the secured debt if there's a problem with their wages, something urgent needs doing on the house.

And please get your partner to come on here, if possible. If they decline, please make sure their DMP is organised via a debt charity, not a fee-charging company, and encourage them to speak to the debt charity about their fears. Their home isn't at risk because they are in a DMP and it won't be at risk because of your DMP.

It could be at risk if your joint income isn't enough to cover the secured debt. But you don't have any secured debt. It's really important that you both understand what's a real financial threat and what's just bluster. Bailiffs don't happen for unsecured consumer debt. They do happen if you don't pay your CT bill. 

You could theoretically get a CCJ but that's unlikely because you don't have any assets, unless you owe money to a credit union. Even if you did get a CCJ, you'd pay off an affordable amount each month and adjust your other payments.

You will get letters. Read them once week, and file them, until you get one demanding you repay the whole amount. That's a legal requirement before the creditor is allowed to issue a default. Come back here for support and to make sure you understand how to make payments once the default is issued.

You can ignore calls, texts and emails, or tell the creditor to remove those contact details from your record.

newbegin23

RAS said:

I'm rather worried about the OP's partner.

One of the basics of successful DMP management is that you allow the creditors to issue the default before you start paying. Even if debt charities try to rush you into action.

At the risk of sounding like a broken record:

A) If the debt is recorded as a default on your credit record, you know that in 6 years time your credit record will improve, even if you still owe money. 
If you set up immediate payments, the creditors will issue AP markers which stay one your credit record for 6 years after the debt is paid off.

C) The other big advantage is that once the default is issued, interest and fees are frozen. 

With AP markers the creditor can still charge them. In fact a few posters who have successfully reduced their debt have had interest reinstated because the payments they are now making are at or above the minimum repayment.

OP, you and partner might be advised to sit down with both your credit records. And to see if they are accruing AP markers because they didn't stop paying unsecured debt?

And that would also mean they probably haven't got a decent emergency fund either? As a home owner they do need that security blanket so they can pay the secured debt if there's a problem with their wages, something urgent needs doing on the house.

And please get your partner to come on here, if possible. If they decline, please make sure their DMP is organised via a debt charity, not a fee-charging company, and encourage them to speak to the debt charity about their fears. Their home isn't at risk because they are in a DMP and it won't be at risk because of your DMP.

It could be at risk if your joint income isn't enough to cover the secured debt. But you don't have any secured debt. It's really important that you both understand what's a real financial threat and what's just bluster. Bailiffs don't happen for unsecured consumer debt. They do happen if you don't pay your CT bill. 

You could theoretically get a CCJ but that's unlikely because you don't have any assets, unless you owe money to a credit union. Even if you did get a CCJ, you'd pay off an affordable amount each month and adjust your other payments.

You will get letters. Read them once week, and file them, until you get one demanding you repay the whole amount. That's a legal requirement before the creditor is allowed to issue a default. Come back here for support and to make sure you understand how to make payments once the default is issued.

You can ignore calls, texts and emails, or tell the creditor to remove those contact details from your record.

Thanks for your response, my partner has a DMP with SC and that’s been going for a year now. They have unsecured debts, they don’t have a mortgage as that’s paid for. Property is shared ownership 

all my debts are unsecured loans 9 of them 🤦‍♀️ going forward I am stopping paying my creditors and will build an emergency fund so we have something

also what is CT bill?

2021rdsunshine

newbegin23 said:

RAS said:

I'm rather worried about the OP's partner.

One of the basics of successful DMP management is that you allow the creditors to issue the default before you start paying. Even if debt charities try to rush you into action.

At the risk of sounding like a broken record:

A) If the debt is recorded as a default on your credit record, you know that in 6 years time your credit record will improve, even if you still owe money. 
If you set up immediate payments, the creditors will issue AP markers which stay one your credit record for 6 years after the debt is paid off.

C) The other big advantage is that once the default is issued, interest and fees are frozen. 

With AP markers the creditor can still charge them. In fact a few posters who have successfully reduced their debt have had interest reinstated because the payments they are now making are at or above the minimum repayment.

OP, you and partner might be advised to sit down with both your credit records. And to see if they are accruing AP markers because they didn't stop paying unsecured debt?

And that would also mean they probably haven't got a decent emergency fund either? As a home owner they do need that security blanket so they can pay the secured debt if there's a problem with their wages, something urgent needs doing on the house.

And please get your partner to come on here, if possible. If they decline, please make sure their DMP is organised via a debt charity, not a fee-charging company, and encourage them to speak to the debt charity about their fears. Their home isn't at risk because they are in a DMP and it won't be at risk because of your DMP.

It could be at risk if your joint income isn't enough to cover the secured debt. But you don't have any secured debt. It's really important that you both understand what's a real financial threat and what's just bluster. Bailiffs don't happen for unsecured consumer debt. They do happen if you don't pay your CT bill. 

You could theoretically get a CCJ but that's unlikely because you don't have any assets, unless you owe money to a credit union. Even if you did get a CCJ, you'd pay off an affordable amount each month and adjust your other payments.

You will get letters. Read them once week, and file them, until you get one demanding you repay the whole amount. That's a legal requirement before the creditor is allowed to issue a default. Come back here for support and to make sure you understand how to make payments once the default is issued.

You can ignore calls, texts and emails, or tell the creditor to remove those contact details from your record.

Thanks for your response, my partner has a DMP with SC and that’s been going for a year now. They have unsecured debts, they don’t have a mortgage as that’s paid for. Property is shared ownership 

all my debts are unsecured loans 9 of them 🤦‍♀️ going forward I am stopping paying my creditors and will build an emergency fund so we have something

also what is CT bill?

CT is your council tax bill. 

Once you understand the process of debt collection, doing your self managed DMP is pretty easy . It’s normal to feel uncomfortable at the start but remember you are taking steps to solve your situation in a way that’s affordable for you and your family. Wish you all the best and you’re definitely not alone. We all are on have been going through it. 

newbegin23

2021rdsunshine said:

newbegin23 said:

RAS said:

I'm rather worried about the OP's partner.

One of the basics of successful DMP management is that you allow the creditors to issue the default before you start paying. Even if debt charities try to rush you into action.

At the risk of sounding like a broken record:

A) If the debt is recorded as a default on your credit record, you know that in 6 years time your credit record will improve, even if you still owe money. 
If you set up immediate payments, the creditors will issue AP markers which stay one your credit record for 6 years after the debt is paid off.

C) The other big advantage is that once the default is issued, interest and fees are frozen. 

With AP markers the creditor can still charge them. In fact a few posters who have successfully reduced their debt have had interest reinstated because the payments they are now making are at or above the minimum repayment.

OP, you and partner might be advised to sit down with both your credit records. And to see if they are accruing AP markers because they didn't stop paying unsecured debt?

And that would also mean they probably haven't got a decent emergency fund either? As a home owner they do need that security blanket so they can pay the secured debt if there's a problem with their wages, something urgent needs doing on the house.

And please get your partner to come on here, if possible. If they decline, please make sure their DMP is organised via a debt charity, not a fee-charging company, and encourage them to speak to the debt charity about their fears. Their home isn't at risk because they are in a DMP and it won't be at risk because of your DMP.

It could be at risk if your joint income isn't enough to cover the secured debt. But you don't have any secured debt. It's really important that you both understand what's a real financial threat and what's just bluster. Bailiffs don't happen for unsecured consumer debt. They do happen if you don't pay your CT bill. 

You could theoretically get a CCJ but that's unlikely because you don't have any assets, unless you owe money to a credit union. Even if you did get a CCJ, you'd pay off an affordable amount each month and adjust your other payments.

You will get letters. Read them once week, and file them, until you get one demanding you repay the whole amount. That's a legal requirement before the creditor is allowed to issue a default. Come back here for support and to make sure you understand how to make payments once the default is issued.

You can ignore calls, texts and emails, or tell the creditor to remove those contact details from your record.

Thanks for your response, my partner has a DMP with SC and that’s been going for a year now. They have unsecured debts, they don’t have a mortgage as that’s paid for. Property is shared ownership 

all my debts are unsecured loans 9 of them 🤦‍♀️ going forward I am stopping paying my creditors and will build an emergency fund so we have something

also what is CT bill?

CT is your council tax bill. 

Once you understand the process of debt collection, doing your self managed DMP is pretty easy . It’s normal to feel uncomfortable at the start but remember you are taking steps to solve your situation in a way that’s affordable for you and your family. Wish you all the best and you’re definitely not alone. We all are on have been going through it. 

Appreciate that, thank you 🙏 

sourcrates

If your partner is already in debt management, then you should have some idea of how the process works.

Did they have legal action taken against them, and have bailiffs come knocking on the door?

I would suggest the answer will be no, non of that happened, there is a long list of what "could" happen, and a very short list of what "will be likely" to happen.

One thing we know for certain, is there is a lot of information to take in about this entire process and the various routes and paths it can take, so I think its best to start at the beginning, and as you approach each stage, you will learn a little more, there is far too much information to take in all at once.

So the first stage is cancel all direct debts/payment methods etc, your lenders response will be to write to you, and attempt to call you, to find out why you have cancelled your payment basically, you should ignore all creditor contact, unless the letters they send start to get legal in nature, not likely at such an early stage, but its important to read all correspondence.

Defaults are currently taking longer due to various reasons outside of all our control, just stick with it until you receive a default notice, which is a legally required document demanding full payment of the arrears within 14 days, if you don`t comply blah blah blah, and a default will be registered on your credit file.

This is what you want and need to happen, once you see that default on your file, you can start making payment arrangements with whoever may be servicing your accounts at that time, debts can be sold, assigned to collectors, or kept in house with the original lenders, or a mix of all three.

That is the basic process to starting debt management, the defaults are important because once defaulted, all interest will stop, and you have a clear 6 year window till your credit file recovers, you should also try and save an emergency fund from your budget, for life`s little up`s and down`s.

You can start paying before your accounts default, but you risk interest still being charged, and AP markers on your credit file, instead of a default, which stay on file 6 years after the debt is repaid, so potentially a long time, but as ever, the choice is yours how you want to play it, we can only provide advice, its up to you what you do with it.

newbegin23

sourcrates said:

If your partner is already in debt management, then you should have some idea of how the process works.

Did they have legal action taken against them, and have bailiffs come knocking on the door?

I would suggest the answer will be no, non of that happened, there is a long list of what "could" happen, and a very short list of what "will be likely" to happen.

One thing we know for certain, is there is a lot of information to take in about this entire process and the various routes and paths it can take, so I think its best to start at the beginning, and as you approach each stage, you will learn a little more, there is far too much information to take in all at once.

So the first stage is cancel all direct debts/payment methods etc, your lenders response will be to write to you, and attempt to call you, to find out why you have cancelled your payment basically, you should ignore all creditor contact, unless the letters they send start to get legal in nature, not likely at such an early stage, but its important to read all correspondence.

Defaults are currently taking longer due to various reasons outside of all our control, just stick with it until you receive a default notice, which is a legally required document demanding full payment of the arrears within 14 days, if you don`t comply blah blah blah, and a default will be registered on your credit file.

This is what you want and need to happen, once you see that default on your file, you can start making payment arrangements with whoever may be servicing your accounts at that time, debts can be sold, assigned to collectors, or kept in house with the original lenders, or a mix of all three.

That is the basic process to starting debt management, the defaults are important because once defaulted, all interest will stop, and you have a clear 6 year window till your credit file recovers, you should also try and save an emergency fund from your budget, for life`s little up`s and down`s.

You can start paying before your accounts default, but you risk interest still being charged, and AP markers on your credit file, instead of a default, which stay on file 6 years after the debt is repaid, so potentially a long time, but as ever, the choice is yours how you want to play it, we can only provide advice, its up to you what you do with it.

No nothing like that has happened thank god, you guys have put me at ease so much, all direct debits have been cancelled so saving starts now and so does waiting for letters eek 

RAS

You are welcome back here if you want support. Or you could start a diary on that sub-forum. No requirement to report to either but both can be useful for information and support.