DMP & Renting/Mortgage

owens92

Good afternoon everybody,

Trying to get some answers if possible.

1. - I'm on a DMP can i open a joint bank account with my partner (not on dmp) so we have a main account for paying household bills, house savimgs etc. or will my DMP want acess to this and see it as i have more money, due to my partner putting money in there too ?

2. -  would anyone know about going from a dmp to an iva?   i know a dmp can be indefinite amount of time and IVA 5/6 year max,  i have around 12k debt and paying off around £170p.m on DMP.


Notes to consider:

i have been on the DMP for one year.

my partner and i live together already with separate bank accounts and i help pay her half of rent, we want to get our own place and so would want a joint account to make it easier to pay bills etc.

we will be looking at a mortgage in the future but now looking to rent just get a place of our own.

T.I.A.

ManyWays

1. - I'm on a DMP can i open a joint bank account with my partner (not on dmp) so we have a main account for paying household bills, house savimgs etc. or will my DMP want acess to this and see it as i have more money, due to my partner putting money in there too ?
It won't be a problem for your DMP but it is a financial link that will hurt your partners credit record, so its normally best avoided. 

2. -  would anyone know about going from a dmp to an iva?   i know a dmp can be indefinite amount of time and IVA 5/6 year max,  i have around 12k debt and paying off around £170p.m on DMP.
You are paying about 2k a year so it will only go on for another 6 years (assuming you are with a decent DMP firm that doesn't charge you an fees?).
It would be mad to switch to an IVA which is a form of insolvency like bankruptcy in this situation. A new private tenancy in an IVA is very difficult, you almost always need a guarantor. 

Also there are ways to speed up a DMP that dont apply to an IVA. You could win affordability complaints, reducing your balance to be repaid, or when debts have been sold to a debt collector they may not be able to produce the CCA agreement if you ask for it and the debt would then be unenforceable and you can simply stop paying. And debt collectors are much more likely to accept a lower settlement offer from you as well.

Do you have a list of the DMP debts and which have been sold to a debt collector so far?

sourcrates

Stick with the DMP, hopefully you are using one of the free debt charities or are you self managed?

An IVA is bankruptcy for homeowners, as assets are protected, so unless you own a house, and are at least 40k in the hole, forget about an IVA.

owens92

Thanks for the responses!

made much clearer thank you, i am with a DMP called fresh start.  my receipt from payments are as follows.

£49 Management fee   £112 Distributed to creditors so its more like 9 years more of the DMP,

yes i have a list of all 8 debts and there balances/account numbers etc.  Would it be worth myself asking them for the CCA or asking the DMP to obtain them?

ManyWays said:

1. - I'm on a DMP can i open a joint bank account with my partner (not on dmp) so we have a main account for paying household bills, house savimgs etc. or will my DMP want acess to this and see it as i have more money, due to my partner putting money in there too ?
It won't be a problem for your DMP but it is a financial link that will hurt your partners credit record, so its normally best avoided. 

2. -  would anyone know about going from a dmp to an iva?   i know a dmp can be indefinite amount of time and IVA 5/6 year max,  i have around 12k debt and paying off around £170p.m on DMP.
You are paying about 2k a year so it will only go on for another 6 years (assuming you are with a decent DMP firm that doesn't charge you an fees?).
It would be mad to switch to an IVA which is a form of insolvency like bankruptcy in this situation. A new private tenancy in an IVA is very difficult, you almost always need a guarantor. 

Also there are ways to speed up a DMP that dont apply to an IVA. You could win affordability complaints, reducing your balance to be repaid, or when debts have been sold to a debt collector they may not be able to produce the CCA agreement if you ask for it and the debt would then be unenforceable and you can simply stop paying. And debt collectors are much more likely to accept a lower settlement offer from you as well.

Do you have a list of the DMP debts and which have been sold to a debt collector so far?

Grumpelstiltskin

OK  So you are paying these vultures for something either a charity or yourself can do for free.

£49 a month, how many months have you paid them?

Work it out and that money could have been used to pay off your debts.

Pease cancel them NOW.

Rob5342

owens92 said:

£49 Management fee   £112 Distributed to creditors so its more like 9 years more of the DMP,

Ditch them immediately and use one of the free ones like Stepchange, or manage it yourself.

£112 over 9 years is £12,096, take out the "management" fee and the DMP will be just over 6 years.

RAS

Jeepers, you've been mugged. Please cancel the arrangement today and explain to hubbie that you've halved the problem!

Out of interest, where did you find this advertised?

ManyWays

Would it be worth myself asking them for the CCA or asking the DMP to obtain them?
Do this yourself AFTER you have escaped from that fee charging filrm or they will probably try to charge you a percentage if a debt is unenforceable. They certainly arent going to do it for you as it is reducing their income. 

sourcrates

I feared as much from the tone of your post that you were with a fee charging company, you need to cancel your agreement with them straight away, debt management can be done yourself, or via the debt charities and you should never have to pay for the privilege.

This company and others like them, just profit from your misery, they are as much a part of your problem as the original debt, ditch them ASAP.

owens92

To everyone who helped. thank you!!!

gone over to step change who don't charge a fee and have helped me now pay more per month meaning i'll be debt free even quicker

sourcrates

Excellent news, well done, glad to be of service.