I struggle to read, but want to run my own DMP

AudADHDGuyWithABrainInjury

Hi

I have several disabilities that make combined make focusing for long periods difficult 

I was wondering if I can default on some unsecured debt and not all of it and then set up a DMP with the creditors I defaulted on.

Largely because my bank just took over Tesco’s loans and I have a pretty affordable one with them, £99 a month and I plan to pay off PayPal credit using my next student loan payment in April.

I also am not sure if I have to provide bank statements and bills to creditors when managing a DMP myself 

so far I believe the process I should begin is this

1.  Stop making payments 

2. Figure out how to get companies to communicate with me by email only and do that

3. wait for default notices

4. file all letters

5. Contact creditors individually after default notice comes in and ask to enter a debt management plan with them 

6. Provide them an SOA and tell them what I can afford to pay them individually 

7. set up standing for that amount to each individual creditor

I tried to pull as much from the forum by reading but it probably looks like I haven’t.  I have persistent post concussion syndrome and I forget a lot of the things I read 

have I missed an awful lot, or is that about the size of it?  Can I default on some unsecured debt whilst making full payments to one creditor?  Lastly, do I have to provide bank statements and bills to creditors I am trying to negotiate a monthly payment under the DMP I am running?

AudADHDGuyWithABrainInjury

Hi

TW: domestic violence 

being autistic and having ADHD were pretty problematic when it came to holding down a job etc

then my ex wife tried to murder me on a number of occasions leaving me with persistent post concussion syndrome 

sooooo

Yeah ADHD plus added brain condition has made focusing and reading pretty difficult the past 2/3 years.  I may have missed what I am about to ask in the forum.  Apologies in advance 

add in the impulse control issues from the brain damage (technically not physical damage but for ease of understanding and in practical terms brain damage is a descriptor that fits) to a novelty driven brain and voila you have some reckless spending coming your way.

im about £15k in debt with a monthly income of £1289.

Have done the SOA and briefly read about DMPs but I have a more general question 

shouldn’t I be absolutely terrified of defaulting on my debts because debt collectors will be round to knock my door down and take all my stuff?

400ixl

No, you should NOT be worried about that as it is very unlikely to happen.

Others more knowledgable will be along, but take that worry out of your head.

sourcrates

AudADHDGuyWithABrainInjury said:

Hi

Have done the SOA and briefly read about DMPs but I have a more general question 

shouldn’t I be absolutely terrified of defaulting on my debts because debt collectors will be round to knock my door down and take all my stuff?

Short answer is no, debt collectors have zero power to do anything, they certainly can`t "knock your door down" nor can they "take your stuff" that is pure fiction.

The vast majority of debt collectors work in call centres and use the phone/text/email and letters to contact you.

Affordability is the key to making lasting payment arrangements, such as debt management, and then everyone is happy with that.

I think you were probably thinking of bailiffs, not debt collectors, but similar rules apply to them as debt collectors, and a lengthy court process must be gone through before a bailiff can visit you, and for consumer credit debts, these things just don`t happen, so best to remove all thought of such matters from your mind so you can concentrate on what is actually important.

AudADHDGuyWithABrainInjury

So… it seems I can just default and not lose my camera equipment (bought before debt issues came in the past two years since my injuries)?

huh.

in an economy where buying a house is basically a pipe dream for most, I wonder why people run up 100k and just walk.  Thank you for
the reassurance, I’ll try to figure out how to run a DMP by myself so I’m not paying a fee on top of the

AudADHDGuyWithABrainInjury

I meant “don’t” run up 100k oops

EssexHebridean

The key is to default but once that has happened, make affordable payments to bring down the amount owing. For most people defaults aren’t just followed by them being able to turn their backs and walk away.

If you feel you will struggle to manage a DMP yourself then there are free debt help charities that will help - Stepchange for example - but you need to get the detain pace before going to them else they will try to get you to start the DMP right away meaning the impact on your credit file will be more long drawn out.

In terms of the impulse spending what happens if the money is not in the bank to spend - is it straight to the credit cards or what? Interested to know how things play out for you because remember that going forwards there will be no credit cards, and you need to be sure that your priority bills will be covered, so a good plan of attack is going to be needed!

I would suggest putting together your SOA (statement of affairs) and let’s see where you are at. The link to the SOA calculator is in my signature below. Also - have you checked that you are getting all benefits you may be entitled to? 

AudADHDGuyWithABrainInjury

Oh

i am also the director of an LLC which primarily exists to pay off a bounce back loan a business I had before my injuries.

fatbelly

Yes, with a self managed dmp you can do what you want. What is the apr on the loan you want to exclude?

Why not share your soa with us first to see if all this is realistic?

Rob5342

You dont negotiate anything with your creditors, you tell them what you will be paying them and they can like it or lump it. There's no need to provide them with bank statements or bills. I used this site when I started managing mine, it generates the letters and SOA for you to send off. The SOA you send creditors doesn't have to be completely accurate, just something that arrives at the amount you will be paying so they can tick the "we've checked this is affordable" box (the SOA you provide as a reply here should be 100% accurate so we can give full advice)

https://nedcab.cabmoney.org.uk/dmp.asp

sourcrates

Threads merged for clarity.