Iva or Dmp

Shookt38

sourcrates said:

Shookt38 said:

tigergambit said:

Shookt38 said:

The reason why I wanted the dmp is whilst in ME, I can send my money to my account here and still continue paying. But i have been advised by people not to anymore since im leaving the country. What if my kids go back for schooling or we decided to come earlier than 6-8 yrs? 

Any more advice will help me out.

OK, debt is a civil matter, it only affects the named debtor, which is you, and only if you are resident in this country.

As said previously, consumer credit debt is not chased abroad, there are mechanisms in place to do so, with some countries we have reciprocal arrangements for debt, but for nearly all high street lenders, it`s too much hassle and to costly to even consider it.

I was not aware stepchange would deal with you if you lived abroad, I would check that again if I were you, there may be time limits, but if so, no problem, set up your DMP with them if that`s what you want to do, and you can afford it.

There is no rush to do anything, as others have said, the collection process takes months to get into gear, if you stop paying today, not much will have happened by January.

Hi! Thanks for your response. I have been talking with them since May and that’s what SC has told me even payplan. They just asked to s nd new address and keep in contact with them. 

With regards to the dmp, Sc told me I could start now and they will figure out everything and let me know. If what you are saying is, even if i do start now, not much will be happening till January, should i just wait to have my debt in default? Wont the lenders come after me? Or do i tell them im setting up my dmp? 

Sorry im really new to this. I never thought i would come to this even.:( 

tigergambit

Shookt38 said:

tigergambit said:

Shookt38 said:

Grumpelstiltskin said:

OP You seem to want to pay every penny of the total amount of your debt  back when we can advise you how to pay a reduced amount or in fact nothing.

Do you want to take our advice?

Once you are out of the UK then nothing will happen, repeat nothing.

I would suggest if you are moving to the middle east you make 200% sure you don't get into debt there as the laws are totally different.

Please let us know if you want us to advise you.

The move wont be happening until early next year. That is why i am asking what can i do for now

Stop paying.

People new to it don't realise just how slowly the whole debt process moves. If you were to stop paying today it is unlikely that many of your debts would have got through the default/assignment/sale/request for payment cycle by January. If they have you just set up token payments for a few months. Not something normally advised on here but you could delay this further by asking for breathing space. 

Have you checked that debt in the UK will not effect your employment in the middle east?

I have checked. As of the moment there is no implication as everything is done online by the employer. 

When you stop paying you mean I need to wait for it to go on default? 

The reason why I wanted the dmp is whilst in ME, I can send my money to my account here and still continue paying. But i have been advised by people not to anymore since im leaving the country. What if my kids go back for schooling or we decided to come earlier than 6-8 yrs? 

Any more advice will help me out.

Yes, cancel all DD payments to creditors and await defaults.

I don't understand why you would want to pay debts you don't have to? Well, I do as I used to think that way too. There are many explanations on here as to why you shouldn't feel morally obliged to. 

If it really bothers you that much pay the money into a savings account whilst you are abroad. You can make the decision when you return and that would also cover you should you return early. Kids coming back for school would not be a problem.

Grumpelstiltskin

Do not think about paying until the debts have defaulted, that could happen in weeks or it could take many months.

When they have defaulted you could send CCA requests for credit cards and loans, then nothing will happen until they provide a valid CCA again time will be passing towards next year.

You have to not contact your creditors at the moment, you will receive phone calls, texts and E Mails. Block all numbers and ignore them. Open any letters you receive by snail mail and if you are unsure about the contents ask us.

Nothing terrible will happen you have to realize you are in control not them.

I would suggest you save as much as you can and then you will be in a situation that you have money when you move.

sourcrates

Lots of advice on different approaches to this, so just to summarise things for you, as there are many ways you can deal with this debt.

(1) You can start dealing with stepchange now, today, set up an arrangement with them, forget about it, and get on with your life.

(2) The advice to wait for defaults is fine, if you were staying in this country, your UK credit file only affects the UK, so as you are going abroad, that part is immaterial in your case, defaults now or later won`t affect you in the slightest.

(3) Or, you can just stop paying now, nothing will happen between now and January, you might get some collection letters, and a few phone calls, one or two might be quick off the mark and default you by then, but on the whole, not much will be decided by that date.

You can go away to the ME, makes no difference to you what happens to your debts whilst you are there, you can return for visits with zero issues, after 6 plus years, your UK credit file will be clear again, the debts will have run their course, there may be odds and ends to sort out, but essentially they will be gone for the most part.

That`s essentially the pattern of events you are looking at, the choice on where you go now is yours.

RAS

Since you are going to be living in the ME it is vital that you do not get into debt there. In some countries an allegation of debt (even if you don't think it exists) can result in you being imprisoned, based on media stories. There's enough FO statements about "being in contact with  UK national" who hasn't had a consular visit and may have signed an untranslated statement to mean that you need a good emergency fund before you go.

You need a very very carefully organised budget to cover all your living costs. And to avoid any taking out credit.

The reason people here recommend you stop paying in the UK are twofold:

1. We've seen enough people who rushed into DMPs and then got into a mess when an emergency or two happened to advise that you need a money behind you before you start. Reputedly Stepchange allows £30 pm towards an emergency fund.

2. If you start paying your creditors immediately, you will get AP markers, which are removed 6 years after the debt is paid off.
If you stop paying until the debt is defaulted and registered, the default is removed from your account in 6 years, even if you still owe money.

That could be the difference between coming back to the UK to a clear credit record and finding you can't even get a phone account for the next few years.

Shookt38

tigergambit said:

Shookt38 said:

tigergambit said:

Shookt38 said:

Grumpelstiltskin said:

OP You seem to want to pay every penny of the total amount of your debt  back when we can advise you how to pay a reduced amount or in fact nothing.

Do you want to take our advice?

Once you are out of the UK then nothing will happen, repeat nothing.

I would suggest if you are moving to the middle east you make 200% sure you don't get into debt there as the laws are totally different.

Please let us know if you want us to advise you.

The move wont be happening until early next year. That is why i am asking what can i do for now

Stop paying.

People new to it don't realise just how slowly the whole debt process moves. If you were to stop paying today it is unlikely that many of your debts would have got through the default/assignment/sale/request for payment cycle by January. If they have you just set up token payments for a few months. Not something normally advised on here but you could delay this further by asking for breathing space. 

Have you checked that debt in the UK will not effect your employment in the middle east?

I have checked. As of the moment there is no implication as everything is done online by the employer. 

When you stop paying you mean I need to wait for it to go on default? 

The reason why I wanted the dmp is whilst in ME, I can send my money to my account here and still continue paying. But i have been advised by people not to anymore since im leaving the country. What if my kids go back for schooling or we decided to come earlier than 6-8 yrs? 

Any more advice will help me out.

Yes, cancel all DD payments to creditors and await defaults.

I don't understand why you would want to pay debts you don't have to? Well, I do as I used to think that way too. There are many explanations on here as to why you shouldn't feel morally obliged to. 

If it really bothers you that much pay the money into a savings account whilst you are abroad. You can make the decision when you return and that would also cover you should you return early. Kids coming back for school would not be a problem.

Thanks for your response. Wow im learning more and more as I read your comments. This is another thing I am thinking as I need to also save some money for emergencies. I am really stuck as I really wanted to have a solution as quickly as I can. 

Shookt38

Grumpelstiltskin said:

Do not think about paying until the debts have defaulted, that could happen in weeks or it could take many months.

When they have defaulted you could send CCA requests for credit cards and loans, then nothing will happen until they provide a valid CCA again time will be passing towards next year.

You have to not contact your creditors at the moment, you will receive phone calls, texts and E Mails. Block all numbers and ignore them. Open any letters you receive by snail mail and if you are unsure about the contents ask us.

Nothing terrible will happen you have to realize you are in control not them.

I would suggest you save as much as you can and then you will be in a situation that you have money when you move.

Hi, thank you for the advice. I am just worried about my work and also my kids. I dont want anyone showing up at my workplace or harassing us at home where my kids are. That is basically one of those things that a parent worries about. I am hardly even sleeping coz of the stressful thinking. We were supposed to move 2 years ago but  i was on maternity and then mom passed away. 

Shookt38

RAS said:

Since you are going to be living in the ME it is vital that you do not get into debt there. In some countries an allegation of debt (even if you don't think it exists) can result in you being imprisoned, based on media stories. There's enough FO statements about "being in contact with  UK national" who hasn't had a consular visit and may have signed an untranslated statement to mean that you need a good emergency fund before you go.

You need a very very carefully organised budget to cover all your living costs. And to avoid any taking out credit.

The reason people here recommend you stop paying in the UK are twofold:

1. We've seen enough people who rushed into DMPs and then got into a mess when an emergency or two happened to advise that you need a money behind you before you start. Reputedly Stepchange allows £30 pm towards an emergency fund.

2. If you start paying your creditors immediately, you will get AP markers, which are removed 6 years after the debt is paid off.
If you stop paying until the debt is defaulted and registered, the default is removed from your account in 6 years, even if you still owe money.

That could be the difference between coming back to the UK to a clear credit record and finding you can't even get a phone account for the next few years.

Oh wow.. 😮 

I didn’t know that is how that works! Everything seems to come into light now! 

What SC gave me as a primary choice is Dmp for 10yrs and 4 mos. They asked me to pay £664 each month to them and they can divide it to the creditors. But they told me that only after I finish my debt at 10yrs 4 mos, will the 6 years from then start to clear my credit file. 

Payplan on the other hand, Iva for 5-6yrs and then clear credit file after the 6th. 

So just to clarify, if i come back after 6yrs, will i still be paying the credit that I left? 

Apologies again. My mind is all in a mess right now 😓

Grumpelstiltskin

Nothing happens fast in the debt collection industry, that's why you have been advised just to stop paying and save as much as you can before leaving the UK.

There is no rush at all, don't worry about this not getting sorted quickly, that's how it is.

Shookt38

Grumpelstiltskin said:

Nothing happens fast in the debt collection industry, that's why you have been advised just to stop paying and save as much as you can before leaving the UK.

There is no rush at all, don't worry about this not getting sorted quickly, that's how it is.

Thank you. I will probably be asking more as the days and weeks happen. 

Just curious as one of the creditors is under union and they took it from my salary which got me shocked since i prepared to pay them from mg bank account. How do i go about that?