Self managed DMP help

ManyWays

also this is a good time to make an affordability complaint to zopa

Woolywelsh

4 of the 6 debts have defaulted. I have not started any payments yet. How long do I have before Any further action is taken. I don't want the defaulted ones to drag on too long and then make things worse. Will they send a warning letter before so.... Then I can act? How does it work. Thanks

tigergambit

https://forums.moneysavingexpert.com/discussion/comment/81862577#Comment_81862577

How long? - it's entirely up to you.

The power metric has changed and you are now in control. It's probably best to wait until they write to you on each defaulted account. This may take several months whilst they decide whether to sell (most likely) or collect in house. It may then take another several months for the new owner/tame DC to get in touch with you. Then you can set up a payment.

In the meantime work on two versions of your SOA - one for them (if necessary) showing minimal surplus and one for you to live by including a settlement fund you can build up over the coming years. You use the surplus in the former when calculating how much you are going to pay.

If in doubt come back here.

sourcrates

https://forums.moneysavingexpert.com/discussion/comment/81862577#Comment_81862577

You are right at the start of the debt collection process, the law grants a creditor 6 years in which to take legal action to recover any debts that may be owed to them, not many lenders go straight to legal action as a first response, its mainly a last resort for most, and much further down the line that you are now.

Once your accounts default, the creditor must decide what to do with the bad debts, they can either sell it on, assign it to a collector to collect on their behalf, or they may still keep it in-house and manage it themselves.

It could be anywhere between 6 weeks and 6 years before they make up their minds what to do, but whatever they decide, you will be written too, so just watch the post, don`t do anything until you get a letter telling you what course of action they are taking.

Contrary to popular belief, things move very slowly in the debt collection world.