Debt Management Plan

Aro2025

just worried now about next steps and next knock on door. As I’ve got 7 cards in the dmp, worried 7 different outcomes and bailiffs will knock :( just as I’ve taken a week off work I’m not scared.

RAS

Bailiffs aren't even on the horizon. So relax.

Legally, creditors can take you to court to get a CCJ but that costs money and is rarely worth it from their point of view. If they want to, you'll get a Letter before Action at which point you can offer a regular affordable payment so they desist.

If they decide to proceed, you'll be asked to provide and income and expenditure form. So they may end up with even less per month.

Rob5342

Eventually most debts end up getting sold to a debt collector.

Debt collectors sound scary but they buy debts for around 10% of their value with the intention of making a return over a few years. They can make a nice profit with little effort just by accepting what seems like a small payment to you, they don't have to chase every single debt down for its full value.

sourcrates

"Based on what we know, we don't expect you to make any payments for the amount owed. So, if you've not done so, you should cancel your Direct Debit, standing order or any other payments set up to pay your credit card."

Can you clarify this bit please, as it sounds to me, very much like they intend to write off the debts you owe them.

The default notice is just standard wording, so ignore that, what else did it say in the letter, did it mention writing off the debts ??

As for bailiffs, please, please do your own research, a bailiff can only be engaged once a county court judgement is in place and you fail to make payments to that judgement, even then the use of a bailiff on a consumer credit act debt is virtually unheard of.

Bailiffs mainly deal with private debts, council tax arrears, unpaid rent arrears, statutory fines and court fines etc, not personal debt to non essential lenders, that is almost exclusively the domain of the debt collector.