Title: Starting a DMP but Debts Defaulting at Different Times – Worried About Legal Action (Joint De

Simba2022

Hi all,

We’re looking for some guidance about starting a DMP and would really appreciate some advice from people who’ve been through it.

Our joint unsecured debts total just over £130,000, and they’re all at different stages, so they’re going to default at different times. Our original plan was to wait for each one to default before adding it to a DMP, so everything gets a clean, early default date on our credit files.

We’ve completed the whole StepChange setup process and all our debts are entered. We’re literally at the point where all we need to do is press the button to commit to the DMP — but we’re unsure whether to do it now or wait for more accounts to default.

This timing issue is making us quite anxious.

I’m currently training to become an accountant (partly to build a stable career, and partly because I want to understand money better and never end up in this situation again). Because of the professional implications, bankruptcy / DRO / IVA aren’t options for me — a DMP is the only route we can take.
So we can’t risk anything escalating to CCJs or legal action while we are waiting for other debts to default.

Our concerns are:

• Some debts will default well before others

• While we’re waiting for later ones, the earlier ones might move toward legal action

• We don’t know how long creditors usually take after a default before things get “pre-legal”

• We’re not sure whether to start the DMP immediately or delay it for a bit

What we’d really like to understand is:

• How do people handle a DMP when debts default at different times?

• Is it OK to start the StepChange DMP now and then add debts later as they default?

• Realistically, how long after a default do creditors tend to wait before considering legal action?

• Has anyone else delayed starting their DMP for default-timing reasons?

Given the impact this could have on my future career, we really don’t want to get the timing wrong. Any insight or personal experience would be massively appreciated.

Thanks so much for reading.

Grumpelstiltskin

Do not pay any of the debts before they default.

Easier to self manage then you can start payments when individual debts default as long as you have checked they are enforceable by requesting CCAs  and you have submitted any affordability complaints if appropriate.

Court action just doesn't suddenly happen if the creditor is thinking of applying for a CCJ they have to go through the proper legal procedure which starts with sending you a letter by snail mail. At that point you can do something.

Rob5342

If you manage it yourself it will simplify things as you can just start paying each debt as it defaults. Stepchamge don't do anything you can't do yourself in a dmp, and having them involved often just complicates what is a very simple process, as you can see for your situation. 

ManyWays

they’re all at different stages, so they’re going to default at different times
Could you give us a list of your debts - creditor name and balance. and say how long ago you started missing payments to them? 
Are any of the business debts or personal guarantees over business debts? 

If you are training to become an accountant, that doesnt sound like your income is high. what about your partners? Are you buying or renting?

it would help if you could also complete a joint Statement of Affairs (SOA), using this form and post it here https://www.stoozing.com/soa.php