Help needed please re debt and possible DMP

Grumpelstiltskin

Look take things one step at a time, starting a DMP is way down the line, if you run one yourself you make payments when and how much you want. As I said don't panic about defaults turning into CCJs, it doesn't happen like that and you are always given written notice if a creditor is thinking about going for a CCJ and you then have time to do something about it.

Please start by giving us an accurate SOA. When we see that we can give you information that is relevant to you.

sourcrates

"I don't want to risk the default that`s been issued turning into a CCJ"

I think it best if you first understand what the different terms mean in debt collection, a "default" is the consequence of not making your contractual debt repayments, it`s marked on your credit file as the date your credit agreement officially ended, it doesn't turn into anything, its simply a record of the default status, and stays on file for 6 years regardless of what you do, it does not turn into a county court judgement, they are two entirely separate things altogether.

Debts do tend to default at different times, depending on the creditor, so the best way to tackle the problem is simply to wait until they have all done so, creditors/debt collectors may write to you, and call you, this is known as "collection activity" but the only way they can force payment is by using the courts, that is rare at this early stage, but it can happen,

As will all things of a legal nature, there is a correct process to be followed, court claims are governed by the civil procedure rules, and without going into too much detail here, if a lender is going to take you to the small claims court, its all done online and by post, they must first send what`s known as an LBA, a "letter before action".

This is a document designed so that you can both come to an agreement without the need to progress to a court claim, it will have an number of options listed, and a 30 day return window.

So basically you don`t just get a CCJ, you can avoid getting one if you make an arrangement beforehand, but its very important you take note of any post you get, only letters are important, emails/texts and calls are not legally compliant with civil procedure rules, anything of importance comes in the post.

As long as you follow these simple rules, you can best manage your debts, and disrupt your life as little as possible.