Question about defaults / starting the DMP

theatrelover1

Hello,

This month I am going to stop making payments against my unsecured debts (£8k), in order for them to default over the next 3-6 months, so I can then start a DMP.

I have 5 creditors and I expect they will default at different times.

Could you advise what I should do after the first creditors have defaulted, whilst I wait for the remaining? Should I pay a small monthly token payment to these creditors prior to the full DMP starting? Or should I not communicate with them and wait until all creditors have defaulted?

Thank you in advance for your advice.

RAS

A DMP has no legal status, although it is a widely recognised debt management tool in England and Wales.

So to some extent, you do what you want to do. If you are in temporary crisis you might offer a token payment as the defaults are offered and hope to increase that when the employment situation improved. If you are on a state pension and benefits, I'd suggest asking for write offs.

Rob5342

You can do whatever you want to. Personally I would start making payments to each debt as it defaults, if you want to build up more of an emergency fund you could start with smaller payments or delay starting the payments, you don't want to leave it too long though.