DMP advice

Rob5342

There's no need to feel guilty. These are big companies you are talking about, they'll have built a certain amount of non payment into their business plan, your debt will get sold on for a small fraction of its value and they will still make a decent profit overall. It's not like you aren't paying a relative back and age leaving them short.

flamingo22

I've cancelled my direct debits and I've already had two text messages today to tell me to update my payment details, I've tried to change my contact details but I need to verify the phone number, so I'm unable to give them a false number 🥴

Keep having to remind myself that I'm doing the right thing.

flamingo22

and now I've just read a comment on another diary that states a charging order is a possibility when there is equity on your house. I own my home on my own, is my house going to be at risk? This has terrified me now.

13thlegion

https://forums.moneysavingexpert.com/discussion/comment/82145454#Comment_82145454

A possibility? Yes.

Likely? No.

Charging orders do not appear out of thin air. They are a step after a CCJ, which themselves are as rare as hens teeth for consumer debt if managed properly.

For the phone number I have heard of people getting a cheap pay as you go sim. Popping that in their phone for the time it takes to change the number, then taking it out and sticking it a drawer somewhere.

flamingo22

https://forums.moneysavingexpert.com/discussion/comment/82145671#Comment_82145671

Thank you for that, so as long as when I have my defaults and set up payments with whoever, the likelihood of this happening is very slim.

I will have a look into another SIM card.

Thanks for the reassurance.

sourcrates

A charging order just sits on the land registry deeds and stays there until the house is either sold or the debt is repaid some other way.

Lots of people have charging orders, they mean diddly squat in 99% of cases, judges do everything in their power to prevent a CO evolving into an order for sale, as long as you make payments to the CCJ, nothing else will happen.

flamingo22

I've just had a letter from HSBC saying that if I donor pay the minimum amount then they may take legal action against me. I have missed one payment, how likely is this and what potentially could the legal action be? Thanks.

sourcrates

One payment lol, its just a standard collection letter stating possible consequences of non payment, nothing to fret over.

Remember, a debt has to default first before legal action can be taken.

The "legal action" would be via the civil procedure rules involving a claim through the Northampton bulk centre most likely, but as I said, they can`t do that until it defaults, and they won`t do it then either, they will simply involve a debt collector, as happens 99% of the time.