DMP Mutual Support Thread (Part Three)

newlywed

loopylu36 wrote: »

I think there are three points to consider with an IVA:

Firstly, as you say, if you default on it then you go b/r. And who knows what your financial position will be in 1, 2 or 5 years' time? At least on DMP you can reduce payments if absolutely necessary. I am worried about making my dmp payments at the moment as I have just lost my job, but I would be a hell of a lot more worried if I was on an IVA and missing a payment would result in b/ruptcy.

Sorry don't mean to put a downer on your helpful post, but from what I gather on these forums, if you default on an IVA you are not automatically made bankrupt. The creditors then have the right to make you bankrupt but that still costs them money to do that. I understood an IVA can just "fail" with no-one necessarily forcing you into bankruptcy and no monies having been paid off your debts (as all the fees get taken first) - so back in the same place as before but having paid out money for the IVA fees for nothing.

loopylu36

newlywed wrote: »

Sorry don't mean to put a downer on your helpful post, but from what I gather on these forums, if you default on an IVA you are not automatically made bankrupt. The creditors then have the right to make you bankrupt but that still costs them money to do that. I understood an IVA can just "fail" with no-one necessarily forcing you into bankruptcy and no monies having been paid off your debts (as all the fees get taken first) - so back in the same place as before but having paid out money for the IVA fees for nothing.

It can fail in two ways - firstly if your creditors do not agree to it in the first place then it is a failed IVA attempt. In these circumstances, then i don't think you would be forced into bankruptcy any more or less than you would on any other form of dmp.

An IVA can also fail later on after it has been set up if you can't make the monthly payment and 9 times out of 10 that does appear to result in bankruptcy. (apologies if I indicated that it was AUTOMATIC - so far as I know it isn't but it is a strong possibility.)

Whilst on an IVA you are legally protected from your creditors taking such action, but ONLY whilst you keep to the agreement. It might be best for Skipadee to go onto the bankruptcy board as they have more expert knowledge in this field

fermi

loopylu36 wrote: »

An IVA can also fail later on after it has been set up if you can't make the monthly payment and 9 times out of 10 that does appear to result in bankruptcy. (apologies if I indicated that it was AUTOMATIC - so far as I know it isn't but it is a strong possibility.)

That depends entirely on the IVA agreement.

Most of the agreements set up by the big commercial IVA providers seem to have clauses in them that state things like "no retention of funds for bankruptcy petition costs", and contain no obligation for the IP/supervisor to either pay for or organise a bankruptcy petition.

The vast majority of people with failed IVA's on the Bankruptcy & Living With It board have had to fund and do the petition themselves (if that is what they wanted to do).

Even if there is provision in the agreement for the IP/supervisor to petition, if the IVA fails early enough then apparently it can result in insufficient funds being available to do so. Again you would returned to a similar position to that which existed before the IVA.

Jvic28

Hello,

I hope someone can help. I'm likely to be spending a lot of time on this site as I try to sort out the mess I have got myself into.

I have a pack on the way from CCCS but have no idea what the next steps will be when the pack arrives. Can someone fill me in a little of what will happen as I am very anxious.

Also, I have a lot of creditors expecting payments now, not huge amounts but I really can't afford to make payments anywhere near what they are asking. What should I do next?

Really can't wait to start getting this sorted out as I'm fed up of debt playing on my mind.

Thanks

Reformed_Shopaholic_2

Hi Loopy, sorry about your news but I think it will all turn out for the best in the end and you will get a job that you enjoy - a bit rich coming from someone who was counting the hours til the weekend this afternoon, but I do mean it...

Rayday, hope you're ok and thanks for the useful posts this week, also Andy all very helpful.

Whoopie how are you? Marru - well done starting your own dmp - i've had a couple of "return the card and we won't accept your payment we want more" letters - i'm with CCCS and my almost 40,000 debt is getting only £131 thrown at it so will definitely be posting for advice over next few weeks when the letters roll in.

Welcome to Maz and hi to everyone, too many to mention.

Have popped in over last couple of nights reading through all the posts and sorry not been in sooner with a reply - just really looking forward to the weekend :beer: and hope you're all doing the same.

Wanted to say yes please to setting up a sticky or something similar for the templates they have been invaluable (long word for a Friday) and I know I will be asking for more of them in the weeks to come...

Just a quick question, seem to remember someone posting about scanning letters and emailing them over to CCCS - creditor not accepting low payment or defaulting etc. can someone let me know if they did that or not?

No post today so just the couple of letters saying they won't accept low payment offered by CCCS and attaching a standing order instruction so I can pay their idea of a suitable monthly payment :rotfl: I literally have 36p in my purse or thereabouts...so don't think I can help them somehow - just wondering if I should email copy or post copies of the letters to CCCS so they will kindly re-contact the creditor for me?

Anyway, that's my rambling over for the evening promise..sorry if i've missed people out.. trouble is I get so caught up in reading all the threads and laughing at the bullseye comments and learning stuff about cars and putting things into perspective that I forget who posted what...:o

Have a great weekend everyone :beer:

Reformed_Shopaholic_2

Jvic28 wrote: »

Hello,

I hope someone can help. I'm likely to be spending a lot of time on this site as I try to sort out the mess I have got myself into.

I have a pack on the way from CCCS but have no idea what the next steps will be when the pack arrives. Can someone fill me in a little of what will happen as I am very anxious.

Also, I have a lot of creditors expecting payments now, not huge amounts but I really can't afford to make payments anywhere near what they are asking. What should I do next?

Really can't wait to start getting this sorted out as I'm fed up of debt playing on my mind.

Thanks

Welcome Jvic I'm sure the guys will be on to post some helpful info. soon. In the meantime, well done for taking the first important step :T

I can't offer too much info I'm afraid except to say this site is an absolute lifeline and a goldmine (not cash but can save you lots of cash!) of knowledge, advice and support.

I'm making my first cccs payment in next few days and have had a couple of letters from some of the creditors saying my offer of payment (made through cccs) isn't enough, but I will stick at it..keep in contact with CCCS and everyone on here and hopefully come out the other side...a well quoted phrase on here "you cannot pay what you haven't got" is very true and as long as you have support from CCCS or whoever you take you DMP out with and the lovely people on here you'll be fine.

Creditors won't be happy but you will start to take control back of your debts and your life.

Am sure you'll get some useful info and support soon

TakeittotheLimit.

Jvic28 wrote: »

Hello,

I hope someone can help. I'm likely to be spending a lot of time on this site as I try to sort out the mess I have got myself into.

I have a pack on the way from CCCS but have no idea what the next steps will be when the pack arrives. Can someone fill me in a little of what will happen as I am very anxious.

Also, I have a lot of creditors expecting payments now, not huge amounts but I really can't afford to make payments anywhere near what they are asking. What should I do next?

Really can't wait to start getting this sorted out as I'm fed up of debt playing on my mind.

Thanks

When your pack comes it will have in it a letter that you send to your creditors telling them that you intend to start a DMP with CCCS,you will need to photocopy it for each creditor that you have then send it off along with a token payment I just put in £5 to each of mine but you could put just a £1 in.

flounder1

Hi all - sorry - dont know where to start a new thread
i've been a lurker for a while and have finally built up the couage to speak to the cccs who are putting together a dmp for me.
Before being pregmnant my husband and i were quite care free with money and both on good wages and got carried away.
I'm now back at work pt and the cards are drowning us. We're just managing to pay back minimum repayments and have decided to get it sorted,

Is it normal to feel scared about doing it all?
Also, i have to get a new bank account - any suggestions? with hsbc at the moment
My husband is still a bit unsure about it re the time its over and how it can be sorted like that?

Sorry to ramble on; just unsure about it all.

Any advice or words would be most helpfukl.

Thanks a lot

cloudnine_2

Hi Flounder1 and welcome to the site. You're in good company and a majority of us have been, or are in, a similiar position to you. I'm with CCCS and have been for four months now, so its still early days. As to your question about being scared? I was beside myself last year as my debts mounted up. I still have the jitters every time the phone rings but, believe me, its nothing..absolutely nothing like it used to be. Once I took control of the situation, and you'll hear people on here talk about their 'light bulb moment!'...once I experienced my 'LBM' and admitted my debts, confronted my debts and acted , by contacting CCCS, the stress started to slip away. Hey, not totally, and it never will...but, I got my life back and in control. So, whilst I can't say you won't be scared, you've made the first step in recovering your dignity. I too had to change my bank and, the best advice I received was to choose a bank that isn't affliated to any of your debts. Manu Cards have a direct or indirect relationship to certain banks. Best you don;t choose those. Good luck and keep on asking the questions..

yellowmonkey

flounder1 wrote: »

Is it normal to feel scared about doing it all?
Also, i have to get a new bank account - any suggestions? with hsbc at the moment


Any advice or words would be most helpfukl.

Thanks a lot

Try this link http://www.payplan.com/debt-library/miscellaneous.php

From what I can see They are only connected with First Direct

All the best

ym