Falling behind with DMP

racey84

Hi all,

I currently have a debt of about £16,600, built up from 3 credit cards (HSBC, Mint and Egg) and a graduate account with HSBC. HSBC have passed the debt on to a company call Metropolitan, while the other debts are still with Mint and Egg.

I started struggling with this debt last year and after a couple of default notices managed to get a DMP started. I have made all payments as agreed for the last 7 months or so, however my circumstances have changed, as I previously lived with my parents I didn’t have to pay bills or rent (though I did give my parents as much as I could afford to each month, as I felt bad still living off them at the age of 22). Now my parents have decided to move abroad, leaving the house for myself and another person I mange to ask to rent. The house will stay in my parents name as they have said they will continue to pay off the mortgage, however the bills are to be paid by myself and this other person, which is fair enough, but with bills to pay I can no longer afford to keep up with the DMP.

After I was told of my parents decision I asked friends for any money I could borrow in the hope of offering a full and final settlement, however I could only manage to borrow £1000, which isn’t really a good amount to offer, however I tried anyway and as expected Metropolitan have replied and said no, I am yet to hear back from Mint and Egg, but I am almost certain that will also be a no.

So my question is what will happen if I fall behind on my DMP plan? I know my credit history will be ruined, but to be honest I think it already is. What I am more worried about is the possibility of legal action or being made bankrupt, as I do not want to be an employee all my life, I do one day want to be my own boss. I am also worried about the threat of bailiffs, the only thing I own is my car which I guess is worth £2000-£3000, can they in anyway take the house, which is in my parents name?

Sorry about the long post and if you are still reading, thanks for your time! I would be really grateful for any advice anyone can offer.

rayday2

You need to get in touch with whoever runs your plan and get them to lower the payments to the companies.

skylight

Firstly, your credit rating will already be in pieces - you have defaulted on your original agreements and that will have been noted on your credit record already.

I would suggest calling CCCS or National Debtline. They can help to put a new DMP in place with your new SOA (now your income and expenditure has changed) and can advise accordingly. At the end of the day, if you cannot pay the current DMP it needs to be changed or you need to take a different course of action (IVA or BR). Being either on an IVA or being BR will not affect you being your own boss one day.

Regarding baliffs, they are tosh. They have no power and they know it - so the threats ensue. They will be only threats. *If* on the off chance and by some miracle one does turn up, don't answer the door and tell him to go forth and multiply. They cannot bash down doors, smash windows to get in or any other tosh that gets banded around about baliffs. (Council Tax arrears are a slightly different matter).

With regards to your car, in theory a baliff could take it IF you refuse to make payments AND a ccj is issued AND you default on the ccj AND you dont make efforts to pay. It takes time and is not going to happen next week.

So. Here is your 2-point plan.
1. Call CCCS or National Debtline for help and advice
2. Post your SOA (ALL income and expenditure) on here for some help as to where you can make savings. Get it accurate and use your statements etc for figures. For guidance on how to post a SOA, check out the sticky by southerscouser.

thepinkladez_2

i am expert as i am only just starting the process of a dmp, but when i spoke to cccs about what if my cicumstances change, they said to contact them as soon as possible so they can let your creidtors know, so i assume it will be the same for you? i am guessing they would re-do your budget and make revised payments to the creditors?
i am pretty sure that even at a worst case senario they wouldn't be able to do anything with the house as you say its all in your parents name and your debt isn't their debt.
i am sure someone much wiser will be along shortly to help you shortly.

thepinkladez_2

thepinkladez wrote: »

i am expert as i am only just starting the process of a dmp, quote]
:eek: whoops that was meant to say NO expert not that i am an expert! sorry!

skylight

thepinkladez wrote: »

thepinkladez wrote: »

i am expert as i am only just starting the process of a dmp, quote]
:eek: whoops that was meant to say NO expert not that i am an expert! sorry!

:rotfl:Hey, we are all "debt experts" in our own, strange way!!!!:rotfl:

thepinkladez_2

skylight wrote: »

thepinkladez wrote: »

:rotfl:Hey, we are all "debt experts" in our own, strange way!!!!:rotfl:

:rotfl: well actually your right!i am an expert at getting into debt!:rotfl:

HHH_2

Metropolitan are probably making money out of your DMP so contact CCCS and move your dmp to them and all you pay will go to your creditors. I guess CCCS will be able to renegotiate what you pay if you have enough left over each month to still run a DMP. phone them today they are really helpful.

ailsajayne27

My expenditure is dropping so I called CCCS said that, as soon as they received my new income they will organise a review... easy as that . If you aren't with CCCS use the bit on thier website and get the statements filled in. Once that's done it will say what course of action you can take.... they are very helpful and friendly.. for example on my old expenditure my petrol was £250, but they were happy to accept that as it was for work.