Being Made Bankrupt While On a DMP?

lisa-r_4

Hi guys,

After speaking with CCCS and them putting the frighteners on me, stating that even though I have no assets my creditors are still likely to bankrupt me, I wondered if anyone has had this happen to them? I know i'm only paying a small amount (just over £100) to my DMP initially, but that was with full intentions of increasing it within the next few months. CCCS have really scared me, and i'm now worried I don't have any options anymore other than bankruptcy (or sequestration here in Scotland. Your opinions/reassurance would be MUCH appreciated!

rayday2

I owe about £16k and I pay about £60 now and that is only recently initially it was £30 and I have been on a DMP for about 2 years. Touch wood the worst that has happened is default notices and being passed onto DCA.

I really don't think it would happen as I own my own house so they could really come after me if they wanted whats the point in doing it for nothing it costs them going through the legal system.

I would say bank on the worst being a company going for a CCJ - which when on a DMP the judge usually says OK they must pay what they are paying now. And this does not always happen its just the more realistic worst thing that can happen if that makes sense.

lisa-r_4

Thanks rayday. I owe a LOT of money though - in excess of £80k!! - but even at that, as you say if I don't have any assets what would be the point? I don't understand why CCCS told me that though - they said something about BOS and RBOS doing that quite a lot just now?

rayday2

All I have seen of BOS press wise is that they are writting off millions of bad debt, I assume and it is my guessing here that that means they will probably sell the bad debt onto DCA and write it off tax wise.

But the number one rule of a DMP is to worry when things happen and not try to plan your worries.

jacnorm

I am on DMP with CCCS and I owe 35k and at the min I can only pay 35 per month. It was 70 but CCCS have just reduced it and they never mentioned anything about the fact the creditors may still go for bankruptcy. I would hate to think they do as I would lose my tenancy.

lisa-r_4

Ahh, that sounds better then. I'm SUCH a worrier - I don't really want to opt for bankruptcy, but CCCS made it sound like I didn't have a choice!

Thanks rayday - i've been a fan of yours for ages now and know how knowledgable you are of creditors and the whole DM process. You've made me feel so much better. I think I might even manage a full nights' sleep tonight now!

lisa-r_4

I'm sure you'll be fine jac - please don't worry like i've been today. It's good to hear that you've been able to sustain your DMP on a small amount too. From looking through the boards, everyone i've seen that owes loads like me seems to be paying a few hundred pounds per month to their DMP, so it's good to see i'm not the only one and that I might be okay afterall. Can I ask have you been on yours for long? Were your creditors okay about it?

rayday2

lisa-r wrote: »

Ahh, that sounds better then. I'm SUCH a worrier - I don't really want to opt for bankruptcy, but CCCS made it sound like I didn't have a choice!

Thanks rayday - i've been a fan of yours for ages now and know how knowledgable you are of creditors and the whole DM process. You've made me feel so much better. I think I might even manage a full nights' sleep tonight now!

I think CCCS recommend bankrupcy because on paper what is the point in struggling for years when you can go through the process.

But we are humans and logic is not always the best course of action, so if you are prepared to budget and slog away at the debts then that is your personal best advice rather than the logicial clinical advice.

Did that make any sense?

I promise both of you a couple of years down the line DMPs are so automatic its just like paying any other bill but I appreciate it is hard at the stage you are at. Which is why it is best to ask away any little niggles rather than worrying, the people on here and in the DMP support thread (plug plug) are fantastic!

Gemmzie

I think it's fairly rare as most creditors would rather get £5 for 20 years then naff all out of bankruptcy.

Deep_In_Debt

I'm on a DMP with CCCS and I own my house with a bit of equity, I'm on my own and have debts of 27k. CCCS told me that at worst, the creditors would go for a charging order. On the whole, my creditors have been great - the odd one or two have been hell, but I know how to deal with them so they don;'t bother me any more. As rayday says, I'll worry about any legal stuff if and when it happens - there'll be loads of help on here if needed so until then I'll just keep paying my DMP.