Unenforceability Vs DMP

[flatstanley]

Re: Unenforceability Vs DMP

At the top of this page you mention that default can occur post-DMP. I'm confused.

Are you saying that if you have a DMP with CCCS, successfully complete it and pay off a debt, then the creditor will definitely put you in default afterwards?

Interested in knowing this as my DMP will last approximately 5-6 years. Clearly, I will move to get all debts defaulted today, if there is a risk of a default in 6 years time.

[Never-In-Doubt]

Re: Unenforceability Vs DMP

At the top of this page you mention that default can occur post-DMP. I'm confused.

Did I? Where? But yes, it can! A DMP is only a debt management plan, unless you make full payments to the account the lender can and will default you.

Are you saying that if you have a DMP with CCCS, successfully complete it and pay off a debt, then the creditor will definitely put you in default afterwards?

Nope! I've never said that! Basically if you're on a dmp with anyone and pay it off, then any late payment markers remain for a period of 6years so in essence the "bad" account would remain for 6yrs since last payment made. So say you went on a dmp in Jan 2005 - finished paying in Jan 2010 - the account(s) would still be visible (along with all late payment markers) for 6 more years meaning it is there in total until 2016. If, however you default, then go into a payment plan - no matter what, after 6yrs the account will be gone (forever) from your credit file whether you pay it or not. So using the same theory, if you went on a dmp in Jan 2005, and defaulted in March 2005 then by Feb 2011 your credit file will be clear of the account.

Interested in knowing this as my DMP will last approximately 5-6 years. Clearly, I will move to get all debts defaulted today, if there is a risk of a default in 6 years time.

You do right to get defaulted sooner rather than later - naturally. See above point for details....

[jaci]

Re: Unenforceability Vs DMP

Hello Everyone

Sorry I went missing - long story short - as I mentioned somewhere a long time ago I had a very poorly little un, which resulted in a of hospital stay, he's doing a lot better now though but for a while he was so poorly I thought it best to continue with the DMP and focus my attentions on him.

Anyhow I won't bore you, I had my review with CCCS and while they have helped me massively I seem to be coming unstuck now ... I don't work at the moment, would love to but it's a real struggle trying to get something that fits around 2 kiddies and the OH's unreliable work pattern, as I said the OH's work and pay is unpredictable and his pay can vary massively from one month to the next, however when I had the review with CCCS they wouldn't accept it and insisted we worked on an 'Average' wage, and now everything seems so expensive and for the last few months the money has ran out well before the month!

I now don't know which way to turn - If I lower my DMP Payment, I'm going to be trying to pay this for the next fifteen ish years.

I was put off the unenforceability before as a lot of my debt comes after the all important date and when reading the diaries everyone else seemed to have so much more debt than me so I felt like my problems where nothing compared to other peoples.

So sorry for not returning - but if anyone has any help or advice for me it would be very welcome.

[Never-In-Doubt]

Re: Unenforceability Vs DMP

Do you think it's time to cease paying into the DMP?

Listen, if you could provide some basic info then we'll be able to help you more... can you confirm roughly how many creditors, total of debts and whether you own your home - then we'll be able to assist better, don't worry about things - we're here to help & can help!

[LooLoo]

Re: Unenforceability Vs DMP

Hi Jaci and welcome back - really glad you little un is on the mend.

I see that Nid has all ready as for some information from you - and as he says please try not to worry this site has amazing support.

good luck

x

[jaci]

Re: Unenforceability Vs DMP

Thanks

The number of creditors is still the same (11) and don't think the debt total has changed that much since my last posting, though I'm imaging I need to see a more up to date credit report?

We have a mortgage on the house, house is worth around £150k and the mortgage is for just a tad under £100k.

[Never-In-Doubt]

Re: Unenforceability Vs DMP

Thanks

The number of creditors is still the same (11) and don't think the debt total has changed that much since my last posting, though I'm imaging I need to see a more up to date credit report?

We have a mortgage on the house, house is worth around £150k and the mortgage is for just a tad under £100k.

Ok, so the worse that "could" happen is you get a CO against you meaning if you sell up they would want a second charge, however if you do not sell then it has no importance!

£23k owed on 11 accounts is small, i'd not worry too much about it - may be worth considering UE? Only you know what is best!

[jaci]

Re: Unenforceability Vs DMP

£23k owed on 11 accounts is small, i'd not worry too much about it - may be worth considering UE? Only you know what is best!

I guess that's what I'm asking ... Is it worth going through with UE for small amounts?

[Never-In-Doubt]

Re: Unenforceability Vs DMP

I guess that's what I'm asking ... Is it worth going through with UE for small amounts?

If you cannot afford the dmp repayments, then yes - sure.

No harm sending off the CCA request and see what transpires is there...?

[jaci]

Re: Unenforceability Vs DMP

Sorry but the charging order bit has confused me, Do you mean they can get a charging order if an accounts unenforceable or if I'm just not paying the one's that are?

[Never-In-Doubt]

Re: Unenforceability Vs DMP

Sorry but the charging order bit has confused me, Do you mean they can get a charging order if an accounts unenforceable or if I'm just not paying the one's that are?

Ok, you need to read the UE Diaries or i'll be here all day repeating the info there. Basically nothing is legally sorted, you make the declaration of unenforceability - OBVIOUSLY the lender/dca will dispute this so some take it to court, others back off.

Its a catch 22 however you look at it, but if the amounts are small then it's unlikely anyone will go for a CCJ and/or a CO. You must be CCJ'd prior to any CO being granted, therefore if they threatened court you can get out by making payments to that sole account, prior to any action.

Make sense?

[jaci]

Re: Unenforceability Vs DMP

Ok, you need to read the UE Diaries or i'll be here all day repeating the info there. Basically nothing is legally sorted, you make the declaration of unenforceability - OBVIOUSLY the lender/dca will dispute this so some take it to court, others back off.

Its a catch 22 however you look at it, but if the amounts are small then it's unlikely anyone will go for a CCJ and/or a CO. You must be CCJ'd prior to any CO being granted, therefore if they threatened court you can get out by making payments to that sole account, prior to any action.

Make sense?

Now I'm confused (doesn't take much)

I thought it went like this ... If an account's found to be UE, it kind of reaches a stalemate where they can chase the debt but not actually do anything about it such as a CCJ.

Sorry if I'm missing something here ...

[Pixie]

Re: Unenforceability Vs DMP

Good to see that the little 'un is improving.

It all depends on the lender but if the amounts are small it's unlikely they'll go for court action, though they will threaten it. If you read the letters carefully they usually contain the word may.

[Never-In-Doubt]

Re: Unenforceability Vs DMP

Now I'm confused (doesn't take much)

I thought it went like this ... If an account's found to be UE, it kind of reaches a stalemate where they can chase the debt but not actually do anything about it such as a CCJ.

Sorry if I'm missing something here ...

No, that is not the way it works.

See this and read it: ---> UPDATED - A Full Guide to Unenforceability

Then read more by visiting the diaries here: ---> Unenforceability Diaries

Then come back with questions

[jaci]

Re: Unenforceability Vs DMP

*heads off to read more*