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Background to how I got into this mess:
Around 10 years ago I had a well-paid job and a top notch credit score. I had a few credit cards I hardly used, but no outstanding debt. I went into a lone business venture for a pension pot. I borrowed heavily through bank loans. They couldn’t chuck the money at me fast enough. A few months later, completely out of the blue, I was made redundant by my employer of many years. For the first time in my life, I got depressed. Very depressed. Then the business venture collapsed, and things got even worse. I was out of work for the best part of a year before finding a (much lower paid) job.
Anyway, during the period of un-employment my finances were running out. I ended up using the credit cards to make the repayments on the loans, then also to make the repayments on the cards, before everything was maxed out, I ran out of money, and found myself well and truly up the proverbial creek. I had around £125k of unsecured debt with around a dozen creditors, some pre-, some post-2007. At first I took on the creditors, with SARs etc, but wasn’t too sure what I was doing or what I was trying to achieve. Defaults followed, and unfortunately I ended up in bed with a Grantham based debt advice outfit who advised me a DMP was the best solution. All of the creditors opted in to the DMP, except one which took me to court. I defended myself as a LiP (some learning curve) and the outcome was a Tomlin order which I have long since paid off.
I had one other debt which was a car repossession which was not included in the DMP. Several times the lender threatened through their solicitor to issue proceedings, and each time I have advised them of my defence, then heard nothing more. That debt is now SB, but I will include it in my diary eventually as it is an interesting case study, which I count one of my few ‘successes’.
Fast forward 8 years of DMP, never missed a payment, and still over 40 years to go, I can’t really see the point of continuing (with the DMP). During that time the majority of accounts have been ‘sold on’ once or more, and some of the settlement offers they make show just how little they pay for the ‘debt’. What a system!
So I have now decided enough is enough, and I don’t need this hanging over me. I want my life back. I have seriously considered bankruptcy, but, practically speaking, this isn't the best option, given my age. I have little in the way of assets. I have a partner who is fully aware of my debt, but it is all in my name only.
Having stopped the DMP payments recently, the letters have started from creditors. However, I have found this excellent site, taken encouragement from others that have gone down the same path before, and I’m up for the challenge. I'm not looking to avoid paying debt, but when it appears that creditors and debt purchasers haven't acted legitimately, or bothered to follow the rules prescribed by law, then they need to be challenged to prove they have done so.
Even getting to this point, I feel so much better, already like a weight has been lifted from me. So, here goes
Thanks to Pixie for a ready made format for diary threads, which I have gratefully plagiarised.
Key:
Red text = creditor action
blue text = my action
green text = comment
Around 10 years ago I had a well-paid job and a top notch credit score. I had a few credit cards I hardly used, but no outstanding debt. I went into a lone business venture for a pension pot. I borrowed heavily through bank loans. They couldn’t chuck the money at me fast enough. A few months later, completely out of the blue, I was made redundant by my employer of many years. For the first time in my life, I got depressed. Very depressed. Then the business venture collapsed, and things got even worse. I was out of work for the best part of a year before finding a (much lower paid) job.
Anyway, during the period of un-employment my finances were running out. I ended up using the credit cards to make the repayments on the loans, then also to make the repayments on the cards, before everything was maxed out, I ran out of money, and found myself well and truly up the proverbial creek. I had around £125k of unsecured debt with around a dozen creditors, some pre-, some post-2007. At first I took on the creditors, with SARs etc, but wasn’t too sure what I was doing or what I was trying to achieve. Defaults followed, and unfortunately I ended up in bed with a Grantham based debt advice outfit who advised me a DMP was the best solution. All of the creditors opted in to the DMP, except one which took me to court. I defended myself as a LiP (some learning curve) and the outcome was a Tomlin order which I have long since paid off.
I had one other debt which was a car repossession which was not included in the DMP. Several times the lender threatened through their solicitor to issue proceedings, and each time I have advised them of my defence, then heard nothing more. That debt is now SB, but I will include it in my diary eventually as it is an interesting case study, which I count one of my few ‘successes’.
Fast forward 8 years of DMP, never missed a payment, and still over 40 years to go, I can’t really see the point of continuing (with the DMP). During that time the majority of accounts have been ‘sold on’ once or more, and some of the settlement offers they make show just how little they pay for the ‘debt’. What a system!
So I have now decided enough is enough, and I don’t need this hanging over me. I want my life back. I have seriously considered bankruptcy, but, practically speaking, this isn't the best option, given my age. I have little in the way of assets. I have a partner who is fully aware of my debt, but it is all in my name only.
Having stopped the DMP payments recently, the letters have started from creditors. However, I have found this excellent site, taken encouragement from others that have gone down the same path before, and I’m up for the challenge. I'm not looking to avoid paying debt, but when it appears that creditors and debt purchasers haven't acted legitimately, or bothered to follow the rules prescribed by law, then they need to be challenged to prove they have done so.
Even getting to this point, I feel so much better, already like a weight has been lifted from me. So, here goes
Thanks to Pixie for a ready made format for diary threads, which I have gratefully plagiarised.
Key:
Red text = creditor action
blue text = my action
green text = comment
)
Comment