Your views and questions.

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By nitemare
#166792 Hi there. I have a £60k debt, which I have been paying ok until now. But I can't cope for much longer, and have been in contact with CCCS. They suggested a DMP over a 6 1/2 year period, and this would work for me.

I have spoken to National Debtline and confirmed with them that the DMP route is suitable, but reading through this forum it seems like the DMP is not completely simple.

If CCCS are negotiating on my behalf, can I still incur county court judgements? Are there any other hidden nasties? Will I just stop paying my regular payments and pay a single one to CCCS?
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By Yogi Bear
#166798
nitemare wrote:I have spoken to National Debtline and confirmed with them that the DMP route is suitable, but reading through this forum it seems like the DMP is not completely simple.

If CCCS are negotiating on my behalf, can I still incur county court judgements? Are there any other hidden nasties? Will I just stop paying my regular payments and pay a single one to CCCS?

Nothing in life is ever simple - but DMPs are simpler than most things. :lol:

If the offers CCCS make on your behalf are accepted, then in most cases provided regular payments are maintained the creditors will not take Court action. They could, but by and large they tend not to. There's slightly more of a problem if they don't accept the offers, but you often find they simply dump the debt off onto a DCA instead.

The main nasty is that because the DMP isn't binding on the creditors (or on you, either, for that matter) the creditors can refuse to renew the offers and/or reinstate interest. Getting the creditors to freeze interest in the first place is a lot easier said than done in fact. :( The other thing to be wary of is that some creditors are known to go for charging orders if you have property - especially one with any appreciable equity in it.

And yes - you just pay CCCS one monthly payment and they distribute the agreed pro-rata amounts round the creditors for you.
By nitemare
#166800 Thanks!

What's a charging order? I do have a joint mortage with my separated wife. I pay for the mortgage, and I couldn't not pay, because I am the main income provider, and my children live in the house.

If a dept is passed to a DCA, will CCCS deal with them instead?

Are offers renewed yearly?
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By Yogi Bear
#166806
nitemare wrote:What's a charging order? I do have a joint mortage with my separated wife. I pay for the mortgage, and I couldn't not pay, because I am the main income provider, and my children live in the house.

If a dept is passed to a DCA, will CCCS deal with them instead?

Are offers renewed yearly?

It's a way of enforcing a CCJ - the creditor applies to the Court for a legal charge to be put on the house and basically the debt is repaid from the proceeds when the house is eventually sold. They can't normally be used to force a sale.

If a debt is passed to a DCA, then they'll probably contact you - but you just refer them to CCCS to deal with.

Initial acceptances are often for six months or sometimes only three, but with an established DMP, reviews are done annually, yes.
By nitemare
#166815 Ah. So it works like this?

1. Creditor accepts DMP; I make my payments and review at regular intervals, which could be 3 months to a year.

2. If the Creditor rejects the offer, they may apply for a Charging Order, which claims any proceeds of the house when sold.

3. ...Or they can pass the debt to a collection agency, who can in turn appl for a Charging Order, but I should not talk to them, other than to refer them to CCCS?

So should I transfer the ownership of the house to my wife, and continue to pay for the mortgage as normal.

Finally (for now!): One of my credit cards is held by HSBC, as well as my current account, savings and joint account which I hold with my wife and through which I pay my mortgage. Can HSBC affect these accounts? Should my wife take sole charge of the joint account?
By sbk3
#166816 you need to open a new bank account and transfer any income to this and any direct debits hsbc can offset any money in these accounts towards your debt with them which i guess could leave you with less income or none if they were greedy,

you need to do this asap if your wages or similar get paid into these accounts hsbc are not going to like being paid less by yourselves off the credit card or loans.

sbk xx
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By Yogi Bear
#166820
nitemare wrote:2. If the Creditor rejects the offer, they may apply for a Charging Order, which claims any proceeds of the house when sold.

3. ...Or they can pass the debt to a collection agency, who can in turn appl for a Charging Order, but I should not talk to them, other than to refer them to CCCS?

So should I transfer the ownership of the house to my wife, and continue to pay for the mortgage as normal.

A Charging Order is only a possible hidden nasty: the creditor has to go to Court and try for a CCJ first. If you were to re-iterate an offer to pay by instalments the Court might well rule that they'd been unreasonable in turning it down and make an Instalment Order instead.

You'd really need to seek advice about transferring ownership of the house. One obvious consequence I can forsee is that is that you'd then be paying a mortgage on a house you no longer owned - which has implications for your mortgage lender. :?
By Archie
#168323 Hi nitemare,

Don't worry about CCJ's and likes until and IF they ever appear. I ended up with one with the Nationwide. Judge ruled in my favour as amount offered was more than fair pro rata and considering my other creditors.

First though I can only stress again to shift everything out of HSBC to another bank. Preferably again a non-creditor. Savings etc can be moved to other banks and lots of them have good rates especially online.

If you require full service current account most of us on here would suggest The Co-operative Cashminder and Natwest Step Account. These come with Visa Electron (Co-op) and Solo (Natwest). Another one to have a look at is citibank.co.uk sterling current account with Visa debit card and a cheque book. Your Visa does not guarentee your cheques but your debit card is not limited by certain outlets the way Electron and Solo sometimes are. Finally you can put your savings there to for easy access. You do have to tell them you want a visa debit card linked to your current account. Citibank branch credits such as hard cash and cheques are deposited at Lloyds Tsb. (These are suggestions and I'm not trying to advertise one over the other). Change your bank sooner rather than later so that your CRF doesn't show many red flags.

I'm with Payplan and they have been great. Don't worry about your creditors or any threats/tactics they try to use against you.

You have come to the right place for help, support and advice. Oh and answers to questions whenever possible.

All the best with your chosen rectification :D

Regards,

Archie