Your views and questions.

Moderators: TalbotWoods, JaneClack

By jrb
#77366 Hi

I have been reading alot of the topics on this site and the replies and advice given and would like to know if someone could help me with my dilema.

I am currently on a DMP with CCCS, I have £111K worth of debt :oops: , with 18 creditors. My monthly payment to CCCS is £280 per month, before being accepted on the DMP, I was advised by Debt Free Direct that I should make myself bankrupt, but I did not want to lose my home. I have a child, we live in a small home which has no equity and I currently have secured loans.

I have just had a CCJ recorded by Direct Line, but I have not yet had confirmation from the court as to whether my monthly payment offer is acceptable. I currently owe £20k to direct line. I have since received an interim charging order from the Court for the above Debt. Does this mean that Direct Line can request the sale of my property? :( I don't know what to do. Most of the other creditors have accepted my DMP offer, but there are still 3 creditors who are chasing and are still refusing the offer.

I am so worried, I have spoken to CCCS who have advised me to wait until the matter can be heard in court, but I don't know what to expect. My head is all over the place :cry: Any advice would be appreciated.
By Mel_Odious
#77369 You should attend the Court Hearing and show that you are offering all you can afford. The Court may grant a Charging Order but this usually means that they will get their money when the house is sold. If your house is in negative equity you would not necessarily lose it in bankruptcy.

By jrb
#77373 With the amount of debt I have and the surplus amount I have for my DMP, it is going to take around 30+ years to pay. Would it be better sticking with my DMP or would bankruptcy be the best route to take. :?:
User avatar
By Yogi Bear
jrb wrote:With the amount of debt I have and the surplus amount I have for my DMP, it is going to take around 30+ years to pay. Would it be better sticking with my DMP or would bankruptcy be the best route to take. :?:

To be quite honest, I think you need to ask CCCS this question. I must confess I'm a little puzzled by the fact that on the face of it, their willingness to negotiate a DMP for you seems to conflict with the advice given to you by Debt Free Direct about going bankrupt - although I'd rely more on CCCS's assessment of your situation, because they're not trying to sell you anything! However, 30+ years is long in DMP terms - certainly a lot longer than the ones they normally do, which again makes me think there may be something about your circumstances which makes a DMP preferable to bankruptcy - but I'm afraid I don't know what that might be. The only thing that raises a question mark in my mind is the secured loans and the effect a bankruptcy would have on them, but I'm only guessing.

To answer your other main point: if only 3 out of 18 creditors are still holding out, there's an excellent chance that CCCS will be able to apply enough pressure on them to fall into line with the other 15 and accept: after all, if they don't they have a relatively limited range of options. I'm not sure how long your DMP's been going for: creditors can be awkward at first and it can take some little while before it all settles down and starts running smoothly.

You do always have the option of going for bankruptcy at any time, if it doesn't work out, though. All I would say is that you need to take expert advice and consider all the implications carefully before deciding.
By jrb
#77387 When I had my first telephone interview with the CCCS counsellor, I was given the option of a DMP and Bankrutpcy. When the word Bankruptcy was mentioned I was so freaked out, all I could think of was the fact that I would lose my home and my car :cry: Although I was informed by Debt Free Direct that I would not lose my home because there was no equity in the property and also the car is needed to take me to work, CCCS did say that there could be a possibility that I may not keep the house but I would have some time to look for alternative accomodation. I have no mortgage or secured loan arrears. I have taken all my priorty accounts into consideration and have a surplus amount of £280 left which is currently being shared to all other creditors.

I have only been on the DMP for 5 months, therefore I have 30+ years to go. I have 1 CCJ already and an interim charging order set against the property. The interim charging order is worrying me because I am concerned that after all this I could still lose my home. Is there anyone who has been in a similiar situation. :?:

I did get to the stage of booking a hearing date before I started on the DMP but was advised by CCCS to cancel it until I had my interview with them. I know it was the right thing to do, but every time I receive a court letter I start to panic and I think that this is it now, the court is going to order me to hand over everything.