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- Tue Mar 27, 2018 4:23 pm #473011 Hi,

Me and the wife have had our DMP for 7 years now and paying the amount I do We still have 7 years to go. My credit file and my wife's are both really good now as the defaults are gone.

We want to sell our S/O house and use some of the equity to pay the remaining balances off....BUT at reduced FFS so that we have enough left over to put down as a deposit for a new house. I guess my question is will we be able to offer our creditors say 50% of the remaining balances as FFS if they don't know I have sold the property and say I have just "acquired" some cash?

Otherwise we will stay as we are and pay them off over the next 7 years.

[JaneClack]

- Fri Mar 30, 2018 11:46 am #473031 If you have been in your DMP for seven years the chances are that very few of the debts have remained with the original creditors. Depending on when the defaults were put on your file, they sit there for 6 years as you know if you live in England, Wales or Northern Ireland. If the creditors all defaulted the debts in the first year of your DMP they will have gone.

You can sell your house in a DMP - unless any creditor has gone for a CCJ and charging order which you would know about as that debt will then be secured and paid from the proceeds of the house sale - and get started again whilst paying the amounts due on your DMP. Once you know what the mortgage/rent, council tax and bills are you would be in a position to offer full and final offers. If your DMP is with Payplan they can do this on your behalf.

One can never tell how much a creditor will accept in short settlement - a full and final offer. Some may accept 50% - others want 70 or 80% - it depends on the creditor, the amount you are paying and sometimes even the time of year.

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