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By longtobefree
#457493 Hi ,
I have had advice from you before but would just like to clarify a few things. I am on a dmp with payplan which has been running fine for 2 years. I now have made the decision to sell my flat which after the sale would leave me with approx £35,000. My debts outstanding are £52,000. I am hoping to move to rented Accomodation. The reason for decision is dmp will never finish in my lifetime. I am now in arrears with my mortgage ! And I am struggling to find the £100 to pay to the dmp and not sure of a way out apart from selling. I also have very high annual service charges which are totally unpredictable. Recently they asked me for £2k hence the mortgage arrears if £549. Anyway decision has been made and the flat goes on the market this week. The questions I have are . 1) my debts were all defaulted in 2011 if I settle them will they come of my credit file in 6 years ie 2017? Or will it be 6 years from settle date?
2) will I be able to rent through a letting agency will they be able to tell that I am on a dmp? Can they see my credit report? There are no ccj or charging orders on my account. I have a current account and a debit card.
3) would my creditors know about my equity from sale? Would I be able to retain some of it. Really need to replace car it's is 15 years old and I need a car for work as part of my contract of employment.
4) legally are the creditors able to see my saving account
5) I have already had 2 offers from creditor with 50 per discount on one and 25 on the other.
Trying to plan this and don't want it all to go wrong.
Ultimately I would like to pay of debts, retain a little and rent a home for me and my 2 children. One is also planning to go to university so would also like some of the equity for her
Would really appreciate any advice ? Don't want to revisit should I sell my home as I have decided a salary of £25,000 it was not a good idea in the first place! Managed to buy with government loan of 25 percent which is repayable at 25 percent of sale price. Reason for debt has been a combination of household maintenance service charge and generally affordability and using credit freely to pay Peter !
By nomlas
#457703 Hi and welcome. Will have to be brief, going out soon. The good news is you should have no problem renting as you have no CCJs. Landlords can only view a certain ammount on your files.

When you sell make sure the account that receives the money is not one that is owned by any of your creditors. Upon receiving it I would withdraw it and stash it under the mattress for the time being, you will get almost nothing in interest at the present time anyway. Then you could re-shedule your DMP and reduce it quite sharply as you will have the all important NO ASSETS. The creditors have no right to see your bank statements.

I would also reduce your present DMP by at least 60% as you are struggling, it is quite understandable at this time of year and by the time they start to get shirty you would of hopefully sold.

This might seem to be advising you to avoid paying your debts but it is not the case. You would still be paying but only what you can afford. Your family must come first. Regards. -- nomlas
Last edited by nomlas on Fri Dec 13, 2013 9:01 am, edited 1 time in total.
By longtobefree
#457763 Thank you so much for your advice very helpful and you made me laugh out loud in the office with your matress advice. I had a visual image of £35,000 in notes hanging out of the edges!
Can I clarify how best to go about settling the debts of £52,000 or do I just carrying on paying the dmp and wait for them to write to me with offers. I would not mind giving £20,000 to the creditors but not sure if this will be enough for full and final settlement offers? It would be nice to close the door on my debts. It really hard enough loosing my home of 10 years but I am looking forward to not struggling and fed up of mentally calculating all the time. My children have part time jobs but they would certainly need some help with the university cost . I would appreciate any advice comments or potentially pitfalls as I so want to get this right for the children and me . Penny x
User avatar
By JaneClack
#457833 As you are in a DMP with Payplan, I am hoping you are aware that they have a department who would look into full and final offers for you after you have sold the property. I would suggest you continue with your DMP until the property is sold and you are in a new place with the things you need and then contact them about making the offers on your behalf. If you cannot afford the £100 telephone your case officer and have your budget revised and explain what you are doing.

No creditor is going to accept offers dependent on the sale of the property as usually they give a 14 to 28 day window with the offer outstanding. If they know how much money you will have available they will want all of it. So, sell, get into the new property with the things you need and then get Payplan to make the offers or even look at a full and final IVA at this time if you do not have a lot of disposable income - they will accept less in an IVA than in a full and final or short settlement.

Basically your case officer will be in a far better position to advise and suggest options if they have all the facts.

Good luck.
By nomlas
#457873 Fully agree Payplan are excellent but in this case if you declare all the equity you might receive you are a sitting duck. The reason I said take it all out and stash it is because you need time to think over all your options. You indicate that you want to make F&F offers, PLEASE dont do it for at least two years after the sale.

At the moment you want to get rid of all the debts which is understandable but just consider when you sell you will, hopefully, have a good bit of money but you have a family with major expenses looming and you need a newer car. Your debts will be unsecured, forget about them, apart from paying a nominal amount each month. Dont worry about having a clear credit file it wont make the slightest difference. I almost guarantee that if you start paying large amounts off you will regret it later when the cash runs out and you read about another multi million pound bonus paid to a corrupt banker.

If you took over your own DMP and just pay a little each month there is nothing they can/will do. If you still wish to pay after a couple of years then please do but take your time and enjoy a stress free time. Just my opinion and good luck. Regards. -- nomlas
By longtobefree
#457883 Hi nomias, I understand. Will sell then rent then weigh up my option. I will continue with the 100 a month in dmp and just advise them that I have moved. I will put money in bank and sort the children out with some money for their future , then in a few years once We have have settled will look at debts again ,Just a question after 6 years with defaults do the debts just remain on your file with the total? And the defaults come off? Or does the debt come of your credit file ? Just thinking ahead and want to be sure of my options. Thank you and Sarah for taking the time to reply things are looking a lot clearer now. Time for the Friday glass of wine me think!
By nomlas
#457933 The reason I suggested lowering your DMP at this time (it really is a good time to do it) is because you have indicated that you are behind with your mortgage, please sort the mortgage out first. The DMP is secondary, the mortgage must be the priority. Again just my opinion and enjoy the wine. Regards -- nomlas
By nomlas
#457943 Re the credit file: - I am not 100% sure but I think your debts will not be recorded on your file after six years from the default date. That does not mean that the debts disappear.

It makes little difference if you pay money for F&F as far as your file is concerned, eventually the file will come good. Again just my opinion. Regards.
User avatar
By TalbotWoods
#457963 Good advice from everyone here.

The debts will fall off your Credit Files six years from the DEFAULT date, so if the defaults were issued three years ago, then the accounts will drop in in three years time. So a bonus for you!

Tim
By longtobefree
#458063 Hi again,
Just looked at my credit file and a debt I have with mbna which they sold on to dca is marked as settled and had a £0 balance? I have not paid it and I am paying it back through dmp. Does anyone know why it says settled?

Also my current account is in there with my balance is that because it had a £50 overdraft facility or do bank accounts go on your file? Just thinking ahead would my balance potentially of £35,000 be then visible to my creditors? Can I ask solicitor to pay it into a saving account? Not that I have one! But I could open one with my bank I think.

Last questions regarding the dmp are you allowed to pay less than £100. I am with payplan. I was going to ask to lower my payments and make token payments if a £1.00 for 6 months so I could clear the mortgage arrears but was worried about a) winding up the creditors so they might revisit me and may go for ccj or charging orders? The building society have made the arrangement regarding lower payment so they are no chasing the arrears as I explained it would be less as I needed to pay service charge And I was hoping to resume normal payments in 3 months with a little extra towards the arrears. To be honest was hoping flat would be sold by then is they would get all there money back then any thought opinions on the best way forward again would be highly appreciated. Thanks again penny x
By nomlas
#458183 Penny,

PLEASE forget about your credit file for a while, it is shot for at least three years. It would make no difference whotsoeverif if you make F&F offers/ payments. After three years or so your file should be clear. But it does not mean that the debts go away.

The best advice I can give is, stash the cash, - Do nothing until well after you have sold. There will be plenty of advice on here, but for the time being: - If in doubt pay nowt and declare nowt!
User avatar
By TalbotWoods
#458203 Hi

nomlas is right in his advice, but to clear up the CRF questions.

The MBNA is a mistake, but Shhhh that one works for your advantage! Settled and paid off adds points.

The current accoutn will show all debts. Under law ALL bank accounts have to report to the CRF under the money laundering laws.

The saving account, long with the current accounts can not be seen by anyone, other than you and the banks. DCAs maybe aware that that you have an account but that is all. When someone applies to credit check you they don't see individual accounts (unless it is theirs), all they get is an over-view and overall score. So do not worry about this aspect.

With regards the DMP amount, you will need to talk to your DMP Supervisor. If there are genuine reasons then I understand the answer is yes.

Tim
By longtobefree
#458413 Thank you all for your advice . It has been so helpful. It took me ages to decide to sell but following advice from here. It hopefully prove to be a good decision for me and my children. Really looking forward to 2014 now! I will keep you all updated regarding the sale and how much i finally stash away under the matress! Take care and have a blessed christmas and all you hope for wishes for the new year . penny x