Andrew Graveson wrote:
One general statement that is made frequently on the site is that the creditors are always free to change their mind on contribution levels during the course of a DMP and demand more money. This statement is factually true. In reality we have not had a single case where agreement has been reached with a creditor and they come back subsequently looking for more. DMP's are technically vulnerable in this respect, but it's not a vulnerability we've seen creditors exploit.
Hello & thanks for your replies.
I am really interested by the above which I quoted from Andrew Graveson. When I spoke to CCCS they explained that DMPs allow me the flexibility of increasing my payments when I can and thereby reducing the length of time I take to make these repayments. I really want to pay back as much as I can but was worried about one of my creditors taking further action while I do this.
Is it true that financial institutions rarely pursue a person on a DMP? That is my biggest worry about them.
The CCCS suggested I go on a DMP with them as most financial institutions accept DMP proposals when submitted by them. Is this true?
They even said that Barclays (my biggest creditor) have an agreement with CCCS that the bank,once it accepts the DMP,will open a new basic account for me which is run separate from my debts.
I am in a job where my wages are guaranteed to rise by £10000 over the next 2 years hence I could reduce my proposed 8 year DMP by putting in this additional income when it becomes available.Also I plan on hammering the overtime when I can get it reducing the term even more.
I have read on here that if you work hard in an IVA or get a windfall where you manage to pay back 100p/£ to your creditors,you are liable for the IP fees. Is this not a disincentive for someone to work extra hard and try and pay back all they owe? Why do the overtime,take that promotion or accept that family loan if it results in you paying more?
From the information I have a DMP seems more flexible and less intrusive and more proactive than an IVA,am I wrong?
I'm so confused! At the moment I have not defaulted with any of my creditors but need to do something soon. Just concerned about creditors changing their minds and chasing me.
Any info would be appreciated.