please help and advice

[lmg]

Thanks. looks like a good solution than DMP

i will be debt free in 60 months and interest will be frozen and possibly debt written off as well

i will be coming out of the hp loan payments in 20 months and i should be able to contribute more later on

[Reviva UK]

Sounds like a plan.

Now all you need to do is find an IP who you can communicate with and work with over 5 years.

couple of good ones on this site.

[lmg]

thank you to all for your valuable advice i will now proceed with the IVA route

[lmg]

i have been told that the iva is not possible to proceed and they are advicing me to do the DMP since i will be more than the debt if i go with the iva

[lmg]

i have been told that the iva is not possible to proceed and they are advicing me to do the DMP since i will be more than the debt if i go with the iva.

i just want to know if i proceed with DMP interest and charges are frozen.

my creditor list is

mbna 3900
barclays 4600
egg card 1000
egg loan 11000
halifax 2000
barclays od 1500
B&Q store card 1600

Please let me know

[MelanieGiles]

Why are you being told that an IVA is not possible for you lmg?

[Andrew Graveson]

Hello lmg,

It cannot be guaranteed that interest and charges will be frozen in a DMP (it's at the discretion of your creditors) but in practice around 85% of the accounts that we are managing for our client's have interest and charges frozen on them.

Many of those accounts where this hasn't happened are for new clients for whom negotiations are continuing.

The reason so many creditors will agree to do this is that they take seriously their responsibility to treat customers experiencing financial difficulty sympathetically.

None of the creditors that you list are noted for avoiding this responsibility. Their support is likely if you are experiencing financial difficulty and doing your best to repay the debt as fast as you are able to via a DMP.

[lmg]

if i end up paying my monthly contribution i will end up paying more than the existing debt.


My initial payment will be 150 which is fine and once my HP payments (430) end in 22 months and they say that i need to include that as additional payment and once you include this and do a 5 yr plan i am paying more than what i owe to creditors.

They are saying the DMP is the best way forward.

But i dont like the DMP since there is no gurantee that the creditors will not proceed with legal action

Please advice

[Andrew Graveson]

It's undeniable that your creditors could persue legal action under a DMP if they perceived that route represented their best course of action to make a recovery.

In practice generally it's very rare.

Under a DMP you'd be making an offer, based on an increased payment when your HP ends, that represents a comparatively rapid return of the money owed to your creditors.

Sounds to me like they'd want to work with you rather than against you if a full recovery within five years were possible.

[lmg]

Thanks Andrew,

Let say out of the below creditors list

mbna 3900
barclays 4600
egg card 1000
egg loan 11000
halifax 2000
barclays od 1500
B&Q store card 1600

out of 4 distinct creditors 2 or 3 creditors accept and continue negotiating with the other one and can the accepted creditor reject later on down the line if i even pay my monthly payments on time

Also is there is any option to propose a full and final payment later on in case that opportunity arise down the line say in 1 or 2 years

Please advice

[Andrew Graveson]

A DMP is more flexible than some other problem-debt solutions. This to some extent counteracts the drawbacks associated with the lack of certainty compared to an IVA or Bankruptcy.

For this reason you could certainly offer a full and final settlement after a couple of years. Many people do.

A creditor may reject a DMP but if you are paying the most that you can then there is little that can be done. For example if you were taken to court it is highly unlikely that a judge would ask you to pay more than you can afford. There isn't much reason therefore to take someone who is making their best offer to court.

What happens more often is that the debt is sold to a debt purchaser. They may have paid pennies in the pound to buy the debt and therefore be very receptive to an offer of a full and final settlement when it becomes possible in the future.

[lmg]

Sorry again, Say a creditor accept the DMP and then down the line can they reject and take me to court and proceed with legal action even though i pay on time. Do they accept in writing to you when they are happy with the DMP.

Please advice i am bit nurves

[Andrew Graveson]

Hi,

A DMP will generally be accepted for a fixed amount of time (often 6 months). The creditor will then request that the arrangement be reviewed (just like an annual IVA review). This seems fair enough all around as circumstances may have changed for the better or worse.

Legal action is very unlikely if an accepted arrangement continues to be fair for all.

Acceptances are generally provided in writing.

[MelanieGiles]

I think that the advice to do a DMP is the right advice, as you do have the ability to make a very good offer, and creditors would be unlikely to allow you to retain a car with such high HP payments to be frank.

I would suggest that you give Andrew a call as he is vastly experienced in these matters and fending off aggresive creditors. In your case you need someone you can trust to be on your side, and companies like his will ensure that your best interests are represented appropriately.

It looks like you have the makings of a very good offer, and I would be suprised if your creditors did not eventually settle down and receive their repayments with little bother.