a friend has entered into a DMP with harrington brooks,they owe about £4,500 of which they pay £100 a month with charges from harrington brokks etc the DMP will last 72 months,the question is,will any creditor of whom there are 5 be able to come back after the 72 months and claim again for interest or charges etc regards terry
never cment on me speling its rubbish and i didnt go to schola lot okk
made bankrupt 1st august 2012 at 10.00am
now disharged so bankrupt no more thank god im free of debt now
Hi Terry, if they have agreed to freeze interest etc during the DMP they will not come back for more once the capital debt has been paid off. The 72 months is a conservative estimate and depends upon whether the creditors keep to their agreement to freeze these charges -- they are free to change their minds at any time. I would imagine though, for a debt of this size, they will let it ride, as long as your friend keeps making the payments. The DMP will run for as long as it takes to discharge the debts.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
cheers foggy,and like you said the creditors could come back at any time,can they also come back by law after the capital debt has been paid,really my friend dosent want to pay this for 6 years odd then the creditors decide that they would now like there interest etc,or they might as well go for an iva would that be better do you think
never cment on me speling its rubbish and i didnt go to schola lot okk
made bankrupt 1st august 2012 at 10.00am
now disharged so bankrupt no more thank god im free of debt now
As long as they carry on until the capital has been paid off they will mark the debt settled -- they can't re visit it after that. The IP will get written confirmation and that will be the end of the debt.
An IVA is a more formal solution -- but is a bit of a sledgehammer to crack a nut for a debt of £4.5k and, at that level of repayment wouldn't be accepted (although proportionately high .. probably not commercially viable).
Have they looked into a DRO:
DROs are specifically designed for people with few assets and a relatively low level of debt. You may be eligible for a DRO if your debt totals less than £15,000, you have less than £300 in assets (and a car worth no more than £1,000) and less than £50 in surplus income per month.
I realise they are paying £100 per month now -- but if that surplus drops ....... I know you can't get a DRO if you have recently been in an IVA, I don't know if that applies to a DMP.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
The 72 months is an estimate of the DMP term, it will depend on interest and charges from your creditors, if these are stopped early in your plan then the term should be similar to that quoted. Your DMP company is deducting £37.50p per month to manage your plan.
Once all debt has been paid then you will be debt free and the creditors won't suddenly demand the interest/charges that they have waived.
Keep an eye on statements and chase HB if interest and charges are still being applied after a couple of months
If your friend is going to be charged £39.50 per month why don't they choose to use a non paying dmp company like cccs or payplan as they do not charge you their service and your friend will be debt free sooner.
I would have to agree, that if a DMP is your chosen route then StepChange ( formerly CCCS) and Payplan are the ones to deal with it. They are actually funded by the creditors and do have a high success rate at getting interest and charges frozen. However, they might (in the role of a fox guarding the henhouse) be harder on the amount expected to be paid over each month --- but an enquiry costs nothing.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
thanks for all the advice my only worry is at the end of the payments one or more of the creditors will ask for the interest etc,then she will be owing money she thinks she has cleared another small question,with a DMP or an IVA regarding your credit rating etc which would do more damage to it,i fact she does have a vanquis credit card with £250 limit,im really just trying to advise her asd i think the £100 a month seems a lotto pay,im sure if she entered into an iva she would pay a lot less than that,i wonder why harrington brooks did not offer here an iva at all regards again terry
never cment on me speling its rubbish and i didnt go to schola lot okk
made bankrupt 1st august 2012 at 10.00am
now disharged so bankrupt no more thank god im free of debt now
I dont imagine she would pay less in an IVA and the return to creditors would be less than the fees an IP would take in.
As for impact on credit files,any missed payments will hamper future credit for a good few years and both a dmp or iva will add to the negative effect.
Paul
Discharged today the 8th feb 2012. View is much brighter now.
Continuing to rebuild our credit worthiness.
As said earlier, Terry, an IVA for that amount is just not viable, which is why it wasn't offered.
An IVA will stay on credit files for 6 years, as will all the defaults recorded in a DMP, Except, in an IVA the 6 years starts when the iVA starts, with a DMP it will start when the last default is recorded, which could be month 72 - 120.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Hi
Free is not always best if creditors are still charging interest, a commercial company can be cost effective if they are able to get charges/interest stopped
Wholeheartedly agree, Andy. I am no fan of the so called "charity" firms for a number of reasons, but, being in the creditors "employ", in these DMP cases, I would hope the creditors were more inclined to play ball.
It would be interesting to see some statistics.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
I understand what you are saying about commercial companies but I have been with CCCS for almost 5 years and all my creditors have frozen interest and charges from the off set except barclaycard they have started charging interest as I am paying more than the minimum payment.
