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Hi
Can I arrange a DMP myself rather than go through a company. If so what is the fairest way to distribute excess income after expenditure. I owe £43k to 5 diferent creditors with varying pecentage of amount owed ie 55% to NR, 35% Abbey, 7% egg credit card,4% MBNA credit card and 1% store card. Should I take my despoable income and offer the equivelant percentage as a monthly payment? This would mean that NR would get £213 as appossed to £298 but Abbey would only get £132 as appossed to £265.

Hope this makes sense.

Thanks
Donna

Yes you can do a self-managed DMP Dee - but you may not be taken seriously by your creditors and it is unlikely that this will arrest creditor pressure.

You will need to take your disposable income and divide it equally in the same proportion that you owed to creditors - but not in the way you have above. Say you have disposable income of £400 per month, you then need to apply the percentages to that figure so that the end result is that all of the payments add up to £400 - eg 55% of £400 equals £220.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

Thanks Melanie

The calculations are as I expected (I probably didn't explain it very well) I want to try this first because my circumstances may change soon making it possible for me to fuly meet my obligations.

Thanks again, if anyone has any experience of such an arrangement I would be interested to hear how or if it worked.

Dee

Hi Dee, I agree with Melanie regaeding creditors taking you proposal seriously. But if you do intend to try it you should research the type of letters to send to creditors

Beechy

Hi Donna,

There's no reason why you should not work on this yourself; your creditors should appreciate your sincere efforts to repay your debts.

Be sure to include a breakdown of your income and expenditure with your letters to your creditors.

This statement of financial affairs will justify the offers of repayment that you are making.

Under the BBA code your creditors are expected to deal with cases of financial hardship sympathetically; I wish you good luck.

Andrew Graveson
Mortgage Broker & Bright Oak Debt Management
andrew@brightoak.co.uk
www.brightoak.co.uk