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marvinmoomin77
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by marvinmoomin77 » Fri Mar 23, 2018 8:53 pm
Hi everyone.
This isn't strictly speaking an IVA question, as I have today set up a DMP with Stepchange.
The reasons I went for the DMP is because of the concerns of what impact an IVA may have on my new job (which I am starting next week).

The issue I have is, on the same day that I have had a DMP set up, I have received my first default notice from one of my creditors, which mentions the possibility of court action.

I am now really worried, because I believe that the job I have been successful in obtaining would not look very kindly on CCJ's/Insolvency. This is why I went down the route of a DMP after lots of consideration.

My question is, are Stepchange reputable enough to assist me in trying to prevent any CCJ's. I know that a DMP is not legally binding and so in theory, I could be taken to court, but in all honesty, I really fear that if I have any CCJ's added, that could genuinely affect my new job.

My new employer are aware of my debt issues, as I disclosed that fact that I am in arrears on a stringent vetting form.
However, at the time of vetting, I was merely in arrears by a couple of months to a few creditors, and so that is what I disclosed.
I am now going down the route of a DMP in order to avoid the ignominy of an IVA/Bankruptcy and/or a CCJ.

What I am asking is what is the likelihood of any creditor taking action by means of a CCJ. The offer I have made in the DMP is a "low start" but the contibution will increase after 6 months when I get a pay uplift.

I am absolutely desperate to avoid CCJ's, because that could potentially lead me to being out of a job, and then creditors would not be able to get much if anything back from me if I have no income.
I hope someone can advise whether my DMP would be likely to avert any CCJ's.

I think once I am settled into the role and working there, an IVA would potentially be an option in the future, although personally, I am hoping to keep it as a DMP so that I can pay back all that I owe, which is, I must admit, quite a considerable sum.

Hope some experts in here may be able to offer me some reassurance, or at least some crumbs of comfort that a CCJ is considerably less likely if I am in a Stepchange DMP.
I fully accept my accounts will default eventually, but I don't think that is an issue - it's just a CCJ that may well be.

Thank you.
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Foggy
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by Foggy » Fri Mar 23, 2018 9:11 pm
It is a difficult one to call as everything depends upon so many things: the amouint of debt, the amount of arrears, the proposed payment vs, the contractual payment as well as who the creditors actually are ( some are more sympathetic that others). On the plus side, Stepchange, being in part funded by creditors, will handle the DMP without deducting fees, so the creditors will see a little more of the money. They are well respected by creditors and, I gather from various sources, are pretty successful in negotiating DMPs with creditors.
marvinmoomin77
Posts: 14
by marvinmoomin77 » Fri Mar 23, 2018 9:18 pm
Foggy wrote:
It is a difficult one to call as everything depends upon so many things: the amouint of debt, the amount of arrears, the proposed payment vs, the contractual payment as well as who the creditors actually are ( some are more sympathetic that others). On the plus side, Stepchange, being in part funded by creditors, will handle the DMP without deducting fees, so the creditors will see a little more of the money. They are well respected by creditors and, I gather from various sources, are pretty successful in negotiating DMPs with creditors.


The debt is significant (10 creditors), but the arrears at present on each debt is only 2 or 3 months - so it's not gone on indefinitely.
The proposed payment pro-rata to my creditors is obviously significantly lower than my contractual payments. However, there is a very good chance (almost 100% certain) that after six months, my salary will increase by approximately £200 a month, which I propose to put entirely into the DMP - thus doubling my proposed payment.

I will do all I can to avoid a CCJ, because in all honesty, if that happens, I will lose my job, and then I'd have no option but bankruptcy, but with no assets (except a very old and knackered car worth about £800), the creditors would then get nothing from me.

I really am desperate. I thought taking out a DMP would be a good option, because until I am in post and have got to grips with where I am going to be working, I don't know if an IVA would be acceptable. Once I am in, I believe it would probably be OK.

My plan would then be, if, in 6 months time it's clear that a DMP will go on for too long, I could look into an IVA at that point, if my employer permits such a thing.
marvinmoomin77
Posts: 14
by marvinmoomin77 » Fri Mar 23, 2018 9:19 pm
marvinmoomin77 wrote:
Foggy wrote:
It is a difficult one to call as everything depends upon so many things: the amouint of debt, the amount of arrears, the proposed payment vs, the contractual payment as well as who the creditors actually are ( some are more sympathetic that others). On the plus side, Stepchange, being in part funded by creditors, will handle the DMP without deducting fees, so the creditors will see a little more of the money. They are well respected by creditors and, I gather from various sources, are pretty successful in negotiating DMPs with creditors.


The debt is significant (10 creditors), but the arrears at present on each debt is only 2 or 3 months - so it's not gone on indefinitely.
The proposed payment pro-rata to my creditors is obviously significantly lower than my contractual payments. However, there is a very good chance (almost 100% certain) that after six months, my salary will increase by approximately £200 a month, which I propose to put entirely into the DMP - thus doubling my proposed payment.

I will do all I can to avoid a CCJ, because in all honesty, if that happens, I will lose my job, and then I'd have no option but bankruptcy, but with no assets (except a very old and knackered car worth about £800), the creditors would then get nothing from me.

I really am desperate. I thought taking out a DMP would be a good option, because until I am in post and have got to grips with where I am going to be working, I don't know if an IVA would be acceptable. Once I am in, I believe it would probably be OK.

My plan would then be, if, in 6 months time it's clear that a DMP will go on for too long, I could look into an IVA at that point, if my employer permits such a thing.


I think my monthly payment will drop from around £1200 (totally unaffordable), to £250 initially with hopefully this rising to £450 within 6 months.
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Lisa Thomas
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by Lisa Thomas » Mon Mar 26, 2018 8:34 am
Perhaps once they get notice of the DMP and realise that you are insolvent, have other creditors (and perhaps no/little assets) they might realise it would not be a good commercial decision to get a CCJ against you.
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kallis3
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by kallis3 » Mon Mar 26, 2018 9:06 am
I was in arrears with all of my loans and had considerable equity in the house but none of my creditors put a CCJ in place.
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MerlinL14
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by MerlinL14 » Mon Mar 26, 2018 1:29 pm
It may just be a case of one department not informing another department, you did say "on the same day" so it may just need a week or 2 for everyone to get on the same page. Once you have started the conversation trail it does tent to block any immediate action of recovery but not necessarily the passage of pre-formatted auto generated letters. Worrying as it is, I don't think it is going to get to the CCJ stage while communication is good.
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