I am currently on a dmp and have been so for the last 18months and up to yet all interest and charges have been stopped and I never hear from them. I believe that a legalised dmp is in the pipeline and part of this is to make the creditors stop interest and any further course of action if you stick to the repayments although i am not sure of all the details. How long will it take you to pay your dmp?
Hi hopefull, it would take me 100 years at the current rate! Prior to my change in circumstances it would have taken 15, which is a bit more realistic. I am hoping that through delivering training and/or putting some of my training packages into print I will be able to create additional income that could be put into developing a more realistic dmp proposal in future.
Having something in place to prevent creditors taking further action would be wonderful, especially for people like myself whose income is unstable due to being on a yearly contracts (or even less, which I guess is happening a lot in the present climate) and therefore cannot enter into an IVA.
Regarding the regulation of DMPS, for anyone else that is interested in this subject I have found the following link to the proposals raised during the consultation:-
As mentioned, I am hopeful that there will be a change in DMPs to ensure that creditors agree not to take any enforcement action during the duration of the plan. I do think that at the moment there is a gap in provision for those whose income is too insecure to commit to an IVA but would benefit from a plan that allows them to pay a monthly affordable amount and gives them protection from further action. This would also provide a viable option for those who have had to fail their IVA due to significant changes in circumstances (which as we know is something that is happening on a daily basis in the current climate).
It can only be a good thing if this does come to fruition.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
hunnybunny wrote:
Hi there, I am currently on a DMP with CCCS and am paying token payments of £5 to each of my creditors (totalling £50 a month) having suffered a breakdown in March last year following two miscarriages and giving up my second job as a result (the work that I do means that I have to be emotionally stable myself in order to work ethically). I can cope with my main job and do some teaching work on a consultancy basis but can't really foresee me feeling able to take on a permanent second job again. I owe £60,000 in unsecured debt and have about £25,000 equity in my property, although recognise that it would be unlikely that I could release any of this at present.
I don't want to lose my house so bankruptcy isn't really an option but doubt I earn enough secured income to propose an IVA. Have any of the experts on here worked with anyone in my position? If so, what ways forward might be possible for me?
Many thanks for your time
Hi hunnbunny,
If you would like the CCCS to talk over your options please feel free to call our client support department again. We would only look at a £5 per creditor dmp if there is going to be a change in your situation i.e. if you are looking to return to work/ increase your income again. If not you would need to look into other options as Melanie has mentioned a lump sum IVA or full and final settlements. If selling the house is not something that you want to do at the moment then the main thing is maximising your income as much as possible to reduce this term down. Each time there is a change to your situation please do contact us again and then we can look at it step by step.
Sarah
CCCS is a registered charity. We take great pride in offering first class help and advice, but we only offer this where we have been able to fully explore and understand your circumstances with you. We want to help you understand these choices and their possible implications but not make them for you.
Thanks for your post. I have found CCCS to be very supportive and have kept them informed of all changes in circumstances. As mentioned in my other posts, I am looking at ways of increasing my income, it is just that it is a very difficult climate to do that in! I am not normally a negative person and remain confident, however, that my situation will change and am working hard to make this happen. To those ends - if anyone knows anything about getting a self-help book published, please let me know!
Interestingly, the book that I am writing is very much centred around the importance of finding balance in life. To me that's what this situation is about too. It is about finding a balance between the well-being of myself and my family and repaying what I owe. Hence my reluctance to sell the house at this stage - I would be causing disruption and upset to us all and in the end once all the costs have been paid (and I would probably have to accept a low offer in the current market) there wouldn't actually be that much left to offer creditors. If they then refused that as a lump sum I would be in an even worse state than I am now.
Sorry if I have waffled a bit. Thanks again to everyone for your responses and support.
Hi Hunnybunny.
I have been following the post and assume that your mortgage is already interest only given that the payments are £450 per month. If this is not the case it may be an option to free up surplus income and make an IVA viable.
Regardless you are working on a consultancy basis and as such you may in fact be operating on a self employed basis. If so you should be putting aside money to meet your future tax liabilities otherwise you could face problems in that regard.
If you believe that your income will increase you could propose an IVA based on projected future earnings and creditors may also receive equity in the future. It may be worth taking an opinion from another IP firm as an IVA may be a viable option.
My mortgage is a tracker, the reason it is so low at present is because it is reviewed annually and the changes in base rate applied at that point and on the last review I had overpaid last year so had my repayments cut this year to balance it out.
The consultancy element of my work is on a self employed basis and I am careful to put some aside for tax each time I receive any payment. I would like to look into an IVA but would find it difficult to make any projections about future income because it is so unpredictable, in addition I won't find out until March whether the funding is in place for my main PAYE job to continue from April. This will be the position I remain in each year due to nature of the work... is there any way that this can be considered within in an IVA?
If the funding is renewed in March, I will certainly be looking into having a discussion around the viability of an IVA. Would it be possible to start an IVA with less than £100 per month disposable income on the understanding that I continue to promote my self-employed work to increase income and that I release what equity I can if this becomes an option?
I take it your mortgage is with the Woolwich/Barclays and if so they do not consent to interest only conversion if the reason is to reduce unsecured debt so that option is effectively out.
However an IVA may still be a viable option even with the uncertainty of your PAYE position as many people have contracts of employment that they hope are renewed. I would be inclined to not propose any IVA until next year's position was clear but the IVA can be adjusted during the term to reflect changes in circumstances.
Any IVA proposed would incorporate any monies owed to HMRC and also include the liability for the year in which the IVA commenced. You could start an IVA with a surplus of less than £100 for the first year provided that some form of projections could be assessed for subsequent years. It is not unusual for businesses to break even or worse in the early years but subsequently flourish and if you believe that 2010/2011 or 2011/2012 will show improved profits there is nothing to stop an IVA being put in place. Many IP firms and charities do not understand self employed IVAs but many other IP firms are happy to look at your circumstances and produce an IVA suitable to you and your creditors. It is certainly worth taking another opinion.
stirling wrote:
Sarah, Could you clarify for me if you are from the CCCS or the
CCCS(va) since I believe they are two separate entities?
Hi Stirling, I’m a counsellor for the CCCS
CCCS is a registered charity. We take great pride in offering first class help and advice, but we only offer this where we have been able to fully explore and understand your circumstances with you. We want to help you understand these choices and their possible implications but not make them for you.
