DMP

[gibbo]

I can't get an IVA cos I have equity in my house. so can anyone help with a good company for a debt management plan.

Also on a DMP this doesn't stop creditors taking you to court does it. I have a creditor who has applied for a charging order on my property.

[carlmcmullen]

Sadly DMP's do not protect you from creditors taking legal action, and normally you are correct if your equity out weighs your debts then an IVA is not normally suitable either.

How much equity and debt do you have at the moment can you give a bit more detail.

Who is going for a charging order and how much ?

[gibbo]

I have debts of £60K and my equity is about 80k
MBNA sold off my debt to Link Financial who because I have missed monthly payments because I was applying for an IVA thay have now applied for a charging order.My debt was £8500 which has now risen to £9600

[carlmcmullen]

With that level of debt you really need to consider if a DMP would be suitable as other creditors may also attempt to charge debts.

Have you considered selling your property and clearing your debts which would leave you probablly enough for a deposit another property or you could consider moving into rented accomodation.

You say Link are charging the debt because you have attempted an IVA already, how far did you get ? what was your disposable income ?

[chris.g]

The problem with a charging order is, if I'm not mistaken, the creditor can request a payment towards the debt/charge even though they should get the cash when the property is sold. If you don't make the payment they can seek a force of sale, a court order to force the sale of the property, therefore releasing the equity so they get their cash. We had a charge applied to our house and had a demand for the payment in full, it was for a Mint loan handled by Spratt & Endicott.
As it is changing a non-secure debt into a secured one, you risk your house if you do not maintain the payments on it. 'Over a barrel' springs to mind.....

[Adam Davies]

Hi
You need to make sure that any charging order is paid at the agreed amount each month.
Regards

[gibbo]

The problem all started 4 months ago basically I had already agreed payments to my creditors then I was advised an IVA would be suitable so I began this process in November so of course I didn't make any payments as advised now Iget told that because of my equity I can't get an IVA. They should have told me this from day one and I could have carried on with my payments. I feel really let down with the IVA company that I used especially as I have paid £370 for the last 4 months

[MelanieGiles]

Who was it who suggested that an IVA would be a suitable option for you? And why not look at the possibility of releasing equity from your property by re-mortgaging, paying a chunk of the creditors and then contining to service lower debts. If you looked at an interest only option this might free up sufficient money to avoid a DMP altogether, and as the other posters have said, you could rapidly lose your equity in any case if creditors start pursuing charging orders.

[carlmcmullen]

And was the £370 x 4 months refunded ?

[gibbo]

I forgot to mention I have a shared ownership propertyso I can't remortgage. The company that I went through now want me to do DMP with them so I doubt I'll get anything back

[MelanieGiles]

So selling the property now to clear the debts in full vs a long-term DMP with threats that creditors will simply secure against your property in any case? A decision only you can take really.

[Jo Rolland]

I would write to the company you paid this money to and ask for an immediate refund.

If you would like me to work out a DMP you can deal with yourself, let me know.