0800 077 6180
Calls from mobiles may be charged
If you are struggling with your DMP get advice and help here
By Jackie Bayfield
#42
I have a DMP but the payments are starting to really get difficult. What will happen to me if I don't finish?
User avatar
By liz
#47
Hi Jackie

If you are struggling with your payments then you should speak to the company helping you. They will be able to go through your income and expenditure with you and make a reduced offer of payment to your creditors. You may also want to consider the other options open to you such as bankruptcy or an IVA.

If you just stop making the payments to your DMP then your creditors will start hounding you again for payment and will probably commence legal action to try and retrieve the money you owe them. You should speak to your DM company or an insolvency practitioner however before you stop making the payments, they will be able to advise you (once they know all of your details) exactly what the likely course of action your creditors will take will be.
User avatar
By Steve Jackson
#55
Hi Jackie,

As a first port of call, you should definitly talk to the Debt Management Company that you are working for. They may be able to accept lower monthly payments from you. However, bear in mind that if you reduce the monthly repayments that you make, it is going to take you even longer to repay your debt. If you really can not afford to make your payments, you may want to consider Bankruptcy or a Debt Relief Order. Very often, Bankruptcy is not as bad as it sounds and will allow you to resolve your debt problem in a year without any monthly payments if you can not afford to make them.
User avatar
By Hayden
#208
Hello Jackie

What happened with your debt management payments? Did you manage to reduce them at all?
By Jackie Bayfield
#209
Hello

My debt management company have allowed me to reduce my payments but i can not see that I am ever going get out of debt at this rate. I do not have a house. Do you think I should go bankrupt then?

Thanks
User avatar
By Hayden
#210
Hi there Jackie

It sounds to me like Bankruptcy or a debt relief order would definitly be a sensible option for you. If you declare yourself bankrupt, you will certainly not be paying more than your current agreed DMP payments and you might not have to pay anything at all if your payments are low. If you do have to make any payments, these would only last for a maximum of 3 years. Then all the rest of your debt would be written off.