Payplan DMP length

[Endoftheroad]

I have been in a DMP with Payplan for the last 10 years, the end of the DMP states 2092, which I know I definitely will not be here. How can they still take money of me for 10 years, I thought the plans only lasted 5 years

[Debt Camel]

Re: Payplan DMP length

I think you are confusing a DMP with an IVA. DMPs have no time limit - although very long ones are not a good idea! IVAs are usually for 5 years.

Have you asked Payplan what your alternatives to this DMP are? It sounds as though you are making very low payments if it is going to last that long. In that case an IVA may not be suitable for you.

If you could answer the following questions, we could give some idea of what your best options might be:

- how much do you currently owe?
- how much are you repaying each month?
- are your renting or buying? If buying, how much equity is there in your property?
- do you expect your finances to change much in the next few years?

[Endoftheroad]

Re: Payplan DMP length

I have been advised to go bankrupt as I owed around 55000, but I would lose my family home. they are all credit card debts, not secured on my home, in fact I didn't have the house when I went into the dmp I am paying a token payment of £1, and my finances will only go down, as I am due to retire. the house is jointly owned and I cannot use any equity in it.

[Debt Camel]

Re: Payplan DMP length

If you can only make token payments, then an IVA is not an option.

How did you buy a house when you were in a DMP? Did you have a deposit? How much equity is there in the house now?

When you retire, will you get a pension apart from the state pension?

[Endoftheroad]

Re: Payplan DMP length

the house i have lived in all my life, was left to me and my sibling when my parent passed away

No I won't receive a pension.

[Debt Camel]

Re: Payplan DMP length

This is a difficult situation. It is not Payplan's fault that you have too much equity to make either bankruptcy or an IVA possible (and actually you couldn't afford the IVA repayments either).

A token payment DMP for a long while is not an attractive option, especially if you have a house with equity as the creditors could go for CCJs / charge over the house / order for sale. That isn't likely but it is possible

But your only other option is to find a way to settle your debts. Are your sibling's finances in better shape than yours? If they are, I wonder if your sibling could provide the money to make full and final settlement offers to your debts? After such a long DMP you may well be able to get away with about 20%. This money wouldn't have to be a gift to you, it could take the form of an interest free loan to you to be repaid when the house is sold or on your death. Or you could arrange to change the ownership of the house so sibling owned say 60% and you owned 40% in exchange for the cash.

[Endoftheroad]

Re: Payplan DMP length

My OH finances are in the same state as mine, the house needs a new roof, and we have a mortgage. Will carry on until I can finance a full and final settlement. It is a long and lonely road, all caused by greedy bankers, and me borrowing when they offered.