DMP and inheritance

[memyselfandeye]

Hi there legal beagles! I was wondering if anyone could offer some advice?

I currently have a DMP set up due to credit card debt, I currently owe just under £40k :embarassed: and have been paying a small amount each month,. so the debt is unlikely to clear for another 70 years or so (at this rate).

There has just been a family bereavement and I may inherit money. My questions are:
1. Do I legally need to declare this? If theoretically I didn;t declare it, would/could the DMP company find out about it?
2. It the amount inherited was enough to pay off the debt, would I need to pay in full or could I make offers?
3 Finally, my wife seems to think that after 5 years the debts will be wiped off. I don't think they will - who's right?


Many thanks for reading!!

[stevemLS]

Re: DMP and inheritance

1. Don't DMP providers require annual reviews?

3. Are you in Scotland? The limitation period there is 5 years from the date of your last payment

2. You could make offers, anyone can at any time..

[memyselfandeye]

Re: DMP and inheritance

Thanks for the quick reply!!

I'm just coming up to a year, so will presumably be having the review soon. At the moment my circumstances haven't really changed but they might if I receive the inheritance (it's potentially fairly substantial) and I'm sure what I should declare to get the best 'deal'

P.S I'm in England!

1. Don't DMP providers require annual reviews?

3. Are you in Scotland? The limitation period there is 5 years from the date of your last payment

2. You could make offers, anyone can at any time..

[stevemLS]

Re: DMP and inheritance

OK, limitation period is 6 years in England and the passage of that time does not extinguish the debt it just stops the creditor from recovering through the courts.

Problem as I see it is that if you make offers or otherwise misrepresent your true circumstances you not only run the risk of the creditor saying that your misrepresentation negates any agreement they may have made to accept a lower sum in settlement of the debt but there is also the small but real risk of it being a criminal deception. Inheritances are quite difficult to hide as once probate is granted the will becomes a matter of public record. Whether DCAs routinely look at probate records I have no idea.

[memyselfandeye]

Re: DMP and inheritance

OK, limitation period is 6 years in England and the passage of that time does not extinguish the debt it just stops the creditor from recovering through the courts.

Problem as I see it is that if you make offers or otherwise misrepresent your true circumstances you not only run the risk of the creditor saying that your misrepresentation negates any agreement they may have made to accept a lower sum in settlement of the debt but there is also the small but real risk of it being a criminal deception. Inheritances are quite difficult to hide as once probate is granted the will becomes a matter of public record. Whether DCAs routinely look at probate records I have no idea.

Thank you. I'm not planning to break any laws or deceive anyone, just wondering where I stand!

[stevemLS]

Re: DMP and inheritance

Thank you. I'm not planning to break any laws or deceive anyone, just wondering where I stand!

Wasn't for a moment suggesting you were, rather was trying to highlight risks associated with not being honest about your circumstances when trying to get what the law would call a "pecuniary advantage" - namely settling a debt for less than the value of the debt.

[des8]

Re: DMP and inheritance

I found this quote on "http://debtmanagementforyou.com/articles/can-i-save-if-i-am-in-a-debt-management-plan/"
How accurate it is, or how much reliance can be placed on it, I cannot say.

"A windfall is any cash lump sum you receive unexpectedly. It could be in the form of a compensation payment, inheritance or even a lottery win. One of the advantages of using a Debt Management Plan is that if you receive a windfall you are not obliged to pay it into the Plan. As such there is no reason you cannot save it if you wish."

[enaid]

Re: DMP and inheritance

I found this quote on "http://debtmanagementforyou.com/articles/can-i-save-if-i-am-in-a-debt-management-plan/"
How accurate it is, or how much reliance can be placed on it, I cannot say.

"A windfall is any cash lump sum you receive unexpectedly. It could be in the form of a compensation payment, inheritance or even a lottery win. One of the advantages of using a Debt Management Plan is that if you receive a windfall you are not obliged to pay it into the Plan. As such there is no reason you cannot save it if you wish."

I have read that you do not need to declare a windfall when you are in a DMP unlike an IVA which is a formal agreement and probably written in the T&Cs.
You could offer a F&F to your creditors or get the DMP to do it for you but if you have only been in the DMP a short time your creditors may not be willing to accept much less than the full total.

[memyselfandeye]

Re: DMP and inheritance

Thanks again Steve.

[memyselfandeye]

Re: DMP and inheritance

Thank you enaid

[Debt Camel]

Re: DMP and inheritance

You may have signed an agreement with your DMP provider, you might want to check what that says.

The DMP company wouldn't find out. However some of your creditors may, for example if the money is paid into a current account at a bank where you owe money.

You say the inheritance is likely to be substantial. If this is significantly more than 40k and your are then likely to want to get a mortgage, then your best bet will probably be to repay your debts in full. As this will leave your credit file looking as good as is possible with defaults on it.

[memyselfandeye]

Re: DMP and inheritance

Thank you Debt Camel. Great name by the way!