DMP Advice Re 'All Monies Clause'

A question about : DMP Advice Re 'All Monies Clause'

Hello,

I am new to this site and have never before posted on a forum so forgive me if I have posted this thread in the wrong place etc.

Myself and my wife have recently spoken to Step Change in relation to the potential of setting up a DMP.

We have unsecured debt (personal loans, credit cards, overdrafts & catalogue) of circa Ј100,000.00.

Everyone I have spoken to including the creditors themselves are advising that we go down the DMP route.

However, our mortgage is with Nat West and we have an overdraft, credit card and two personal loans with them also.

My concern is that if we opt for a DMP and Nat West are forced to accept reduced payments or reduced interest on the unsecured lending is there anything they can do in relation to our property.

I have read a lot of stories in relation to 'all monies clauses'.

Any advice would be much appreciated?

Thank You

Best answers:

• Hi,
  I think as long as the mortgage is up to date, theirs little they can do, the unsecured borrowing is a separate issue to your mortgage.
  Are you really able to clear 100K of debt via a DMP ?
• There isn't anything they could do regarding the main mortgage. What they could possibly do is take you to court for the unsecured debt and go for a charging order. In theory I believe they could then technically attempt to force a sale but they would have to satisfy the main charge first.
  Charging orders are 10 a penny to be honest and I have never heard of any forced sales and I've been on here for 7 years now and seen thousands of posts in debt free wannabe. I think a judge would take a dim view on it if you were up to date with your mortgage.
  It's not something I would worry about to be honest. I would take advice from Stepchange on what they think the best course of action is.
  Unless you have a large income I think trying to clear 100k of debt via a dmp is perhaps unrealistic. Obviously you may have your reasons/been advised differently but on the face of it I would be looking at whether an IVA or bankrutpcy would work better for you.
  df
• You can't force a creditor to accept any offers of reduced payments although they are supposed to listen fairly to your request. Eventually most companies will accept the reduced offer. Frankly if they don't then they can take you to court which will cost them time and money and a judge will decide what rate you need to pay them back. My understanding is that, provided your budget is reasonable then an order would be made in line with what you had originally offered.
  df
• Thank you for all your responses.
  The advice is much appreciated.
  I come out with Ј3,800.00 net after tax each month and my wife comes out with Ј1,000.00 net after tax each month.
  So yes Step Change don't see an issue with clearing the debt via a DMP.
  Bankruptcy isn't an option as we will lose our house and we have 2 children plus I don't want to walk away from the debt I want to pay it and confront it head on.
• IVA defintely seems worth looking at, how long will it take to clear 100 grand?
• Step Change have said it would take 6 years 11 months ...
• When we started on our DMP, we banked with Santander, had an overdraft, credit card, loan and the mortgage. We have moved our current account to a different bank and the credit card, loan and OD are all included on our DMP, we have never missed our mortgage and have had no problems. Recently I looked into fixing a new rate on the mortgage and this too would be an option.
  I hope this helps.
  Ellie
• A dmp certainly looks good on paper for you, from the info you've given. Bear in mind that your debt free date could go up or down, depending on whether you get extra money to through at the debt, whether creditors stop interest etc etc. After a few years of the dmp you may find your creditors would be happy to accept settlement figures and not to chase or sell on the rest of the debt.
  Hopefully the 6 years will fly past for you and we'll see you on here declaring yourself debt free.
  df