DMP and F&F - is it a case of either or?

[trickyvickytavvy]

Hi all. First post, so be kind please!

 

I've got my head around the F&F stuff, all the caveats, the need for very specific wordings, letters etc. The query I have is how to manage F&Fs while on a DMP.... or, if it's not going to work.

 

My understanding is that CCCS, who manage or DMP for us, do not like the whole F&F as we are suppsoed to treat the creditors equally. But, we owe a flipping mound and, with the help of selling my car and family contributions we could probably pay off three or four of the smaller CC debts, if they accepted even somewhat less than we owe.

 

My issue is - do we tell CCCS of our plan? Do we just go ahead and do it? If the latter then surely we're going to have to 'fess up to CCCS because we'll be asking them to remove creditors from the payment list?

 

Any advice greatly welcome. Cheers.

[sequenci]

Hello there.

 

As you know any offers of F&F settlement to the creditors should be made using a pro-rata formula. The problem lies in the fact that different creditors are likely to be more receptive to a low offer than others - this is especially true if a debt has been sold on to a DCA who may have bought the debt for very little. The way I see it is that any arrangement which involves reducing your overall indebtedness is a good thing. If you get rid of some creditors under a F&F you will be able to make greater monthly pro-rata offers to those creditors which are left.

 

Hope this helps!

 

Seq

[matt5983]

I had this issue many months ago, from what i can remember if you payed off the smaller DCA's via F&F then yes it will be a help to yourselves, trouble is if the bigger debts find out what you have done they can get nasty and refuse all offers and take legal action in which a judge wouldn't see that you have acted fairly.

 

However, this is if you get found out lol.

 

Other option is to do it sequanci's way and make them all an offer via a pro-rata payment, if some accept then great, if some refuse then tough on them and keep them on a DMP