Old Debts and Debt Management Trap

[LastViking]

I am new to this forum and hope that someone could guide me.

 

I got into financial difficulties back in 2001 with credit cards and loans. Between my wife and I we had debts of £ 76k. In order to resolve matters we went into a DMA with Pay-plan and from 2001 until 2008 managed to reduce the debts to around £ 46k. We have never had any CCJ's against us and made no use of the cards since 2001. I have not had any credit since that time.

 

In 2008 my wife and I separated and divorced in 2009. As we had no assets the Divorce Consent Order was that I would continue to repay debts at £ 638 per month and my ex-wife at £ 50 per month. I did this until falling ill with Stage 4 Advanced Bowel Cancer in early 2010 and I have been off work since June 2010.

 

I stopped paying into the DMA in November 2010. I was contemplating bankruptcy but had difficulty getting the deposit together. In the process of preparing the Bankruptcy forms however, I found that at least two of the creditors no longer had any record of the debt. I am now only being actively chased by 4 of the original 8 creditors. Two of those creditors were joint with my ex-wife and she has continued to make small repayments throughout.

 

I am now 60 and I do have a small pension fund which could release about a £ 20k lump sum. I am conscious that until I draw on the pension, the fund will not be taken into account in a bankruptcy. So I am reluctant to call on the money unless I really have to. I am contemplating moving the fund offshore to protect it from the UK creditors.

 

My questions now are:-

 

1) Because I entered in the DMA I understand that the Statute of Limitation does not apply to the four creditors not pursuing the debts. Therefore they could at any time suddenly demand payment. Can I extract myself from the DMA to start the 6 year clock running and just deal with the four creditors pursuing me?

 

2) Alternatively can I negotiate outside of the DMA with the four Creditors who are chasing to try to reach a Full and Final Settlement with them and get them off my back using the £ 20k? Their share of the debts amounts to about £ 17k, all old credit card debts.

 

3) I have had a couple of Statutory Demands while I was ill and have done nothing about them. To be honest if they want to make me bankrupt at least it saves me £ 700. Should I be contesting the SDs?

 

4) Before my illness I was in a well paid job but I don't really want to return to it with the stress involved. I have now remarried and my new wife has no debts and is not involved in any of the arrangements. If she works, will her income have to be taken into account in the DMA even though she is not party to it? I also now have a 12 year old stepson that we need to support.

 

5) All of the debts have been passed to DCAs. Sometimes, it appears, more than once as I get letters from people I have never heard of. I am not at all sure if any of these transfers have been correctly completed. Is it worth using the CCA route to try to remove some of the debts or has entering into the DMA and paying off such a large portion of the debt already prevented me now challenging any of them?

 

Given my age and health I am really reluctant to have to go back to a highly stressful job, just to pay back credit card debts which arose mainly though exorbitant interest rates and charges.

 

Any help and advice you might be able to give, would be truly appreciated.

[padja]

first as they are credit card debts was there any PPI on them if so I would be claiming that back, DCA are not as powerful as they like you to believe, others have more experience in this as I'm not too sure about way forward as you had a DMA.

[LastViking]

Hi Padja, thanks for the quick reply. No PPI, I never fell into the trap of taking it out. There might have been some excessive Credit Card charges but the accounts are so old now, it would be difficult proving them.