3 IVProviders 3 different solutions

[johnh]

I have contacted 3 IVProviders - all very helpful- who have come up with 3 different solutions. One is an IVA; one is a DMP and a third is an IVA with a lump sum payment in 1 year. I am really confused bu know I need to act fast before we start falling

[aguise]

Hi John H and welcome to the forum. I would maybe get one more opinion. Melanie will give you all your options and advise.
The main thing is you are addressing the problem. So all the best from me and kee us posted.

Ang

[plasticdaft]

JohnH,is the lump sum in year one from an equity release or some sort of windfall??
Dont rush into things,I know time is tight but there is no need to panic into something you are tied to for 5 years.
Melanie if asked will give good advice on all solutions.

[pbeck]

You take your pick of the 3 people who you have contacted.

IVA providers have a balancing act to consider, they know their clients will probably have contacted several companies. If they come in saying you only need to offer £X per month when another provider is saying you need to offer £100 less per month, then they risk losing that client as the client will choose the cheaper option, however when it comes to the creditors' meeting the creditors may actually ask the client to pay say £150 per month more which means the cheapest "solution" no longer is.

I say to my clients you need to offer the best deal that you can that is still manageable for you to run the course of the IVA, then clients will accept it. That way there are fewer surprise increases demanded at the creditors' meeting.

If you are thinking about doing a DMP, then you need to see who long it will take you to clear your debts in full, longer than 8 years is probably unreasonable, between 6-8 years it's IVA or DMP, under 6 years then the creditors would probably prefer you to do a DMP even though you'd end up paying more than under an IVA. One creditor I know of recently rejected one of my IVA proposals on the grounds that the debtor could repay their debts in full with a DMP in under 10 years.

[size5]

I agree.

Life is all about choices and it is actually quite rare that I would come across a situation where there is one choice and one choice only. Some people choose an IVA over bankruptcy, for example, when bankruptcy would be the easier and cheaper alternative. Financially, this makes no real sense, but it is down to personal preference at the end of the day and if a client wishes to act in the way that they consider to be the most responsible, then who I am to argue?.

As long as the options and choices have been explained properly then you are free to make you own decision.

I advise on a "what would I do if I were in this position" basis, and as such I would give a recommendation but only after making people aware of any alternative choices that they may have.

Regards.

[Adam Davies]

Hi
I agree,an advisor can only recommend a solution but it may be that another advisor will recommend a different solution.Some situations are borderline regarding DMP/IVA or bankruptcy.It is good that you have contacted three providers,no harm in trying a few more.
You are basically making a life changing decision,so don't rush into one
Regards

[abc]

With respect a good IP would give you the pros and cons of each financial solution, so I would recommend speaking to another. Try a smaller firm where you get the advice from the horses mouth - ie from the IP rather than an "advisor" who may not be qualified.

[Adam Davies]

Hi
Very good advice
Regards

[johnh]

Firstly let me say how delighted I am to get so many helpful responses. The "lump sum" option is based on one year's payments followed by a lump sum from the maturing of an endowment which was to pay off the interest part of my mortgage (part repayment;part interest only).
I will certainly take the advise to hold fire until I am sure of the best solution. Meanwhile, as a newcomer, who is Melanie?

[Andrew Graveson]

Melanie Giles, an IP who gives a lot of her time to this site.

She may be taking a rare night off but I bet she pops up with a response later this evening!

[MelanieGiles]

I've not been around all day - very stressful day at the office! You have already received good advice, and if I were in your shoes I would certainly seek another opinion to see what other solutions are out there. The key things to bear in mind are:-

1 Is an IVA really important to me? Have I fully considered the merits of other solutions such as bankruptcy proceedings or debt management.

2 Can I afford the payments being suggested, and have I provided for all known expenditure and contingencies. Try and find your "gut level" feel for the contribution level you feel that you can afford, and do not be tempted to say that you can afford more - as the reality is you won't.

3 Unless your suggested offer of a 1 year full and final solution is based upon third party funding, and you have no disposable income to offer ongoing payments, this is unlikely to be accepted. The suggestion that you could pay one years worth of contributions and then realise an endowment policy will not work. If you can afford payments for one year, you can afford them for five - in the eyes of your creditors.

As you seem so uncertain which way to turn, seek more advice and opinions. A pattern will soon emerge, and you will know when you find an IP you feel comfortable with. Good luck in your search.