can i have a IVA if i have a DMP already ?

[uksurfers]

Hi can i have a IVA if i have a DMP already ?

[aguise]

Hi and welcome
A lot of people move from a dmp to an iva but the main point is is an iva the right thing for you. If you dont mind, can post how much is still owed, how many creditors and who they are, your income, and the amount left disposable income after paying all your living costs and if you rent or own property then everyone will be able to advise.

Ang

[MelanieGiles]

Hi uksurfers

Yes it is entirely possible to move from a DMP to an IVA - the advantages for you being that interst is legally frozen and you payments are for a set period - usually five years.

Can I ask why you chose the DMP route in the first place?

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[iva_squirrel]

Hi uksurfers,

Yes, as aguise and melanie said you can definitely move to an IVA.
But is an IVA the right solution for you?
Could you post some more information about your debt? your creditors and the amount?

All the best,
Regards,
Michelle P.

[iva experts]

Hello Uksurfers and Welcome to the Forum,

Debt Management Plans can be a great option for people who find themselves in debt of up to £10,000-12,000 and/or have a good amount of disposable income to pay this amount off quickly.

However if your debt is over this amount being in a DMP can take longer and you may find there is no light at the end of the tunnel.

A good way to calculate how long your debt will take to pay off in a DMP is shown as follows:

Total amount of debt / by your monthly disposable income, this will give you the amount in months then you divide this figure by 12 to see how many years it will take.

Usually if it takes 5 years plus then an IVA may be the better option for you.

Best Regards. IVA Experts

[Oliver]

I think that a good rule of thumb is to compare the amount of time it will take you to pay the debt off in full in a DMP. If this is over the "normal" IVA period of 5 years you should stronly consider an IVA as an option.

Best Regards
Oliver

Thomas Charles and Co Ltd.
Experts in personal debt solutions.
Read customer feedback at: www.thomascharles.com/about_us.asp

[uksurfers]

Hi melanie, i have been on my DMP for 3 years now, when i started it i did'nt know and was'nt advided about iva's and now i think it maybe have been a better option for me.

Yes it is entirely possible to move from a DMP to an IVA - the advantages for you being that interst is legally frozen and you payments are for a set period - usually five years.

Can I ask why you chose the DMP route in the first place?

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk
[/quote]

[Oliver]

I think that if there is little chance of you paying your debts off within a period of 5 years through your DMP then you should stongly consider proposing an IVA.

Best Regards
Oliver

Thomas Charles and Co Ltd.
Experts in personal debt solutions.
Read customer feedback at: www.thomascharles.com/about_us.asp

[MelanieGiles]

That is a shame that you did not consider all options available to you at the time - perhaps you did not know that the IVA procedure actually existed.

If you are likely to conclude your DMP within the next five years, then you are better off sticking with that. Are you getting regular statements from your creditors where you can see your balances reducing on a monthly basis - or is your DMP company giving your regular updates?

If it is going to take longer than five years to repay your debts, then the advantages of an IVA may be more attractive to you.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[uksurfers]

Hi again, No unfortunately I didn't know about IVA's until recently. I still owe £31000 on my DMP and I am currently paying £284 a month. Here's a list of my creditors as I am not sure if I would qualify for an IVA.

Barclays Loan
Barclays Visa Credit card
Barclays MasterCard Credit card
Lloyds TSB visa credit card
EGG visa credit card

I also have a shared mortgage with my parents and don’t want my debt to effect them i.e. (any equity from the house)or is possible to have an IVA which doesn't effect the mortgage ?

Any help or advice would be much appreciated

Thank you to you all

[MelanieGiles]

That will take over 9 years to repay under a DMP, so you may be better off with an IVA but your creditors will ultimately be paid less. As you have an interest in the property, your creditors will expect to see some of that raising. Can I ask how much the property is worth, the value of the outstanding mortgage and your share of the resultant equity? If you do not wish to involve the equity, then I would stick with the DMP.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[uksurfers]

hi Melanie, I think its worth around 90k and we have around 10k to left to pay, i have a third.

[Adam Davies]

Hi uksurfers
if I read your situation correctly you have a one third share in approx 80k of equity[about 27k].As your debts are 31k I doubt if an IVA will be suitable as you are only just insolvent.
If you entered into an IVA you will certainly have to surrender some equity and will likely repay your whole debt.Have you thought of a remortgage to clear your debts ?
Regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[uksurfers]

I did look into it before i Decided to start a DMP but that wouldnt be fare on my parents as they too would be paying on a higher monthly payment than the original morgage due to the house price increase.

[uksurfers]

I was talking to a friend of mine today and he said he knows someone at work that started an IVA or something like one that didnt effect any equity in property, has he got it wrong or is there somthing like this ?.