Hello everyone. Not sure what to do in my current situation. I have been in a DMP plan now for approx 4-5 years. The company involved take a % of my payment. Up until now I have been happy with the arrangement as they have taken a lot of pressure etc away from myself & family. I now realise this could go on for another 15-20 before the debts are clear. I have now contacted a recomended firm off the site who have told me I should be in a position to go for IVA. I am awaiing an applicatio pack from them. In the meantime would it save a lot of hassle to carry on paying my DMP or would it be a waste of money etc. Suspect it is probably best to keep paying but would like some advice. Thanks. Also due to being in the DMP for so long I have very little account info etc. All i have is the DMP statements each month.
Hi Mark,
Paying back your debts , through whatever method is never a waste of money.
One of the forum experts will advise you soon I'm sure.
Personally , I would continue to service your DMP until you speak to an IP.
Hope that's useful.
ATB
Thanks for the reply. Perhaps I came across wrong with the waste of money statement. I did not mean it in that sense. Probably should have stated that may need the case for an up front payment for the IVA if that is the case.
Not got to that stage yet. Still waiting on info pack etc. They have taken figures etc but require all the paperwork sending back asap. Will probably make this month's payment to keep the phone calls to a minimum.
Mark,
If you are able to , phone the firm and ask the question.
As you say , it would give you the chance to make your first IVA payment.
I am with Melanie Giles , and I have to say that Melanie and her team provide a sterling service.
Good luck
hi guys i have to disagree if youve decided to go for an iva then stop paying your debts .
youll need to be saving as much as you can for a contingency fund.
this fund is crucial to your iva working in the first few months.
mark
please take the advice of a pro before doing anything though.
If you are currently in a DMP and will remain there should your IVA be rejected I would suggest that you continue rather than have to set the whole thing up again. If however you will petition for bankruptcy in the event an IVA is not successful there is little point in paying the DMP as the funds can be used for contingency in an IVA or for the bankruptcy costs.
It is worth asking your chosen IP as they may have different ideas or procedures.
I have a feeling that we have spoken today, if you are who I think you are, and if so then I hopefully have answered your question in person. If not, then I will look a bit of an idiot, but I would agree with Michael broadly.
Regards.
Cert DR
23+ years in debt advice
I do not post for anyone other than myself
We would never recommend that someone stopped their IVA payments whilst they were in the process of putting forward an IVA.
I am also curious as to what motivated you to enter into a DMP in the first place, rather than looking at an IVA which would have been almost over by this stage. Have you suffered from a change in circumstances over the last couple of years?
I was actually told to stop paying the DMP whilst we applied for an IVA, and when we spoke to the DMP company they were fine with it.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Hi
I usually advise people to stop paying creditors when arranging an IVA, however in this case I think that it would be sensible to carry on with your DMP payments.
I think ultimately you should take advice from your IVA company
Regards
I think that the best advice is to give the client the option of not paying anything or paying pro-rata payments - but either way it has little impact on the evenutal outcome at the creditors meeting.
The company that set up my IVA were part of the same group that my DMP was through and after I called them back for some information on the IVA process they very kindly informed my DMP company that I no longer needed them without informing me!! I carried on making payments to my DMP company for three whole months before I realised why the creditor phone calls had started up again.
