DMP vs IVA

[aguise]

I dont think so if anything it shows you are able to pay a regular set amount. The difference with the iva is that you are protected from the creditors ,interest frozen and some of the debt will be written off,whereas in a dmp you can still get creditor hassle and they can decide to change their mind at any time and depending on what you owe can go on for years at least an iva you know will finish in five years .
Hope that helps

Ang

[PeeBee71]

Hi Ang,

Yup - Lots to think about!

More questions..

If, when in a DMP, a creditor decides to go for a CCJ, preumsably they have to weigh up whether they are going to get more out of me through the courts than I am offering. Now, assuming I have been genuine with my figures, and tried to be fair to them, whilst not over stretching myself, a court would not award any substantial increase in monthly payment. Therefore, would it be worth the cost of pursueing a CCJ?

I have no assets to speak of, aside from the car.

Of course, this is all conjecture, a court could decide a massive increase in monthly payments.

Once you have been subjected to a CCJ on a given debt, does this debt then become inadmissable to an IVA?

[tracy.h]

Hi peebee,just a thought if you end up paying dmp,and further down the line you decide to opt for iva,if viable then if creditors do not stop interest on credit,then the money that you are paying will not actually be coming of your total debt,just keeping it at bay, also you will as Andy says not have the protection against creditors that an iva gives you,and at least after 5 years you will be debt free,how long will it take you to pay a dmp.
Obviously it is your decision,but after reading many posts from people paying into a dmp,most wish that they had opted for the iva if they have considerate debt as at least you can see an end to your debts.
Anyway i hope whatever you decide you will find peace of mind,Goodluck let us no how you go on

[PeeBee71]

Hi Tracy,

Yes, I had thought this could be a problem. As you say, if creditors do not freeze the interest, then the debt isn't being cleared.

However, I guess I will not know whether they will freeze the interest on a DMP until I enter a DMP - But of a catch 22 really.

Of course, as far as I understand it, there is nothing to stop me going for an IVA if creditors refuse to freeze it.


Cheers

Pete

[aguise]

HI Pee Bee
just wrote a big long post and pressed the wrong button[(#)] lost it.
I agree with Tracey a dmp could go on and if interest not frozen then, nothing goes down that much, a friend of mine was in a dmp and paid for two years and had hardly touched on what they owe , they are now n an iva.
As for the increase once csa finishes it would only be for the final year and just gives them that bit more back. We do overtime and each month I ring and pay the 50% over I'm quite happy to do this as if we had any probs hope the creditors would look more kindly as we made more effort but even if not we have the benefit of the extra bit of money each month instead of paying it in interest to creditors.
Hope I dont give you brain ach [:x)]

Ang

[aguise]

I meant brain ache. One day I'll learn to use a keyboard too
Ang

[PeeBee71]

Ang,

To be honest it is nice to have the sort of brain ache thinking about solutions, rather than having brain ache thinking about the problem

I feel so much better for having started to take some positive action, and being pro-active rather than reactive. Obviously the support here helps immensly.
Of course, nothing is even near to being sorted yet, but at least I can see some light flickering away there somewhere.

I do feel however that I ought to give someting back. So if anyone has any questions about computers, games consoles, flat screen tellys or Subaru Imprezas, then just yell

[MelanieGiles]

I do not understand the basis of fees you were quoted by the CCCS under an IVA. Are they saying that they will supervise an IVA for £360 per year? I would be very concerned about the quality of the service you would receive for such a low payment. Which IP were they suggesting to refer you to?

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

[PeeBee71]

Melanie,

Basically, yes. The fees for an IVA were and initial £2500, (included in the IVA payments) plus 10% per month - Which, if you assume £300 per month throughout the life of the IVA equates to £360 a year.

I do no know the name of the IVA comapny, although it is owned by the CCCS apparantly - I am sure I can find out the name.

Pete

[tracy.h]

A while ago when i cotacted cccs for advise they suggested they would contact Grant Thornton,dont no if this is soley who they use.

[PeeBee71]

Right, it loks like, fingers crossed, the Smile account is all going through ok. Have a messge that they are offering me the account and they just have some final checks to go through, but not to worry as they are basically formalities.

Once I have this account set up I'll change my details with work and get my salary paid in there.

I have also had contact from Payplan, but not spoken to them yet. Anybody have any opinions on them? I see they are financed by the financial sector, does this bias them in any particular direction with regards to DMP/IVA advice?

[dcl]

Hi peebee
I've been with payplan for 3 years for my iva. when the iva proposal was being prepared they were great and I paid nothing up front. My proposal was accepted first time and was all up and running 9 weeks after initial contact. I had a problem this year concerning fees but with a few phonecalls and emails and the advice from this forum its all been sorted now. Hope this helps.

[MelanieGiles]

Another great success story for the forum - providing advice and support where this cannot be found from existing providers.

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

[PeeBee71]

More questions....

Doing some quick maths.

Hypothetically under an IVA, I pay £300 per month for 60 months, making a total figure of £18,000.

Take off 35% if I go with someone like Melanie rather than the CCCS or such like, which gives £11,700 for creditors - A return of approx 38p in the pound.

Does this seem like a figure that is likely to be accepted by creditors in an IVA? Or would I need to be pushing toward 40p in the pound and beyond?

I owe:
Barclays (32% of total debt)
Halifax (29%)
AmEx (16%)
Tesco (12%)
Monument (barclays subsidary) (11%)

Of course I don't expect anyone to come with a definitive "yes that will be accepted" but just if I am being realistic.

[aguise]

Hi Pee Bee
I'm sure melanie will answer but I think that looks ok, no northern rock or hsbc who have the higher dividend expectations.As for which company I think you have the right idea already, Melanies reviews are outstanding.

Ang