Hi and welcome to the forum. Why not take a look at www.iva.com talk to a couple of companies and take it from there. They can give you case specific advice on all debt solutions and this may help you make that final decision? Any questions just ask we'll try and answer. x
IVA final payment left the bank on the 26th January 2013...looking forward to a debt free future.
PJG Recovery have a free online advice channel at www.debtadvicetv.com. If you are ready to ask us for specific advice or help, then get in touch at www.pjgrecovery.com/contact-us.asp . I look forward to speaking to you.
An insolvency practitioner will be able to correctly assess your current financial situation Robert, and make suggestions as to what solutions are available to you. Usually if you can do an IVA you can do a DMP, and vice versa - so the ultimate decision has to be yours, but best made when you know all about the advantgages, disadvantages and implications of each option.
I know of someone that's in a DMP and unless she gets to over 100 years old it wont get paid off. but she wont go for a iva.
at the end of the day only you can make your mind up.
but do talk with a few company's before you do
IVA now over with and it was worth it.
now starting my life again,
Have you been advised whether the DMP will leave you debt free within 5 years and whether your creditors will cancel interest during the period of the programme?
If that is not the case an IVA will probably be better as it will freeze interest and at the end of 5 years you will be debt free.
Have a chat with another provider and see what they say.
Regards, David Mond, Insolvency Practitioner for over 46 years. Personal Insolvency Practitioner of the year 2012, Personal Insolvency Practitioner of the year finalist 2013 & 2014 awarded by Insolvency & Rescue Magazine and 2015 finalist for Personal Insolvency Firm of the Year.
I can only add what made my decision now nearly 7 years ago.
Bankruptcy - Personally just felt was not right, I didn't feel bankrupt enough and sort of felt that was the ultimate failure to pay back my debts.
IVA - Admits to bankrupt, pays back what I can afford. Not an easy choice, but it is one that in my circumstances felt the honest way to go as I wanted to pay back creditor as much as I could.
DMP - Read up, no protection, potential never ending nothing more to say on that one. Dismissed immediately.
Last edited by herbekj on Wed Apr 03, 2013 8:08 pm, edited 1 time in total.
Last Payment - November 2011 - Completion Certificate received 2 weeks after last payment, Removed from Insolvency Register within 4 weeks after last payment.
David I think that your advice is slightly mis leading! If you read alot of posts on here IVAs are now running for longer than 5 years! IVAs in some companies are still open after 60 or 72 months!! And some are still paying into them due to never ending extensions!! I feel that honesty about both options is the best policy!
My understanding is the term of the majority of IVA's continues to be five years, however specific circumstances may mean extnsions to six or seven years in some cases. Not sure Nutkins why you feel David is not being honest .... David is simply putting his own opinion and understanding as an expert in this field.
Last edited by luluj on Wed Apr 03, 2013 10:13 pm, edited 1 time in total.
Sharing from experiences of dealing with debt
There is a solution for everyone .... Just need to stay positive !
I have just said that to say cart Blanche you will be debt free in 5 years is slightly misleading! Unless this is guaranteed then this is not how it should be sold and exactly why the adverts do not state that anymore! My opinion only!! It also depends if you own property the amount of equity etc etc!!
Our IVA got extended to 6 years, not because of the equity clause (we rent) but because one creditor out of 11 wanted the extension, to increase the dividend. The others were all happy with 5 years. Still really unhappy about it, being a young family with quite low earnings that want to move on as soon as possible and get out of the renting cycle, and extend our family of three, but hey. Not sure which creditor it was as they were represented by Grant Thornton so it never said in my chairmans report. Putting our lives on hold for 5 years seemed long enough, so when they told me it would be 6 years I was very disappointed. Bankruptcy would have been the easier option for us and the creditors would have got nothing back at all, but morally it didn't feel right. We won't be having any of our debts written off either, as unless circumstances change drastically then we will be paying in 100% of what we owe, plus all the fees on top of that. So we didn't get to see the sweeter side of the IVA unfortunately, the only plus for me is that the interest is frozen, but when you consider the amount we'll be paying in fees over the course of the IVA we could have been better off in a DMP and would definitely have been better off in bankruptcy. An IVA was 'sold' to me on the basis that after 5 years we would be debt free and the fees would be taken from the creditors' money, not ours. I know everyone's circumstances will be different, and for you an IVA could represent a much better scenario than a DMP, but sadly it didn't work out the best way it could have done for us.
I can't wait until it's finished, but hopefully the opportunity for an early settlement will arise later down the line.
Get in touch with a few IVA companies as suggested above, go through your figures and they will be able to advise you which would probably be better for you as well as go through the pro's and con's of each x
6 year IVA accepted 7th March 2013... the start of a new journey!
Interest ought to be frozen under DM Protocol based DMPs, so there will be more to now consider when verifying the merits of both processes to determine the right way forward for you all as individuals.
The majority of consumer debt IVA's are for 5 years. However IVA's can be for longer or shorter periods.
If there is equity to release in a final year IVA which cannot be released due to the impossibility of a new or re-mortgage then the IVA will be extended for up to 12 months. Otherwise other IVA's are either extended to catch up with a payment break or because a creditor (as in mummytoelliekate posts)believes that what is on offer is not good enough.
Thankfully those are in the minority but they do exist and sometimes even ClearDebt has had that proposition put forward as a modification on a small minority of our cases.
At the end of the day it is up to the debtor to decide whether to accept or otherwise.
Last edited by David Mond on Thu Apr 04, 2013 2:09 am, edited 1 time in total.
Regards, David Mond, Insolvency Practitioner for over 46 years. Personal Insolvency Practitioner of the year 2012, Personal Insolvency Practitioner of the year finalist 2013 & 2014 awarded by Insolvency & Rescue Magazine and 2015 finalist for Personal Insolvency Firm of the Year.
font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by MelanieGiles
Interest ought to be frozen under DM Protocol based DMPs, so there will be more to now consider when verifying the merits of both processes to determine the right way forward for you all as individuals.
Providing the creditor subscribes to the protocol that is..........
Last edited by ClareSilver on Thu Apr 04, 2013 9:49 am, edited 1 time in total.
