im new: IVA or DMP?

[paddyuk]

Im currently with a company called baines and ernst who deal with my debt on a debt management programme, i pay something like £135 a month to them but they actually take i think its either £20 or £25 of this for themselves aswell as they took the first monthly payment. I have been on this plan for about a year now and im pleased with them except some of the companies still keep adding fees etc. Ive seen a few tv adverts lately about IVA's etc. so just doing some research into it now, the only problem i have with not going for one is the monthly spend seems to be on average about £200/m in an IVA and im not sure if i can afford that along with rent and bills etc, i

is this the lowest you can put into an IVA a month?
do you think i should leave baines&ernst after hearing about all these companies that are doing the same DMP for fee free now? would it look better towards my creditors

thanks

[sonyse2t5]

There is such a thing as a free lunch with DMP, and yes two well known DMP firms CCC and payplan do promise 100% of what you pay goes to lenders. I personally prefer that.

I believe in upfront fees for IVA but not for DMP as outcome is often unpredictable - as you have hinted -some lenders they are are stil charging interest and your balance can go up.

You can change DMP companies anytime, infact creditors love CCC and Payplan.As no fees go to B and E, more can go to your creditors. So I would switch if I was you.

For an IVA to settle your Debt problem you need to let know how much debt you have? Others here will be give you the prof' advice for free!

[aguise]

Hi Paddy an iva is worked out from your disposable income so will vary depending on your income and outgoings/ If you dont mind posting the amount of debt ,who to ,income and your outgoing expenditure then more advice can be given, also if you own property and if there is any equity. A much better answer of the options avaliable for you can be given then.

Ang

Please visit my blog at http://aguise.blogs.iva.co.uk/

[iva experts]

Welcome to the Forum Paddyuk,

Could you please post more details like how much your estimated debt amount is? who your creditors are? What is your disposable income (income minus general living expenses)?

My advice would be to call at least 2 or 3 companies, this way you can be assured that you have been given the right advice.

Best Regards. IVA Experts

[paddyuk]

i think my debt is around £15000 if i work it out mostly overdrafts with banks and stupid credit cards/store credit. i havent counted my student loan on top of this, should i?

im on 16k a year, i dont own my house i rent but my expenditure is quite high aswell just with bills and car etc.

ive just worked out that i have very little left after i take everything out.

[MelanieGiles]

As you have no assets - have you considered whether bankruptcy proceedings are more appropriate, as if you have very little left do you really feel you can support an ongoing payment arrangement with your creditors?

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

[paddyuk]

i have included my payment arrangement in this, i pay baines&ernst £135 at present always maintained that payment.

i also have a car on finance at £129/m

[MelanieGiles]

If you only have £135 to spare, and are already in a DMP, I would stick with that or consider bankruptcy proceedings. You really do not have the criteria for an IVA.

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