Hi! I'm not sure how many creditors but she owed bout 40k! She paid a bit more wen her wage allowed! The creditors may just look at a DMP as more favourable as they are getting all debts repaid! You may also have to release equity etc at the end of the IVA! Again try for ppi which may reduce yr debts somewhat making 100p more likely! I'm not saying that a DMP should be done but it is worth considering!
I'm currently going through an IVA (draft stage) can't do with the stress of it all. Someone on here told me to look at it like a 5 year loan so roll on 2018
I absolutely agree that people should consider all their options, make sure they are fully informed of all debt solutions and then make the decision that suits their circumstances the best, I don't think a one size fits all approach works.
I don't particularly agree however that creditors will view a DMP more favourably, as its an informal option there is no guarantee that you will pay what you agree to pay long term, and indeed no statutory guidance in place to ensure you do, also within a DMP you can easily 'fiddle the figures' so to speak, there is no guarantee that what you say is your disposable income is actually the truth, a friend of mine has just completed a DMP with stepchange that started in 2008, yes she has repaid her debts and also had her interest frozen, but she also could afford to go to Las Vegas with friends last year and is frequently going away on foreign trips, all through her DMP, so I don't believe for a minute she was being entirely honest about her income and what she could afford to pay each month.
With an IVA creditors are guaranteed that an official body is overseeing your finances and that they are legally obliged to receive every penny they can from you as you are legally obliged to pay as much as you can back.
Hope so because I really don't want to go down DMP route. It may sound stupid but I actually want the safety of the IVA with an end in sight. Just need to get through this stage of not knowing quickly. Thanks for everyone who had take time out of their Sunday to reply. Mine has not been the best of days but tomorrow is a new day....
Could it be that the 82p is based upon current figures including equity release at the end of the 5 years? If so you may find that you cannot get a re-mortgage in the final year so will then do an additional 12 months payments in lieu of the equity which could substantially reduce the amount available but would fulfil the terms of the IVA. Also with a debt in th region of £40k a DMP would never be manageable as the chance of all creditors freezing interest etc would be low!! An IVA does offer protection and prevents the creditors going for charging orders etc.
