Please help me decide between IVA or DMP. It's very confusing

[angelareynolds69]

hi whats best IVA or debt management plan, I am torn between the two but dont want anyone putting a charge on my property(this is a 50% shared ownership property)
Please help me to decide its very confusing Thanks angela

[Shining]

Hi angela, it really is your decision. I will tell you what I decided and how I came to the decision. I'm in an IVA because a DMP for me would have taken a lot longer than 60 months to complete (assuming interest could be frozen). I also wanted protection from creditors.

There are other posters who are happy within a DMP. Has a professional chatted through your options and the benefits of both. They're both excellent debt resources in their own rights.

[Foggy]

As posted on your other thread:

Hi. a lot will depend upon your level of debt. If you are confident that your payments under a DMP will pay off the loansd within 6 - 7 years and that the creditors WILL stop charging interest for the whole period, then a DMP might be an option.

However, a DMP isn't binding and creditors can back out and demand payment, add charges and interest at any time. They will still default your credit file and those defaults will remain there for 6 years after you have paid off the debt.

An IVA is legally binding on both sides, the creditors cannot back out and cannot add interest or pursue you in any way. Whatever you haven't paid back at the end will be written off. And, no, they should not visit and sieze goods

I would suggest you have a word with a few companies, those purporting to be free (regarded widely as charities) will more than likely prefer the DMP initially as that is really their bag and what they are very good at. Have a look at www.iva.com and speak to a couple of firms there. It's free and without obligation.

[MelanieGiles]

In a DMP you will still run the risk that a creditor could place a charge against your property. This is not possible in an IVA without leave of the Court - which it would be very unlikely to provide if a set agreement was in place.

This, however, should not be the only consideration between the various options available to you, and I recommend that you have a chat with an insolvency practitioner who will give you unbaised and independent advice about all options - tailored to suit your specific circumstances which we are unable to provide you with on the forum.