www.iva.co.uk

I am on a debt management plan. I have been told that now I am on this plan some of my creditors will not allow me to go to IVA is this true?

Hi and welcome.

Absolutely NOT true! I did DMP for 18 months before my IVA.

Hi there i can totally agree with Kallis3 - I regularly 'park' clients into a DMP for a short period prior to them embarking on an IVA. On some occasions it can help to do a short term DMP as difficult creditors such as MBNA will sell a debt on to a collection agency who will then vote yes in an IVA as opposed to MBNA who more often than not refuse clients IVA's. So a DMP can be a useful 'tool'to use in such cases. Having a DMP is definately not a hindereance to a future IVA, although the DMp company may try to say this in order to keep you in a plan!

Melanie

Hi kathleens,

That's certainly not true.....many of our clients change solution when their circumstances change.

What is important is that you find the best solution for you which will come down to your personal circumstances.

Seconded and thirded by me also.

There are numerous reasons why a VA may not immediately be viable upon first contact with a provider, too numerous to list here certainly, but to, in effect, close the door on that avenue forever for a reason that may only be temporary is not right and just doesn't make sense.

There is never any harm in taking a second opinion anyway, so I would point you towards www.iva.com have a look round on there and speak to 2 or 3 providers to get a fresh perspective.

Good luck and regards.

With Banks they don't like it if out of the blue they see an IVA proposal. They will vote NO! EGG is one of them and a DMP allows them to monitor you and study you a bit, its like they have to see you go down hill before they will give you a helping hand.

An IVA is a last resort, a DMP doesn't wreck you creditfile during the time you repay as lenders will record 'satisfactory' to the credit agencies. Rebuilding a credit is more difficult then people think...just think before you got into difficulties you would have had maybe 15 years of lending history gaining credit credit scoring points ....NOW how to repeat that without another 15 yrs and get the same score....near impossible especially now with every borrower 'a suspect for none payment.

Kalla, just to let you know a DMP will wreck your credit file as creditors will issue a default notice which will be recorded on your file.
Melanie

hi after speaking to melanie g today i am going on a dmp.does my overdraft of 6000 come into the plan as well as a personal loan to halifax as well thanks

Hi there

The only way a DMP can work is if you include ALL your debts - give your DMP provider all your creditor info - Did MelG recommend a DMP company to you? If she did you will be in safe hands

Melanie

hi yes i spoke to tina actually.she has reccommended vincent bond.am i able to keep my car as i pay 500 month for it and only had it 6 mths.i also owe tax money so is that inclued as well thanks

Hi mitsu9,

From previous experience I'd exercise caution on including tax debts in a debt management plan if that's what you're planning to do.

It would normally be better to come to an arrangement with the tax office personally and then deal with the rest of your creditors with a revised amount afterwards.

On the subject of credit rating and Default Notices it is not necessarily the case that Default Notices will be issued. Your DMP company should be able to tell you how each of your creditors is likely to react to your proposal.

Hi
I think reality is that your credit rating will be affected under a debt management plan.
Whilst not every creditor will issue a default notice I think that you should be prepared and resigned to the fact that your credit rating will be "wrecked".
Regards

I Know that MBNA will record 'Satisfactory' in peoples creditfiles in a DMP arrangement with them as an incentive to go DMP.I have seen letters to that effect but they can issue defaults too but it depends on how they see you....

MBNA always use the 'credit history' argument to ware off non payees.Other banks will record defaults.But its better that not everyone defaults you all at once.

But if they're going to do it anyway then what difference does it make whether it's one or all of them? You're still going to have defaults on your file.