www.iva.co.uk

Hi

i am currently in an dmp and have been looking into a IVA. i have recently had to cut my hours to 22 hours a week due to my health. i am also in receipt of DLA. Will my hours of work or DLA be affected if i did enter into an iva ?

any help would be appreciated

The DLA and wages will be used in calculating what you can afford to pay but you will also have allowances over and above the normal CCCS guidelines due to the disability.

Some creditors do not like IVAs where benefits are used as income but others are fine so long as the proposal is viable and sustainable.

An IVA may well be an option but bankruptcy certainly sounds a better option for you. Is there any reason why you would not opt for the bankruptcy route?

i would prefer not to use bankruptcy as of job might be an issue but also i have a car which i would need to keep - i am keeping up wit the payments and this is currently not included in the dmp

You would not necessarily lose your vehicle in bankruptcy as it depends on value and also whether it is on hire purchase or not. However, if you can maintain payments to the DMP and an IVA is a better option you should contact an IP firm for some free advice.

Many firms work 'no win no fee' and you could stay in your DMP until the IVA was approved. If it was rejected you would be no worse off as your DMP would just continue on. Nothing to lose by giving it a try.

Excellent advice from Michael.