www.iva.co.uk

I have made an arrangement with a company called alclear formally harrington brooks,to sort out my debts. By this i mean for a small fee they have made payment arrangements with my creditors. Is this an IVA?

Welcome,
This sounds like a DMP.
A Debt Management Plan (DMP) is an informal agreement between you and your creditors where you will come to an arrangement to make reduced payments towards the total amount of your debt

How much have you paid (small fee)?
How much are the debts for?

I owe around about £13000 and I pay £60 a week and around about £8 of this is a fee for alcear. Is a DMP the same thing as an IVA? I ask because i have spoken to a mortgage advisor who has informed me that if this is an IVA it will affect any chance of a mortgage until it is finished.

sblack wrote:

Welcome,
This sounds like a DMP.
A Debt Management Plan (DMP) is an informal agreement between you and your creditors where you will come to an arrangement to make reduced payments towards the total amount of your debt

How much have you paid (small fee)?
How much are the debts for?

Sounds like a Debt Management Plan to me as you would know if you were in an iva as lots of forms to sign, creditrs meeting would be held etc.
The difference between the two is that a DMP is an informal arrangement and your creditors do not have to abide by it or stop charging interest and it can go on for many years.
An iva is a legaly binding agreement between you and your creditors for a fixed period (usually 60 months) and any remaining debt after the iva and fees is written off.

I am sure an expert will be along to advise more soon, but it may help to give more details on your situation, eg:
are you a home owner
how much are your debts and who are your creditors
what money do you have left over every month after paying essential bills but not credit repayments. This would be your disposable income

Emma x

Sorry I was typing as you were replying, as I said I am sure an expert will be around when they can to give you a more difinitive answer
Emma x

No, a DMP is not the same as an IVA. But £60 per week sounds like a ridiculous amount for a DMP, as these can be set up alot cheaper than that.
An expert will be along shortly to offer more in depth assistance.

It is not an IVA if your total debts are less than £15000

It is definately an informal agreement - as you would be pretty sure if you had entered into an IVA.

The Figures dont seem to add up, at those rates it will take over 20yrs!!!!!!! to pay off the debt IF the interest is frozen


15 down 45 to Go

You are in a debt management programme with AllClear Finance, previously known as Harrington Brooks.

The IVA arm of AllClear is One Advice, previous IP Sandra Marshall, a lady I know well and one with an impeccable reputation, so undoubtedly you are NOT in an IVA as you would have spoken to Sandra, a conversation you are unlikely to have forgotten.

I would urge you not to panic and to stick with what you have, as, despite what previous posters may have indicated, Debt Management Programmes should ALWAYS be based around what is affordable to you, and assuming that interest and charges are frozen, (HB have service level agreements with many creditors for your benefit) then a DMP at £13000 will take 5 years or less to clear. sooner if you increase your payment as you go along.

Regards.