www.iva.co.uk

Hi

We are currently in a dmp which has been running fine since last December and I just wondered whether there is any equivalent to the payment break in an iva for dmp's? It has always worried me what would happen if our p reg mondeo cost lots at mot time (like it did last year!)- it's not for a few months yet and we do try to save for emergencies but is a scary thought that we might get a £500 bill like last year.

Elaine

There should be no problem, should an unexpected emergency arise, in either taking a break or possibly reducing your DMP payment. DMP's are informal, and so should take into account any changes in circumstances with the minimum of fuss, just contact your provider if necessary.

Bear in mind though, that creditors usually agree to freeze interest on DMP's as long as payments are regular and on time. Some may start to charge interest again if you don't pay them, so better to avoid it if you can, or if unavoidable then do try and let your provider have as much advance notice as possible.

Regards.