dmp increased to 8yrs would like advice on IVA

[klr81]

We recently took out a debt management scheme which we thought would last for 6yrs, however they have now said after consulting our creditors that the term has increased to approx 8yrs (big difference I know) The company that we are dealing with have contacted us to say that we would qualify for an IVA. Having read the info on this page everything that they are saying seems to be true.

I would just like some advice as to how other people found the process and if they find it worth while. Alos how would this affect us getting a mortage in the future, I understand about releasing the equity in the 4th year but just wanted some advice as to getting a mortgage if we went ahead with IVA. Thanks and sorry for the lebgth of the questions.

[MelanieGiles]

Hi kirsty

As a practising IP, I will leave the question of how people coped with the procedure to those who have actually gone through IVA's on the other side.

With regard to getting a mortgage, this is definately possible, but if you are proposing to do it during an IVA you need to bear in mind the following:-

1 You will need to find at least a 10% deposit which must be sourced from third party funds.
2 You will pay between 1/2 and 1% higher interest rate than standard high street rates.
3 You will need to ensure that your proposed mortgage payments are in line with your rent ie that by taking the mortgage out that you do not affect the affordability of your IVA payments.

I would never advise anyone to do a DMP over an IVA, unless they could get all of their creditors paid in full within a 5 year period. This does not seem the case in your circumstances, so good luck with your IVA search.

Are you going to use the same people who were managing your DMP or shop around? Continue to post your questions on the site and we will endeavour to assist.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[123debtsolutions]

I agree, shop around and personally I wouldn't use the same company that you have setup the DMP with for numerous reasons.
Please also review the forum, their are tons of questions and answers that may offer further information for you.

Best of Luck

Lee
www.123debtsolutions.co.uk - 08000 114 123

[klr81]

Hi all
Can anyone reccommend a good IVA company?

Thanks

[gizmo]

I would always recommend Thomas Charles from my own personal experience with them and having talked to a few other companies before I spoke to them. They are very professional and incredibly helpful. Do speak to several companies but please have a word with TC and do have a read through the forum where you can see other people's good and bad experiences with different companies.

[klr81]

Thanks Gizmo I will look into TC.

Thanks again

[lonely]

Hi Kirstyl,

I am thinking of using Finebridge if I go through with an IVA, and Brian there seems to really helpful and friendly. However, I am also weighing up the option of going down the DMP with CCCS.

Can you tell me why you chose the DMP over an IVA in the first place? Also, was all your interest stopped?
And why have they changed the terms that they first proposed?

Your help would be much appreciated.

Lonely

[klr81]

Hi Lonely

Sorry for not replying sooner. We had never heard of an IVA until the company that we had the DMP with contacted us to let us know. I did question this and the response that we got was that the figures that they had recieved back from our creditors were slightly higher than what we first predicted. We have decided to go with IVA simply because at least then when we know after 5 years we will be clear, the interest at the moment has been stopped but this has to be reviewed on a yearly basis, I know this also the case with and IVA but at least it is a set time period, and then we can concentrate on the future.
We have been told that because over 75% of our debt is with Northern Rock we should have a fairly straigjht foward case as long as we offer above their minimum pence per pound. Has anyone else has any experiance with an IVA with Northern Rock and how were they.

Thanks all.

[MelanieGiles]

Northern Rock require a minimum of 45p in the £ (although I have got IVA's through at 35-40p recently) but they are very tight on your expenditure so be prepared to have to make increased payments from those put forward in your proposal.

And as I say to all parties - do make sure that you can afford to pay any increases in the long term, before you accept creditor modifications.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[klr81]

Thanks for that Melanie, I shall found out how much we would offer and go from there.

Many Thanks again