Hi, My husband and i have a total of £49k in debt, with 4 creditors. We are stuck on deciding whether to enter into IVA or DMP ?
I can see the advantages with them both - If we tried for a DMP and the interest was not 0 then it wouldnt work, so Im not sure if we should just go straight to IVA? We can budget to pay around £550 to £600 per month - Any preferences ?
Both a DMP and IVA have their advantages, but it's very difficult to advise you without knowing your full circumstances.
I would recommend that you speak to an Insolvency Practitioner who will be able to to advise you of all your options. Have a look at www.iva.co.uk, or speak to any of the experts who post on here, their details are in the experts' section at the side of the page.
Hi
Speak to several experts/companies
If you do have both options open to you I would go for the IVA.You will have a clear end date, protection from any creditor legal action, all interest and charges stopped and no contact from your creditors
Regards
A good link as a starting point posted above by Skippy, talk to 2 if not 3 companies to ensure you get impartial advice, the advice will be free and all debt solutions can be discussed and case specific advice given. All the best x
IVA final payment left the bank on the 26th January 2013...looking forward to a debt free future.
You would need to speak to an IP firm and have a proper income and expenditure account calculated. Your IP will look at each as an individual and recommend the best way forward for each of you. It is not unusual for one party to have the bulk of the debt and the advice given to each party can differ.
One thing to think about is your personal priorities. These are different for everybody.
Some people are very happy to take as long as it takes to repay the full amount owed, provided that their creditors work with them (perhaps via a debt management plan) to reduce or eliminate interest so that it does not take forever.
Other people prefer to have the fixed term and certainties of an IVA.
Andrew Graveson
Bright Oak Ltd
UK Debt Management Company
Website: www.brightoak.co.uk
I am in the position of having been in a DMP for 18 months then a IVA for 2 years and now bankruptcy.
It does depend on your situation but I am still to see ANY advantages in using a DMP. Interest is rarely frozen and you will spend decades paying off your creditors most probably.
Granted it does feel originally feel better in a DMP that you are not subject to restricts of credit and can still feasibly take out further borrowings but in reality you are probably kidding yourself.
The best thing I ever did was get really advice from experts(I took me 18 months to do this)
I recommend Melanie Giles at The IVA Advice Bureau and more recently Paul Johns from Reviva UK both I think are listed on Meet the Experts.
**Important** Get advice and deal with it head on and most importantly DO NOT PANIC! You will always be allowed enough money for reasonable expenses and an IVA is only 5 years max.
Thanks for all your messages, I am now being told that although our debt is £49k we would be better to look at DMP as 25% of the debt is with Northern Rock and "apperently" they are not that cooperative (fine ones to talk!) - as we have a good sum to pay back each month, they would most likely reject! This has left me feeling more confused! I certainly dont want to apply for IVA and get turned down and be left with more debt! Oh what to do...
Which company have you spoken to Sam? If they hold 25% then you might be ok.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
paulgm_2000 wrote:
I am in the position of having been in a DMP for 18 months then a IVA for 2 years and now bankruptcy.
It does depend on your situation but I am still to see ANY advantages in using a DMP. Interest is rarely frozen and you will spend decades paying off your creditors most probably.
Granted it does feel originally feel better in a DMP that you are not subject to restricts of credit and can still feasibly take out further borrowings but in reality you are probably kidding yourself.
The best thing I ever did was get really advice from experts(I took me 18 months to do this)
I recommend Melanie Giles at The IVA Advice Bureau and more recently Paul Johns from Reviva UK both I think are listed on Meet the Experts.
**Important** Get advice and deal with it head on and most importantly DO NOT PANIC! You will always be allowed enough money for reasonable expenses and an IVA is only 5 years max.
18 months to be proactive that's not bad I took a ver shameful 5 years
Last edited by sg6646 on Wed Oct 13, 2010 8:54 pm, edited 1 time in total.
Northern Rock are actually one of the most co-operative creditors I deal with! Who has told you that they are unlikely to accept an IVA, and what experience do they have to draw from? They do have criteria as Andy has stated, but this can only be assessed by conducting a full fact-find into your circumstances to identify all options.
I agree you should take another opinion before you reject the IVA out of hand. Given that many firms operate on a 'no win no fee' basis, you have nothing to lose by putting forward an IVA proposal. If rejected you can still do a DMP so it is worth considering.
A DMP may well be the best option for you and any IP firm will discuss this with you. However, if a DMP is recommended it will be because that is the correct advise and not because of some perceived notion about N Rock.
We always recommend that people take more than one opinion.
Visit the link that Skippy provided, there are some good companies on there.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
