Your first port of call would probably be
http://www.iva.com/as has been suggested earlier in this thread.
I agree also that you should not necessarily avoid, but think very carefully before dealing with anyone who asks you for funds up front. If asked for funds up front you should clarify first of all whether you are entitled to a refund of that money in the event that your arrangement is rejected.
I don't believe Simple IVA's are going to be rolling out anytime soon, IP's, Their regulatory bodies and BBA have a lot to iron out with the Insolvency Service and our friends in the Government.
Debt Management should only really be viewed as a temporary measure whilst you sort out your finances and is not really something to consider as a long term option.
I can picture the Debt Management spiel (What you may not know is that Debt Management is very sales orientated at the moment)and I suspect it would be most encouraging to hear a voice on the other end of the phone confidently telling you that the the Debt Management Company can freeze interest and charges on your accounts for you. The reality is it is very unlikely that all your creditors will agree to freeze interest and charges for an indefinite period. I suspect that yes they will agree to freeze interest and charges for an initial six month period.
Depending on where you set up your Debt Management plan could well determine how little or how much your creditors will be repaid during that first six months.
I'll give you 2 examples based upon you being able to afford £200 per month.
Example 1. You find A DMP provider who will take your £200 each month and, because they are funded by an external source, they can pay all of that £200 per month to your creditors. After 6 months your crediors will have received £1,200. 100% of what you have paid to the DMP provider.
Example 2. You find a DMP provider who will take your £200 per month. The 1 st month's payment goes to them as a 'Set up' fee. They charge 15% as a 'Management' charge of every monthly payment you make thereafter, so of your £200 that you paid in to them, they take a 'Management Fee' of £30 and give £170 to your creditors. So after 6 months you have paid £1,200. The DMP provider has taken £350 in fees and your creditors have received £850, which is only 70% of your £1,200.
So shop around before you commit to a debt management plan, because who you choose could determine how much your creditors actually get back. I am very anti DMP but if I had to recommend one, it would be one funded from an external source who gives 100% of
your hard earned to
your creditors.
You must also keep in mind that where creditors do agree to freeze interest and charges, they are at liberty to reverse that decision
at anytime as Debt Management is not legally binding on the debtor or the creditor.
Tell it like it is.
Tell it like it is.
