I have just signed paperwork (3 days ago) for an IVA.
However, i'm worried I've done the wrong thing and should have tried to get a dmp in place instead.
I was advised that an IVA would be preferable as a DMP would take a long time with my level of debt.
However, i have a medical negligence claim that is currently ongoing and i expect my settlement of this claim to be around 70-80% of my debt.
I was advised by the finance company (3 different people in the same company) that a medical negligence pay-out is protected in law and will not go into the IVA. However, i have been researching this weekend and i don't believe that is true.
Therefore, at some point in the next 3 years, (possibly within the next 3 months) i expect to receive around 70-80% of my debts - this will go straight into the IVA but because it doesn't clear all of the debt the IVA will still run for the full course.
On a dmp plan the money would come to me and give me the chance to make offers to my creditors. Or even to fully pay some off and reduce the amount outstanding.
I feel that, given that i know money is coming in, even though i don't know how much or when, a dmp is more flexible and suitable if it can be put in place.
What are anybody else's views on this? does my argument sound right?
Also, as the IVA hasn't been put to creditors yet do i have a cooling off period and can just cancel without fees?
Any help very much appreciated, TIA
You can cancel your proposal prior to the creditors meeting and start up a DMP if this is what you prefer. Just tell them sooner rather than later.
As to whether medical negligence claims are protected I have no idea. I take it you know that this claim is definitely going to be paid?
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
Given the circumstances, a DMP could be a good idea, if for nothing else than to give you a bit of breathing space. Maybe a chat with Stepchange can be of help -- I only mention them because they do fee free DMPs and have a great working relationship with creditors on these.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014 http://foggy.blogs.iva.co.uk