conflicting advice

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hayleyfaith

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Post by hayleyfaith » Sun Jul 25, 2010 9:06 pm
We have been offered an IVA from freeman Jones and a DMP from cccs, having conflicting advice we have a debt of around 25k and now unsure which way to go. Which is the best route a DMP or an iva. Ive read the benefits of each one but still uncerain which plan you should try first
Please help so confused
 
 

Shining

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Post by Shining » Sun Jul 25, 2010 9:12 pm
Hi Hayley and welcome to the forum. If you talk to Freeman Jones they will give you excellent impartial advice.

Within an IVA you're protected from your creditors and all interest is stopped. With a DMP you don't have the protection, but they are both excellent debt solutions and only a professional can help you decide.

Did you take the advice of 2 or 3 companies? x
IVA final payment left the bank on the 26th January 2013...looking forward to a debt free future.
 
 

Adam Davies

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Post by Adam Davies » Sun Jul 25, 2010 9:17 pm
Hi
Did either company discuss other options with you ? Do you expect your circumstances to improve over the next few years ? How much has each company calculated that you can afford to pay into your solution ?
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Andam Davies
 
 

hayleyfaith

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Post by hayleyfaith » Sun Jul 25, 2010 9:28 pm
Hi iva is 320 and dmp is 480 which will be quite tight for us to manage. We just dont know which plan is the best for us in the long run and our circumstances may change if i work more hours in 12 months time when my youngest goes to school, but we currently have no or very little 2k equity in our house.
Thanks
 
 

hayleyfaith

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Post by hayleyfaith » Sun Jul 25, 2010 9:29 pm
That was me that posted the question i have no registered properly If ive confused you
 
 

hayleyfaith

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Post by hayleyfaith » Sun Jul 25, 2010 10:18 pm
Also cccs said if excepted the dmp would be finished in 4 years 6months, but im feeling unsure if creditors will except this plan as it seems a lot of them reject dmp, creditors are first direct, egg being more than half of debt, natwest, halifax cc, virgin cc, littlewoods and next.

My hubby has cancelled direct debits and already had email of first direct as we bank with them asking why we cancelled personl loan dd. We want to move forward asap but realy unsure which company and offer to proceed with now

Advice would be lots of help as we have no friends or relatives to turn too about our situation. This has been a very stressfull time for us and our childrn and we need to get on top of our debt asap but no really dont know best option.

Please help very grateful
 
 

plasticdaft

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Post by plasticdaft » Sun Jul 25, 2010 10:36 pm
CCCS would be calculating the 4 years and 6 months if all interest if frozen I assume so to tell you that as a fact is poor. Given that an IVA normally lasts 60 months and at best your dmp would last 54 months(and at worst a hell of a lot longer),I would go for the IVA,but thats only my opinion on the matter.

Some of your creditors however would possibly prefer you to do a dmp if your debts could potentially be cleared faster and in full rather than you use an IVA which will involve large fees coming from your contributions,meaning they would ultimately get less of a return.

I would still opt for the security of the IVA as creditors can still pursue court action for debts in a dmp. Added to that the fact that in an IVA you should have a date that you will finish paying by,in a dmp if interest gets frozen for the whole time of it I would be amazed,meaning you could end up paying money back for much longer than you thought to start with.

Paul
Discharged today the 8th feb 2012. View is much brighter now.
Continuing to rebuild our credit worthiness.
 
 

MelanieGiles

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Post by MelanieGiles » Sun Jul 25, 2010 10:59 pm
If you can show that you could repay your debts in a non-fee paying/interest freezing DMP, then I am a little suprised that you are being advised that an IVA would be a better option - but Paul does make good points in that this is in no way certain.

Having received advice now from two companies, what do you actually percieve are the advantages of either option?
Regards, Melanie Giles, Insolvency Practitioner
 
 

hayleyfaith

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Post by hayleyfaith » Sun Jul 25, 2010 11:18 pm
Thanks for your replys
will it effect my situation if i go with dmp then if creditors dont agree with plan then proceed with an iva is it possible to change options at this stage.

Is there different effects on your credit ratings or do they have the same effect.

I think the dmp would be a better option if interest was frozen but find it scary how it can whirl out of controll causing further stress.

The benefits of the IVA are that it is an offical agreement but scary with the equity relise at the end as i still owe parents 6000 deposist from when i bought my house so unlikley to be able to give it them back anytime soon with an IVA DONT THINK THEY BE VERY IMPRESSED[:(]

Thanks for your replys good to talk about it but still feeling a little lost it doesnt seem theres much difference either way really. As it seems a dmp gets rejected from lots of creditors i still might go IVA for peace of mind

PLEASE POST ANY FURTHER HELP OR SUPPORT AND ILL CATCH UP IN THE MORNING MUST TRY AND SLEEP NOW NIGHT GUYS X
 
 

hayleyfaith

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Post by hayleyfaith » Sun Jul 25, 2010 11:23 pm
SORRY ALSO WHEN MY HUBBY SPOKE TO CCCS THEY SAID WE WOULD NOT GET EXCEPTED FOR AN IVA AS WE ARE ABLE TO PROCEED WITH A DMP THE ADVISOR FROM FREEMEN JONES SAID THAT CCCS WHERE ADVISING US WRONG AND THAT A DMP WOULD BUT OUR PROPERTY AT RISK AND THAT WE WOULD GAIN MORE CCJS THIS WAY AGAINST OUR NAME

SURE YOU CAN SEE WHY WE ARE SO CONFUSED SO AT THE MOMENT WE ARE READY TO SIGN FOR EITHER ONE BUT WHICH ONE WHO KNOWS

DEFO TO BED NOW

MANY THANKS HAYLEY
 
 

MelanieGiles

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Post by MelanieGiles » Mon Jul 26, 2010 12:32 am
No one - note even the CCCS - can categorically state to you that you would not be accepted for an IVA. That is the right of the majority voting power of creditors.

If you feel that the protection afforded by the IVA gives you better advantage, then call Freeman Jones to their word and ask them to put forward an IVA for you. Don't be suprised if it is rejected and then they suggest that you do a DMP with their sister company, Gregory Pennington.
Regards, Melanie Giles, Insolvency Practitioner
 
 

Adam Davies

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Post by Adam Davies » Mon Jul 26, 2010 9:30 am
Hi
I think affordability is the key here. Two companies have calculated your disposable income is 480 pounds and 320 pounds, a big difference.
If your circumstances are likely to improve in twelve months then, on the limited info above, a debt management plan seems a sensible route, however it must be affordable. If your circumstances do not change and creditors do not freeze interest etc in a DMP you could then look at possibly moving into an IVA.
If the calculation by the CCCS is correct and your affordable DI is 480 pounds then a debt management plan was the right advice. Even a DMP based on payments of 320 pounds on a debt of 25k is reasonable advice.
Maybe a debt management plan somewhere in the middle would suit ?
Take advice from another couple of companies/experts
Regards
Andam Davies
 
 

hayleyfaith

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Post by hayleyfaith » Mon Jul 26, 2010 9:45 am
Thanks so much for your advice and infomation everybody it has been very helpful I think we will run with the advice of the cccs and if this fails proceed with an iva, we can manage on th forcast of 480 but very tight are we able to ask for a lower payment.

This forum has been very helpful cant thankyou all enough for your help

All the best
Hayley
 
 

MelanieGiles

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Post by MelanieGiles » Mon Jul 26, 2010 10:30 am
Why don't you give Andy Davie a call as well. Andy advises on IVAs and DMPs and has no particular leaning to either solution, so you will get clear and impartial advice as to the plus and minus points of each option. It won't cost you anything, and could go a long way to help you make that important decision.
Regards, Melanie Giles, Insolvency Practitioner
 
 

Michael Peoples

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Post by Michael Peoples » Mon Jul 26, 2010 10:36 am
I would definitely contact Andy as many people are quite cynical about the so called 'free sector' and 'charities'. While there may be no monthly charge by the 'free' sector it is widely claimed that this is because they do not get interest and charges stopped as successfully as the commercial sector.

These 'charities' are paid a commission by the banks just like debt collectors and if they do not get the interest and charges stopped you are worse off than being with a commercial organisation and could be paying for a much longer period of time.
Michael Peoples | McCambridge Duffy Insolvency Practitioners
http://www.mccambridgeduffy.com
If you would like to talk to me about proposing an IVA or have any questions at all please visit www.mccambridgeduffy.com
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