debt managment plan as a safety net ?

Get expert opinion. This is the place for new questions to be posted.
9 posts Page 1 of 1
 
 

joanna.ww

User avatar
Posts: 4
Joined: Sun Jul 25, 2010 9:45 am

Post by joanna.ww » Sun Jul 25, 2010 9:45 am
hi, have contacted a company and been advised to so an iva, but also to enter a debt managment plan first while waiting for the iva to be approved and as a safty net incase it is not approved, is this normal and how will i know if they apply for an iva or just keep me on the dmp . any advice appreciated, many thanks jo
 
 

Adam Davies

User avatar
Posts: 14596
Joined: Thu Mar 29, 2007 12:21 pm
Location:

Post by Adam Davies » Sun Jul 25, 2010 10:03 am
Hi and welcome
Just be careful of this as there are some companies that do this on a regular basis and enjoy fees from both the DMP and the IVA. It is called "flipping"
If your case is suitable for an IVA then this is the route to take straight away.If it is rejected you can soon drop into a debt management plan.
I suggest contacting a couple more experts or companies for a second opinion
Good luck
Regards
Andam Davies
 
 

kallis3

User avatar
Forum Expert
Posts: 76074
Joined: Mon Mar 17, 2008 4:02 pm
Location: United Kingdom

Post by kallis3 » Sun Jul 25, 2010 10:22 am
You do not need to enter a DMP first, as Andy says, if your application failed then you can do one then.

Visit www.iva.com and give one or two of the companies on there a ring. You will receive free and impartial advice.
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
 
 

MelanieGiles

User avatar
Industry Expert
Posts: 47612
Joined: Tue Jan 09, 2007 10:42 am
Location:

Post by MelanieGiles » Sun Jul 25, 2010 10:44 am
I cannot see the point of this, unless it is to provide more fees to the company you have approached. A good IP firm will help you to manage your creditors in the time that your IVA is being prepared, and as this should take no more than a few weeks, the DMP idea would nor appear to be necessary.
Regards, Melanie Giles, Insolvency Practitioner
 
 

joanna.ww

User avatar
Posts: 4
Joined: Sun Jul 25, 2010 9:45 am

Post by joanna.ww » Sun Jul 25, 2010 2:08 pm
hi, thanks for your quick responses, i will not be using this company (kensington financial managment) as i feel they do not have my interests at heart, like you say. I have sent in an enquiry to yourself Melanie and hope for some advice on what my options are , and hope to move on from there as the stress of the current situation is having an imense strain on our home life and all we think about is what bill to pay next . thanks again for all your advice, jo
 
 

kallis3

User avatar
Forum Expert
Posts: 76074
Joined: Mon Mar 17, 2008 4:02 pm
Location: United Kingdom

Post by kallis3 » Sun Jul 25, 2010 2:21 pm
Excellent company for you to have chosen Joanna. You will be in safe hands.
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
 
 

MelanieGiles

User avatar
Industry Expert
Posts: 47612
Joined: Tue Jan 09, 2007 10:42 am
Location:

Post by MelanieGiles » Sun Jul 25, 2010 6:53 pm
I read your enquiry form yesterday Joanna, and from the brief information we ask for at the early stages it does appear that an IVA is a suitable option for you. My colleague Melanie Nicholas will be in touch first thing tomorrow morning to arrange to have a chat with you.
Regards, Melanie Giles, Insolvency Practitioner
 
 

joanna.ww

User avatar
Posts: 4
Joined: Sun Jul 25, 2010 9:45 am

Post by joanna.ww » Sun Jul 25, 2010 8:30 pm
thank you .
 
 

Andrew Graveson

User avatar
Posts: 933
Joined: Wed Jun 13, 2007 7:52 pm
Location: United Kingdom

Post by Andrew Graveson » Wed Jul 28, 2010 12:15 pm
The OFT have expressed significant concern about "flipping" people between debt solutions where there is no clear benefit to the individual.

Quite right too. In most cases the only beneficiaries are the solution providers who generate considerably higher fees by doing so.
Andrew Graveson
Bright Oak Ltd
UK Debt Management Company
Website: www.brightoak.co.uk
9 posts Page 1 of 1
Return to “Ask IVA Forum and Industry experts”