I would much rather negotiate directly with the creditors and agree a DMP which is a route I was not informed about during this process.
The first meeting with the creditors was on 12/02/2018 and the second meeting on 19/02. I received written confirmation that the IVA had been approved on 20/02.
Can this still be cancelled? Also, am I likely to incur any charges if I do so, considering we are still in the early stages of the IVA?
They can take longer to pay.
Creditors don’t tend to freeze interest like they do in an IVA.
Creditors can still contact you or others companies who have bought the debt, and can take action to try and recover the money even when you are in a DMP. Thank essentially could mean bailiffs calling or threat of court action.
These are the main reasons I went with an IVA. I was already stressed and didn’t want to add to it by the things I’ve mentioned.
Make sure you really do talk this one through with your IP or the citizens advice bureau which can give impartial advice.
It was 6 years ago since I took advice so I would check if things have changed to make DMP’s better.
Only from doing a bit of reading, it could be that freezing interest is down to the discretion of the creditor.
What is the same is that a DMP is not legally bound by terms and therefore creditors are not legally bound to stop contact like an IVA especially if you deal with them direct.
Hopefully someone else will come along and be less confusing than me!!
Why do you feel you were not advised properly?
With a DMP there is no guarantee that interest and charges will be frozen, it will go on for longer and creditors can continue to contact you.
You can let it fail by missing 3 payments.
When I first called the debt helpline they didn't go through other options such as DMP.
Given the nature of my job some employer might have reservations about hiring a person with an IVA and 5/ 6 years is a long time to be tied up.
Also, I would like to apply for British citizenship and am worried this will backfire on me. I have been living and working in the UK for 18 years and never had any issues.
Unfortunately due to unforeseen circumstances I fell behind with my credit card payments and now I am in debt. I kept it for myself for a long time but last week I opened up to my close friends and family and they are willing to help come out of this hole. At this stage a DMP is a better option.
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