IVA-DMP Hybrid

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GottaGetThruThis
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by GottaGetThruThis » Sun Dec 24, 2017 1:55 am
From https://www.iva.co.uk/will-my-iva-be-accepted:
"Creditors may feel an IVA is inappropriate if the debtor is able to clear their debts within 5 years. E.g. if someone owes £15000 and has £300/mth disposable income. The £300 may not be enough to meet the contractual repayments, and they may be insolvent, creditors may conclude that a repayment plan such as a Debt Management Plan could clear the debt in less time than an IVA."

Is it possible to create a formal agreement of 5 years of equal instalments with no write-off for creditors, in return for no further interest and possibly no formal insolvency registration for the debtor?

Must it be in the form of an IVA in order to keep legal action at bay? The problem with a DMP seems to be that a single default or CCJ would defeat the purpose of offering more than creditors would get in an IVA to improve mortgage chances by avoiding insolvency.
Last edited by GottaGetThruThis on Wed Dec 27, 2017 1:36 am, edited 1 time in total.
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luluj
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by luluj » Sun Dec 24, 2017 6:39 am
In order to refrain from formal insolvency action it would be through the DMP route - there are professional services out there that can set these up for you at a price or you can negotiate with creditors direct.
My only concern with a DMP is that at any time creditors can seek full payment with interest and therefore for the duration of the DMP there is a risk.

Regarding getting a mortgage afterwards you would be best placed to speak with one of our forum mortgage experts Ryan and/or Shaun. Both come with great experience dealing with complex cases. I can personally vouch for Ryan.
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kallis3
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by kallis3 » Sun Dec 24, 2017 8:52 am
I agree with luluj - you run the risk of owing substantially more with a DMP whereas with an IVA you can sit back secure in the knowledge that as long as you continue your payments you will be debt free by the end.
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Foggy
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by Foggy » Sun Dec 24, 2017 10:04 am
I agree with the above -- any formal arrangement would be registered in one way another and defaults thereby created would also appear on your credit files. A DMP is the only way to avoid registration, although they are still free to lodge defaults, which will sit on your account for 6 years from when they lodge them, which could be at any time of their choosing really, as you have no formal agreement to date from. As you know PDL's are nototiously un co-operative and can become quite aggressive.

You are in debt and seemingly unable to pay this back --- you cannot get what you are seeking --- which is, effectively a "Get Out of Jail Free" card, other than by adheruing to the loan agreements and paying as agreed.

You really need to chat to an insolvency firm for specific advice.
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luluj
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by luluj » Sun Dec 24, 2017 11:03 am
In order to refrain from formal insolvency action it would be through the DMP route - there are professional services out there that can set these up for you at a price or you can negotiate with creditors direct.
My only concern with a DMP is that at any time creditors can seek full payment with interest and therefore for the duration of the DMP there is a risk.

Regarding getting a mortgage afterwards you would be best placed to speak with one of our forum mortgage experts Ryan and/or Shaun. Both come with great experience dealing with complex cases. I can personally vouch for Ryan.
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