Hello all, just looking for some advice or for some one with some experience in this to shed some light on my situation. If I'm honest, I feel like my IP should have given me a DMP to start with - They kinda talked me out of it saying it could take 10 years to clear my debt.... (Mis selling? Probably)
I'm 12 months into my IVA, my total debt is at around £11,000. With IP fees at £3600.
So grand total to pay: £14600 less the £1200 I have already paid. Leaving £13400. These numbers are approx as they are yet to get final balances from my creditors.
I'm currently paying £100 pm for 60 months - which is fine. However, doing some quick maths - I can clear the entire debt (not including IP fees) of £11,000 in 48 months paying around £230 a month - it fits into my budget.
The fees mean I will be paying more to cover the total balance in 48 months. So they could charge me almost £300 pm if they wished.
I obviously would like to avoid this, get rid of my IVA completely and just slip into a DMP - potentially with the same company.
1. How likely would my IP buy my proposal? - my creditors get their full debt back, but my IP looses out on those Juicy fees.
2. If my IP was happy to go ahead with this, what does that mean for my credit file / remaining on the insolvency register? Could I request to be released from the IVA and have it removed from my credit file? (One aspect of me wanting this, is that it is very hard to get a place to live with an IVA on your credit report)
3. What happens to the £1200 I have already paid in? Does that stay with my IP? does it go towards the DMP if they agree to action it? Will they want me to pay the remainder of the IP fees?
The reason I want to switch to DMP is that I literally hate feeling that someone is scrutinizing everything I spend, I feel like I'm in some sort of IVA prison and it is wreaking havoc on my mental health, seriously, I've submitted my docs for annual review and have hardly slept since.
I have also had a payrise at work meaning I now earn about £300 more pm - money that I could be chucking at a DMP and actually paying my debt off! I don't want my payments to increase to £400 PM or something crazy because I have to pay IP fees too.
4. Other options - could I fail the IVA, go to another provider and get a DMP? Is that risky? Will my IP want the money for the rest of the fees? I presume the IVA will stick on my credit file that way.
Don't forget that with a DMP there is no guarantee that interest and charges will be frozen so you could, potentially, owe more than you do now.
I'm curious to know how you are only paying £100 a month when you state you could pay more in a DMP. However, you could let your IVA fail and go onto a DMP. Depending on which company it is with you will still have to supply them with I&E and also pay fees. Stepchange and Payplan are the only ones who don't charge.
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
Main point -- credit file --- you are stuck with the IVA on your file regardless. And a failed IVA will look even worse.
You can stop it at any point, by request to your IP or by missing three payments. You will then be free to pursue a DMP -- which the creditors may or may not comply with. Creditors will also be free to pursue any enforcement / collection procedures they feel fit.
Looking at the figures you quote, it would appear that your IP is trying to give you an 'easy ride'. Fees will depend on the basis they are being charged, which should be detailed in your paperwork. The £1200 already paid will, in all probability, have gone towards your nominees fee ( for setting the IVA up ). Fees are far from "juicy", as evidenced by many insolvency firms closing down and the industry being dominated by the "Easyjet" IVA factories giving minimal service.
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