This is my first post, although I have been reading several over the last few weeks. The feeling of support and community is overwhelming! I have a quick question and would greatly appreciate any advice.We have been in a DMP for two years now, and the company dealing with it have suggested going for an IVA now. I've got the paperwork here. On the I&E a couple of things have changed. Unfortunately due to the recession my husband's pay is approx. 100 pounds less than at the start of the DMP, while my self employed earnings are also down about 100. On the other side of it, as our mortgage is interest only, the payments have gone down by about 400 pounds. My concerns are that because of this, will our payments into the IVA rocket up to an unaffordable rate?
Hi Poorme
Firstly, welcome to the forum and I’m sure you will find it beneficial.
To answer your question, entering an IVA is only ever advisable if the monthly contributions you are expected to pay over the term of the arrangement are set at a level that you can afford. This is critical and only once you are 100% happy with the proposal should you commit to it.
If the current monthly payment is high and you feel that other factors may pose problems then it is best to speak to your IP before committing.
Thanks so much for the replies. The reason I was given at the start of the DMP was that there was not enough disposable income for an IVA. When I emailed and told the man dealing with us about the drop in income he said to send in the paperwork and they would have a look at it.
That doesn't make sense! First of all they tell you that you cannot do an IVA due to your disposable income being too low, and once your salary reduces then they tell you they will look into it.
How much have you been paying into your DMP each month, and how much do you owe to creditors in total?
If you have been paying someone a fee for doing your DMP I would look elsewhere to start an IVA,because you could have been 2 years down the line of sorting out your debts in an IVA by now!!
Has the level of debt reduced by much in that time??
I know you may feel obliged to stick with your current company but please look at a few others(you can get reviews at www.iva.com),before deciding.
It would be likely that you may have had to switch to interest only during an IVA anyway but a fresh income and expenditure was re-assess what disposable income you have so dont worry about that.
Paul
Discharged today the 8th feb 2012. View is much brighter now.
Continuing to rebuild our credit worthiness.
Hi Guys, thanks so much for your responses its so good to be able to talk freely on here about money problems. I think I will certainly take your advice and have a chat with some other firms before committing. Thanks again.
Hi PoorMe and welcome to the forum from myself too. All excellent advice above and I too would urge you to speak to 2 or 3 providors before making a decision. x
IVA final payment left the bank on the 26th January 2013...looking forward to a debt free future.
An IVA certainly sounds like an option and hopefully you can get this resolved soon. I am still confused as to why an IVA was not offered originally but it is possible that your self employment was an issue. Many firms including those in the free sector recommend DMPs to the self employed because they do not have the experienced staff to deal with these type of cases. Make sure your choice of IP firm has experience of the self employed and whoever you speak to puts you completely at ease.
A belated welcome from me as well. I echo all of the above advice. Let us know how you are getting on, and we are always here for advice and support.
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
