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    • Danny008
    • By Danny008 9th Oct 17, 9:43 PM
    • 10Posts
    • 4Thanks
    Danny008
    IVA or DMP
    • #1
    • 9th Oct 17, 9:43 PM
    IVA or DMP 9th Oct 17 at 9:43 PM
    I've recently done my SOA with stepchange and my primary debt solution is an IVA. I did have my heart set on a DMP but it will be 14 years long. The thing that worries me about an IVA is if it fails for some reason I'm back at square one. Also the possible remortgaging/secured loan at the 5th year. Anyone else choose an IVA over a DMP and how did it go?
Page 1
    • sourcrates
    • By sourcrates 9th Oct 17, 9:50 PM
    • 12,174 Posts
    • 11,636 Thanks
    sourcrates
    • #2
    • 9th Oct 17, 9:50 PM
    • #2
    • 9th Oct 17, 9:50 PM
    Hi,

    It’s certainly a big decision to make, 14 years far too long, however, don’t rush into an IVA, lots of people fall foul of the equity release clause in year 5, I wasn’t a homeowner, so wasn’t an issue for me, I did an extra year of payments.

    Start with the DMP budget well enough to save a good emergency fund, then try and use that fund to settle individual debts as and when you can, see how that goes.
    I'm a Board Guide on the Debt-Free Wannabe, Credit File And Ratings, and
    Bankruptcy And Living With It, boards. I'm a volunteer to help the boards run smoothly, and I can move and merge posts there, and delete spam.
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.

    For free debt advice, contact either : Stepchange, National Debtline, or, CAB.
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    • Danny008
    • By Danny008 9th Oct 17, 10:04 PM
    • 10 Posts
    • 4 Thanks
    Danny008
    • #3
    • 9th Oct 17, 10:04 PM
    • #3
    • 9th Oct 17, 10:04 PM
    I know that's my main worry. Stepchange have said that everyone with an IVA through them that has applied to re mortgage has been rejected so just done another year. My thoughts on the 14 year DMP were that it was too long but I was hoping to get it down by saving and offering F&F settlements.
    • Grebbie212
    • By Grebbie212 10th Oct 17, 9:35 AM
    • 2 Posts
    • 1 Thanks
    Grebbie212
    • #4
    • 10th Oct 17, 9:35 AM
    • #4
    • 10th Oct 17, 9:35 AM
    Hi, I make my last 2 payments on a 6 year IVA, which they (Creditfix) extended by a year due to equity in my house. Although it has been a very difficult 7 years of having no credit cards or Bank Loans we will finally be Debit free after having a debt of 40-45k. Personally, I would go down the IVA route cut your losses and get paid off and down quicker than a DMP, but that’s my personal opinion. I think it greatly depends on how much debt u have and whether u own your house etc. Our IVA was an exceptional 6 years +1 year, your setup maybe different. Maybe book an appointment with an adviser and see what they come out with and then do a Pro vs Con exercise and if it turns out that it’s right for and feels right. Then don’t waste anytime get signed up and get it going. The quicker I start the quicker it’s done.

    Hope this helps
    • Danny008
    • By Danny008 10th Oct 17, 4:12 PM
    • 10 Posts
    • 4 Thanks
    Danny008
    • #5
    • 10th Oct 17, 4:12 PM
    • #5
    • 10th Oct 17, 4:12 PM
    Hi thanks for your reply. We have 48k of debt and we own our own house. We have an nram unsecured loan so we may have to go for a 6 year iva too, with the possibility of 7 if we can't remortgage. I'm going to have a chat with an IP over the next few days and see what I think after that. Did you have any problems throughout the iva?
    • Bedsit Bob
    • By Bedsit Bob 10th Oct 17, 5:01 PM
    • 9,708 Posts
    • 50,998 Thanks
    Bedsit Bob
    • #6
    • 10th Oct 17, 5:01 PM
    • #6
    • 10th Oct 17, 5:01 PM
    Any chance you could cut spending to the bone and/or boost income, thereby shortening the time period for a DMP?
    My job is Top Secret. Even I don't know what I'm doing.

    Amount I have so far denied the BBC - £1161
    • Danny008
    • By Danny008 10th Oct 17, 5:15 PM
    • 10 Posts
    • 4 Thanks
    Danny008
    • #7
    • 10th Oct 17, 5:15 PM
    • #7
    • 10th Oct 17, 5:15 PM
    Possibly. Would it be best to save and offer F&F or pay extra into DMP?
    • Bedsit Bob
    • By Bedsit Bob 10th Oct 17, 5:21 PM
    • 9,708 Posts
    • 50,998 Thanks
    Bedsit Bob
    • #8
    • 10th Oct 17, 5:21 PM
    • #8
    • 10th Oct 17, 5:21 PM
    I'd leave that question, until you've figured out if you can shorten your DMP enough to make one viable.

    I suggest posting an SOA (link below), so the members can advise on how to free up some money, so you can do a reasonably short DMP.

    http://www.stoozing.com/calculator/soa.php
    My job is Top Secret. Even I don't know what I'm doing.

    Amount I have so far denied the BBC - £1161
    • z1a
    • By z1a 10th Oct 17, 6:01 PM
    • 683 Posts
    • 535 Thanks
    z1a
    • #9
    • 10th Oct 17, 6:01 PM
    • #9
    • 10th Oct 17, 6:01 PM
    See if you can remortgage enough to do an instant IVA for an immediate settlement, I did and creditors accepted about 30% of debt. I did it through Grant Thornton.
    • jon1965
    • By jon1965 16th Oct 17, 9:32 PM
    • 302 Posts
    • 332 Thanks
    jon1965
    Here is a question or two for you

    The debts that you have, how many were secured and how many were taken out prior to April 2007

    I also have similar sort of debt level but am just a little way off them being statute barred and with the new pre action protocols I am hopeful that many will go SB thus ending many years of debt
    • Funkym
    • By Funkym 16th Oct 17, 9:36 PM
    • 5 Posts
    • 1 Thanks
    Funkym
    Hi I was in a IVA for 6 years and it wasn't easy but I got by, as long as you send in your expenditures etc you will complete. The worst part was the final few months when they asked if we had equity in the house. Anyway it only took me a few months to build my credit rating up and a year later I got a mortgage! Good luck if you do decide x
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