Cccs Iva?

kickingkay

just a quickie if anyone knows, im waiting fofr my appointment with a councilor at the mo and im wondering if they offer IVA or is it just DMP
its just if i can get an IVA at 50% hopefull i knowm then it would be so much better than paying this off for the next 12 yrs
thanks
klare x

gixxer6_2

if you are thinking about an iva this will cost you money in the first instance, they will also take into account any assests you have (although this doesnt usually include your house i think), a dmp is a better option in the first instance and 12yrs may seem like a long time, but look at it this way it is half the term of a mortgage, also as your situation improves you can pay more to your dmp and it will be paid off quicker

taplady

kickingkay wrote:

just a quickie if anyone knows, im waiting fofr my appointment with a councilor at the mo and im wondering if they offer IVA or is it just DMP
its just if i can get an IVA at 50% hopefull i knowm then it would be so much better than paying this off for the next 12 yrs
thanks
klare x

CCCS recommended an IVA for us but didn't arrange it themselves as it needs an insolvency practioner but they did recommend one to us and pass all the details on as well as arrange a phone appointment. The IVA will be paid off in about half the time a DMP will!

donnalove

if you own your own home then 75% of the equity is taken for the creditors.
this is either done by remortgaging in the 4th year, or if you cannot get a remortgage, you have to make payments upto the value of the equity

kickingkay

hi just read your reply thanks, but just to clarify, does that mean then eg
my equity is for aguments sake 40k- 25% =£30000 so we that be all i pay back in those 5 yrs or do i have to pay back 75% of my debts to
i know in the next 5 yrs i will be able to cough up max 20k in payments would i then need to remortgage the 30k as well sorry to be a pain
cheers klare xx

sparkle84

Yes you will have to pay back a set amount each month for five years and then remortage and pay a lump sum in the 4th year, I nearly went for an IVA but having given it some thought decided on a DMP which I can repay for 3/4 years and then decide to remortgage (if I want to) and pay off the outstanding debt,hopefully in full and final offers

donnalove

i think a dmp is a very good option, we are just completing our iva but it has been hard at times, also remember when in an iva if you fail to keep to the agreement they can automatically file for your bankruptcy.
you could do as sparkle say's witch makes better sense as you have more control and a dmp would probably not be so tight on your finance's.

mattp_3

Basically, if you have a large amount of equity, it may not be the best option to go for an IVA..........

Because it is very hard to prove to your creditors that you did not use "their" money to subsidise your mortgage - they will expect you to release some of the equity if you enter into an IVA - therefore, they normally request about 75% of the equity in the forth year of the arrangement (they normally expect you to remortgage to do this).

This may sound harsh, but those will a large amount of equity may not technically be insolvent and thus an IVA may not be suggested.

If there is only a small amount of equity, then the IVA can sometimes be extended to 6 years, so that you make an additional contribution to the creditors "in lieu" of the equity - that way there is no 4th year clause.

So depending on the amount of equity, it may be better to go with the DMP (if your case is assessed by CCCS/Payplan/NDL then they will guide you in the right direction anyway) but remember there are no guarantees that the interest and charges will be frozen with a DMP so it could drag on a little longer than the 12 years you quoted?

Good Luck
Matt