DMP v IVA?

bigmouse

Can Anyone Advise As To Wether I Should Go Ahead With An Iva Or A Dmp. I Owe £31k And Gross £20.5k/annum (basic). My Monthly Debt Payments Are £580 Of Which £200 Is The Minimum On My 2 C/cards And Without Paying Any Of My £1350 Overdraft. How Long To Pay Off A Dmp And How Long For Iva? Will My Debt Affect My Wife As Everything Is In My Name?
DO ANY REGULAR/IRREGULAR OVERTIME/BONUSES NEED TO BE PAID OUT TO HELP OR CAN THINGS IKE THESE BE USED TO SAVE?

mattp_3

It is difficult to tell which one is more suitable without knowing your details. For example, how much available surplus do you have once you have accounted for your priority payments (not including your unsecured debt). Do you have a property etc.

You could always call one of the free debt advice/management companies such as Payplan and have a chat with them, let them look at your details and they can tell you which is your best option.

https://www.payplan.com
https://www.nationaldebtline.co.uk

ceegee

I'm sure I read in the Daily Mail the other day that failing to keep up payments with an IVA can lead to you being made bankrupt. I believe this is not the case with a DMP.

Use the sites posted by mattp for further info.

taplady

It is true that you can be made bankrupt if you fail to keep up with payments on an IVA.It takes 5 years to pay off and you have to pay half of any bonus or overtime into the IVA. I think you have to remortgage after 4 years and pay some equity into the IVA but I'm not 100% on that but I'm sure others here will fill you in .as said above seek proper advice.

davels

I think that whether your in a DMP or an IVA, the risk of being made bankrupt is always there. It's a last case scenario - and it's unlikely to happen if your in employment getting a salary of £20.5k. If you were to lose your job - and you don't have any major assets like a house, then bankrupcy may seem not such a distant possibility.

And just to say - don't take to heart everything you read in The Mail! It's a paper full of anti-government propaganda and often they aggerate the truth somewhat.

I have an arrangement with PayPlan currently - in the initial chats you have with them they'll suggest options to you, whether that be a DMP or an IVA. I strongly suspect that in your situation, a DMP will suffice.

Good luck - let us know if we can help anymore.

-davels-

Give_In

I am new to this and would also like to know the difference between a DMP and an IVA, i have been told that i can be debt free with an IVA in 3 years, however a DMP would take 6 years. this is based on 25k.
Any comments?

Give_In

I was also informed that with an IVA after 3 years (in Scotland), 5 years (in England), different laws, that remaining debts would be written off and show on your credit file as debt satisfied. It seems unrealistic, I wondered if anyone had already entered into any of these? If so how do they work? I am also interested in whether my husbands credit score would be affected, all debts are in my name only, but we do have a joint mortgage with no arrears or defaults on the mortgage.

Give_In

mattp wrote:

It is difficult to tell which one is more suitable without knowing your details. For example, how much available surplus do you have once you have accounted for your priority payments (not including your unsecured debt). Do you have a property etc.

You could always call one of the free debt advice/management companies such as Payplan and have a chat with them, let them look at your details and they can tell you which is your best option.

https://www.payplan.com
https://www.nationaldebtline.co.uk

I should have read this first! I have logged on and now realise that the DMP is the best starting point. Would anyone know which is the easiest to deal with payplan or national debtline?
Thanks for the information its very helpful

Give_In

How is it going Bigmouse, seem to have the same issues as you here, good luck with yours, it would be good to hear how you get on. I am studying a DMP option, I think Payplan looks a good option. My husband is not fully aware of my situation, so its very stressful.

Nicky_3

Payplan is a good option Give In. National Debtline are good as well..lol National Debtline actually refer to Payplan as well, but both are good helpful companies.

All you need to do is give some information regarding your current circumstances and you will be given advice as to what is the best option for you. Inform them that your husband is not aware and they will never speak to him about your circumstances.

Talking about your hubby not being aware, is that something that you can fix? Are you able to be open and tell your hubby about the situation, at least that way, it will relieve alot of the stress you are probably feeling at the moment.

Give_In

Thanks Nicky, hubby is a super douper money manager! He will not pay interest on anything, if he is charged in error, he gets it back. He knows by the minute to the exact penny how much he has in his accounts. I work of a housekeeping budget and a small part time wage. I am sure I was born with a defect that disables me from worrying about money or being able to manage it. I know this sounds irresponsible, but I am otherwise a caring person who always helps others and do not prioritise material aspects. He knows I am having to budget these days but does not realise the extent of debt on cards, I am only now learning about this, previously I had direct debits to pay minimum amounts and thought it would sort itself eventually.....but of course.....this is a learning process. I am not ready for a domestic yet, maybe when I come to terms with it all myself, it will be easier.
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