IVA or Debt Management program?

candy-magnet

Hey all,

I have been shopping around for either an IVA or Debt management program and so far DFH seem to be offering me the best and most affordable deal. I have heard a lot of conflicting information after speaking to a lot of different company's, does anyone know if you can set up an IVA as a couple as I am off sick and on benefits and my partner is working.

We owe approx £26,000 and earn around £1600 per month, what is the best solution?

Thanks

10past6

Hello Candy

Well done

OK, let me ask, do you have any assets, one of the criteria’s for IVA the applicant must have assets.

Also, take a look here, it’s the master’s (MSE) opinion on IVA

ONE_FOR_THE_VINE

Hi,

Both CCCS and Payplan are registered charities and offer free advice for people with debt. They should be able to point you in the right direction though I understand they can be a bit biased towards DMPs. They will provide DMP for free!

Please be aware that the companies promoting IVAs as a wonder solution stand to make a LOT of money... many people have taken out IVAs who would have been better off going bankrupt for example.

Best of luck!

tigerfeet2006

Contact CCCS and go through your opttions with them. If an IVA is suitable they will tell you and get one organised for you. They have to charge for this as the IP has to be paid but they won't reccomend it unless it is really suitable. If it is not suitable they will arrange a DMP for you and will not charge you any fee's for it.

So give them a ring.

VINE, Payplan are NOT a charity they are a commercial organisation. Though they are one of the better ones and will offer a free DMP and a lot of people on here have their DMP's with them.

candy-magnet

Cheers everyone for the tips, I have contacted Payplan, they are getting back to me about IVA as they are not sure I could get it, I owe a lot to HSBC and they said HSBC require 40%.
I will also contact CCCS and see what they say.

I don't really want to go bankrupt as I have a law degree.

So it can be done with your partner as a couple right??

candy-magnet

10past6 wrote: »

Hello Candy

Well done

OK, let me ask, do you have any assets, one of the criteria’s for IVA the applicant must have assets.

Also, take a look here, it’s the master’s (MSE) opinion on IVA

The only asset I have is my car which is worth about £2000 / £2500 max....!

Deep_In_Debt

Hi
If you have no assets such as a house to protect then I think an IVA would not be suitable for you. Also, you are tied in for 5 years and a lot could happen in 5 years such as job loss which could result in failure of your IVA and ultimately bankruptcy.

I strongly suggest you contact CCCS who are a charity and will only advise an IVA if it is suitable for you.

Good luck.

mk1982

I am in a similar predicament although I was turned down for an IVA. A Debt management plan by CCCS was my other option but will take 8 years to complete.

What are the pros and cons of a Debt Management plan? Obviously the Pros are I am left with more cash at the end of the month but more imporantly what about the cons? they said that a note will be placed on my credit file but apart from that there should be no cons. Just the length is a bit of a drag though.

J

Deep_In_Debt

Hi
the cons are that your credit file will be trashed for the length of your dmp and for 6 years after your last payment. 8 years may seem a long time at the moment but there may be times when you can pay more (such as payrises at work) therefore reducing the term. When I first started on my dmp in January, I was told it would take 9 years to clear, but I've now managed to reduce it to 6 years in a few months.

Creditors are not legally bound to accept the dmp and can take you to court at any time. They don't have to freeze interest and if they do, they can lump it back on at any time. You can still get calls and contact from creditors but they are easy to deal with after a while.

However, a dmp is the best thing I've done for a long time. I was nearly mis-sold an IVA - thank god I didn't go for it.

Good luck.

HHH_2

Please dont take fish's advice it is a link to a FEE PAYING company CCCS are best plced to advise you as they are a charity so it costs you nothing and they're brilliant!

10past6

candy-magnet wrote: »

The only asset I have is my car which is worth about £2000 / £2500 max....!

If you have no assets, then as already mentioned, it’s highly unlikely an IVA would be right for you, there are numerous threads on this board from members who have been miss sold an IVA, don’t be another statistic