DMPs and IVAs - lump sum pay offs

lulaloo

Hi everyone

If you enter into a DMP or IVA are you left with the bare minimum to live off every month?

Also, If you are in a DMP, can you pay a lump sum off your balance at one point?

The reason I ask is because I am due a lump sum in February of next year which will enable me to pay off the majority of my debt. I wont be able to pay it all off, but what is left I will be able to manage.

Thanks for any help

Lula xx

Useless_with_wonga

In that case as it is only 3 Months away i should deal with your creditors directly advise them of your situation and intentions and negotiate reduced payments for Nov(?) Dec, Jan and Feb(?)
No point in entering into either a DMP or an IVA if you only have a short term problem.
What ever is left after yor lump sum pay off attack it in earnest and get rid ASAP.
I think the amount of people on the DFW board is testament to how easy it is to fall into the unmanagable debt trap.
I certainly never want credit again although i have slightly longer than 3 Months to wait before i'm anywhere near being debt free or having my debt at a level that it should never have passed.

lulaloo

The lump sum is a commission I am being paid from work - it is fairly stable but does depend on another company signing a contract agreement that has not yet been signed.
From past experience and the current economic climate, I don't really want to rely on this coming through on an exact date.
My question, really, is; if I start a DMP and get this lump sum, whenever it may be, can I use the lump sum to pay off some of the DMP and reduce the time it takes for me to pay it back?

Thanks

Lula

Useless_with_wonga

If you mean paying a lump sum into the DMP and allowing the DMP to spread it out pro rata among your creditors then Yes of course that is possible. However i should hang fire until they have stopped adding charges and interest to your accounts this sometimes takes a while. I can't see the point in paying in a lump sum if it is having no real impact on your balance i.e. losing it to charges eg "Thanks for your payment of £10 and by the way we have added £20 onto your account in admin fees etc etc etc" See what i mean?

lulaloo

I see what you mean. I think I'm just too excited that I've actually had the courage to actually make a start on sorting all my debt out that I'm not thinking straight!

I'm off to finalise my DMP now then. Thanks for you help UWW x