DMP, IVA or BR

mbs1

Im waiting to hear from the CCCS with a telephone interview on Fri.

Iv been reading the boards to get my head around which one would be suited to me or not...

Im 35k in debt with £200 spare per month. Am i right in saying an IVA will last no longer than 5 years but is normally for people who have property to save.

I only rent so would a DMP be better, but would take much much longer to pay off, over 10 years i think.

Also am i right in saying, any extra Overtime that i get when availbe, 50% has to go the my creditors?

Thanks in advance

Deep_In_Debt

If you don't have property to protect, then an IVA is not suitable for you.

A DMP is much more flexible and with hard work you can reduce the term of it. When I started mine in January, I was told it would take me 9 years to clear my debts. I've managed to reduce that to just under 6 years in 11 months. If you get overtime whilst in a DMP, this is taken into account if it is regular and your payments will reflect this. However, if it is not a regular amount, it is unlikely that it will be included in the DMP as creditors can get nasty if they receive more one month and less another - it just opens a can of worms. I've been there!

DMP's are far more flexible as in an IVA you are stripped back to the bare minimum and remember a lot can happen in 5 years. If an IVA fails, they often end in BR anyway, after having had to pay thousands in fees to the IVA provider and your creditors seeing nothing.

Good luck with whatever you decide.

mbs1

hmmm... Thanks for the reply

I was hoping to stick to a DMP as i heard they were more flexible.

Only time will tell i suppose.

Thanks again

skintandscared_2

DMPs ARE more flexible and a lot less stringent than IVAs. If you don't have property it's a lot less likely that an IVA will be accepted by your creditors as there's nothing to refinance in year 4. But if your only other option was bankrupty, then an IVA could mean you don't lose your home.

I don't have a property but decided to go for a DMP as I didn't honestly think an IVA would be accepted by 75% of my debt, and I would have paid a lot of money to an administrator for nothing.

I have come to the decision that if creditors refuse to freeze my interest to the point where my monthly payments are having no affect on my debt, I will go bankrupt. It's their choice. They either get all they are owed over a period of time, or the lot gets written off with bankruptcy. I have no property or assets to lose.