IVA v's DMP

Debt_Free_Chick

southernscouser wrote:

:eek: :eek: :eek: :eek: :eek:

You must make him listen! Tell him that Payplan and CCCS are charitys and won't charge him anything! Tell him he will be £5,000 better off! If he won't listen, kick it into him! Or come back here and tell me and I'll kick it in to him! :rotfl:

Just to clarify ... Payplan & CCCS won't charge for a DMP, but they do charge for IVAs. IVAs have to be supervised by professional Insolvency Practitioners, so you have to pay for their services.

And £5k for an IVA is not too bad - at the lower end of the scale.

HTH

Curlyz

That's somewhat reassuring to hear D-F-C.
I'm glad my son's credit will be shot to pieces for six years - it will stop him getting into more trouble!

I am really angry at the banks and credit cards for letting him have so much credit so I don't care if they don't get all their money back. It might teach them a lesson about giving so much credit to 21 year olds.
(Just as a foot note - he didn't fritter the money away on nothing - he is a partly qualified commercial pilot now - but where he is going to get the money to complete his training - g only knows. We're hoping an airline will take him on and finish his training)

taplady

There seems to be a lot of negativity towards IVA on this site
surely if they all failed why do CCCS and payplan recommend them in the first place?
I am undergoing an IVA at the moment at the recommendation of CCCS who so I am told are an excellent source of advice so I do find it strange that so many of you seem to think they are a bad idea.

Debt_Free_Chick

taplady wrote:

There seems to be a lot of negativity towards IVA on this site
surely if they all failed why do CCCS and payplan recommend them in the first place?
I am undergoing an IVA at the moment at the recommendation of CCCS who so I am told are an excellent source of advice so I do find it strange that so many of you seem to think they are a bad idea.

Many fail, but not all of them. And I think there are a number of different reasons for failure.

I think they're disliked for several reasons ... fees. £5k is about the minimum, but many people pay much, much more than this. This money that, on a DMP, would actually pay off more of the debts. So whilst your IVA might offer the creditors, say 60p in each £1, when you add the fees in you could be close to repaying the debts in full

They are also "binding" agreements and so you are stuck with the repayments at the agreed rate, for the agreed time. Sure, your IP might be able to renegotiate if you have good reason e.g. job loss (heaven forbid!) ... but you really have no flexibility.

Of course, a DMP is not "perfect" either ... and they can be much more time consuming to set up.

I think it's horses for courses If it's right for you and it works, that's great :j They're just not suitable for everyone.

Cheers

tinytears_2

Having read some replies to the IVA's I thought that I would join in.
Briefly : My husband and I got into a big hole about £65k. Not proud of it, very ashamed to put it mildly. Come to a head in August 2005.

Saw an advert on tv about the debt people. Took a deep breath and phoned. The people on the other end were fantastic. After alot of tears, they said they would help.

Yes, they did charge £4600, but we only dealt with one person and it got sorted out. No more nasty phone calls. In October over 75% of the crediters agreed and the courts paper were done. The repayments were only what we could afford and the companies can not change their minds. We only pay one payment each month and in 4.5years we are going to be debt free. We will never get a loan to repay another and another ever again. Paying by cash is wonderful and our adviser at the debt people stays with us for the full 5years. Always at the end of the phone, and they do checks on your accounts every 12months, just to make sure that you are doing ok, or need a little more help.

I am not proud of what I have just wrote, but if you asked me 10years ago about people with debt I would have said it was their fault. Now I know how easy it was. Debt is tooooo easy. All I would say is..don't put your head in the sand..face it.

Bunnyinthelights

Tinytears,
Just told my husband that I am 50k in personal unsecured debt.
It was the hardest thing I have ever done.
Im not sure if our marriage will survive (I truly hope so) and I can't believe I let it get to what it has.
Im so scared, but finally facing up to it all.
Thanks for you message, I know with time, I too can be debt free.
Bunny

headchef

Bunnyinthelights
Well done hun xxxxxx

Addicted2Chocolate

in my experience ( though skewed becuase i only see failed IVA's) they fail becuase the contributions take up all of the surplus : ie income less outgoings is amount paid. But they do not allow for unexpected expenditure and give no leeway. Maybe people underestimate their outgoings becuase they are so keen for IVA to be accepted.

Hitme

Addicted2Chocolate wrote:

in my experience ( though skewed becuase i only see failed IVA's) they fail becuase the contributions take up all of the surplus : ie income less outgoings is amount paid. But they do not allow for unexpected expenditure and give no leeway. Maybe people underestimate their outgoings becuase they are so keen for IVA to be accepted.

Just in the process of trying to set up an IVA and you've hit the nail on the head. We are struggling to just about get to the minimum 25p in the £ + the IP's fees which I believe to be around £7,000 ( is this too much - IP recommended by CCCS) Estimating outgoings seems so easy on paper but we've been trying to do it for a couple of months and the money just disappears - you've got to be so strict and when there's children involved it is very difficult and to do this over 5 years is not something I'm looking forward to. God only knows what would happen if interst rates were to rise rapidly !!! Still the other options don't look to good either DMP will take 18 years to pay off and Bankrupcy would mean losing the house and possibly my job in the financial sector.

tinytears_2

:T

Bunnyinthelights wrote:

Tinytears,
Just told my husband that I am 50k in personal unsecured debt.
It was the hardest thing I have ever done.
Im not sure if our marriage will survive (I truly hope so) and I can't believe I let it get to what it has.
Im so scared, but finally facing up to it all.
Thanks for you message, I know with time, I too can be debt free.
Bunny

Dear Bunnyinthelights

It will make a difference. Your marriage will get better, mine has. I too hid it from my husband. I was trying to be the strong one, but I was moody and was always covering my back. Once it all came out we learnt to talk again and because we do not have any money worries...the debt people have those, we are now looking forward to the future. On a credit front we will not be able to get credit, but that is not a bad thing, getting loads of credit got me in this mess in the first place. As far as buying a house our bank Abbey have told us that once we have paid the IVA off they will help us buy a house. So things are not so dark.

Be strong, honest and you will survive.

tinytears