dmps and ivas

claire1011

can someone explain the difference between an iva and dmp please
thanks

10past6

Hi Claire

I thought I noticed you mention IVA on your other thread, basically, I doubt an IVA woould be applicable to you, one reason being I don't think you have any assetts, property for example.

IVA's are only applicable to a very, very, small % of people, this site has numerous threads from people mis sold an IVA, do be very careful about entering into one, the difference being, an IVA is legally binding, a DMP is not, being on a DMP does not prevent creditors taking legal action / charging interest on your account.

10past6

You may find this helpful

claire1011

thank you! this all very new and very very frightening. any advice is gratefully received!

claire1011

i cant seem to open the link you sent

Deep_In_Debt

In an IVA, you will probably find that your creditors receive very little of your money, if anything, for the first year or so as most or all of what you are paying goes to the IP and if an IVA fails it could result in bankruptcy. On a dmp, your money will go to creditors immediately if you use one of the non-fee providers such as CCCS, CAB and Payplan

10past6

claire1011 wrote: »

i cant seem to open the link you sent

I just tried it, it opened for me.

You also need to bear in mind, an IVA is very profitable for those setting it up, even Payplan / CCCS, usually, the first 6 months payments will go towards the fee, only after that does the IVA kick in.

This is one reason why so many IVAs have been mis sold.

Why not think about setting up a DMP, see how it runs, this will allow you some breathing space to consider you next move, do consider an IVA very, very, seriously before commiting yourself.