IVA about to fail, shall I move to DMP...?

Jam_Buttie

My IVA which I entered into in March 2007 is getting tricky. My surplus income back then was £302, so this is what I was paying into the IVA. Now, 2 years later my surplus is only about 80 quid and they IVA IP say that isn't enough to continue with an IVA and are recommending me going onto a DMP.

what are the good and bad bits about debt management programs?

Deep_In_Debt

Hi and welcome

Who is your IVA with?

Have you sought advice from one of the debt charities - CCCS, Payplan or CAB? They will advise in your interests only.

I'm in a dmp as an IVA was not suitable for me (no matter how many times the FEE charging companies told me it was!) Neither you nor creditors are legally bound in a dmp and they can take court action at any time but if courts see that you are making an effort to pay your debts they tend to look favourably upon you.

In a dmp ALL (if you use one of the companies above) your money goes to paying your debts and not to an IP so your creditors see all of their money but over a longer period but this can be reduced easily.

As I mentioned before, please seek advice from one of the non fee charging providers.

RAS

Hi

You need to talk urgently to one of the debt charities.

The standard route out of a failed IVA is bankruptcy. If your "IVA" provider is suggesting a DMP, then it is quire possible that you are not in an IVA at all.

Can you get hold of your terms and conditions and can you advise what precentage pay back your creditors agreed to?

Jam_Buttie

I am in an IVA. It's with Freeman Jones who have been really good with me to be honest...

My creditors were getting back about 32p in the £ of the 28,000 I owed.

My IP suggested that I could enter into an DMP with their sister company or as I pointed out myself I could go to the CAB and do a payment plan...

RAS

You definately need to talk to CCCS or NDL in the morning.

Details here http://www.moneysavingexpert.com/loans/debt-help-plan#help