IVA vs DMP

Missy-B_3

Hello
Just wanting a little bit of advice....
I had my appointment with CCCS on Monday and they said that they would recommend a DMP or IVA.
Trouble is - I don't know what to go for.

On the DMP they will take £311 per month and distribute to my debts, but this will take 10 years!!!!!!!!!!!!!


or
With and IVA it will take 5 years. Is there anyone out there with an IVA who can tell me a bit about their experience? I am worried that they will take more money than £311 and I am also worried that my employer will find out (through the payroll department or something) - can anyone help?

Thanks
Missy-B

kickingkay

Missy-B wrote:

Hello
Just wanting a little bit of advice....
I had my appointment with CCCS on Monday and they said that they would recommend a DMP or IVA.
Trouble is - I don't know what to go for.

On the DMP they will take £311 per month and distribute to my debts, but this will take 10 years!!!!!!!!!!!!!


or
With and IVA it will take 5 years. Is there anyone out there with an IVA who can tell me a bit about their experience? I am worried that they will take more money than £311 and I am also worried that my employer will find out (through the payroll department or something) - can anyone help?

Thanks
Missy-B

Hi Missy, if im right and things havent changed if all you can afford is £311 pm then thats all they will take, however a IVA last for 5 yrs max normally you pay a set amount (this is agreed at the onset it can not be less but can be more!) for 4/5 yrs. i assume that you have a property with equity? this is often required to be used against debt, as well i could be wrong with this in mind they try and negotiate a lower settlement amount below the outstanding debt, most creditors are happy to do this sorry if its not been much help but its what i remember from my investigation work
Klare, ps you are at more risk if you cannot meet these payments as it is a signed legal document the banks have a higher advantage over you if you lapse on payments (not too scare monger just inform you)

Missy-B_3

Thanks K. I don't own a property but that's what scares me that it is legal binding agreement. I'm worried in case something else happens (you never know!) and i can't make the payments.
I have had a read through some other posts actually just now and I'm put off slightly more now about IVA's. I think most people are on DMP's and so I might just go with that for the mo whilst I think about it a bit more.
The lady said that I can still do an IVA at a later date if I change my mind, however obviously I will have wasted time adn possibly money if I do.
It just feels a bit out of my comfort zone at the mo.
Thanks though.
MBx

Addicted2Chocolate

if you are in a IVA and you cant continue the payments the supervisor will make you bankrupt. but any creditor can make you bankrupt whilst you are in a IVA: DMP are not legally binding on the creditors.
What did CCCS say about bankruptcy option?

donnalove

well my advice would be to stick to the dmp or go bankrupt.

i have been in an iva and working on your above figures your debt is around 37-38000 which is the same as ours was. because you have no equity your dividend would be low ours was 35%, yours would be a bit lower than this perhaps about 32% which is credable in an iva.
but it will cost £9000 to run the iva your creditors would see about £9,500 out of all your payments, is it worth paying an ip that much? you would be better running the dmp for a few years then offering full and finals if you can.

iva's are very strict if you miss more than a couple of payments the ip can and will (if theres enough money in the pot) petition for your bankrupcty.
you have to send payslips every few months any overtime or bonus 50-75% has to go into the iva if you come into money this to has to go to iva.

I will say ours ran smoothly and we had a couple of hiccups in the beggining but it ran 4 1/2 years when we settled with equity from remortgage.

i'm not trying to scare you off but it does need very serious consideration.

Addicted2Chocolate

i agree with the points raised in this post. a lot of people assume an IVA is better than bankruptcy, but the IVA is so infleixble they fails after only 2 missed payments, and the calculation of payments (income less essential outgoings) leaves no leeway that so many people find they cannot keep up the paymetns as hoped.

donnalove wrote:

well my advice would be to stick to the dmp or go bankrupt.

i have been in an iva and working on your above figures your debt is around 37-38000 which is the same as ours was. because you have no equity your dividend would be low ours was 35%, yours would be a bit lower than this perhaps about 32% which is credable in an iva.
but it will cost £9000 to run the iva your creditors would see about £9,500 out of all your payments, is it worth paying an ip that much? you would be better running the dmp for a few years then offering full and finals if you can.

iva's are very strict if you miss more than a couple of payments the ip can and will (if theres enough money in the pot) petition for your bankrupcty.
you have to send payslips every few months any overtime or bonus 50-75% has to go into the iva if you come into money this to has to go to iva.

I will say ours ran smoothly and we had a couple of hiccups in the beggining but it ran 4 1/2 years when we settled with equity from remortgage.

i'm not trying to scare you off but it does need very serious consideration.

donnalove

yes iva's do tend to be a lot stricter than dmp's.

i will add that if we had more information 5 years ago then i think i would have opted for bankrupcty, i have been reading a lot from the experts on another forum and we wouldn't have neccessarily lost our house(which is what we were afraid of) as you have no property that wouldn't affect you.there is no stigma nowadays not many read the papers.