Length of debt management plan

mike1976_2

Hi,

I have been looking at IVA's but have just seen a debt management plan.

Are you more likely to be accepted for a debt management plan than an iva.

With a debt management plan, how long does it last. 25 years?

Would this mean that you are unable to get credit whilst in the plan?

If you have an iva or debt management how are you affected in terms of signing up for mobile phone contracts, sky and broadband etc. They are in effect credit.

Cheers
Mike

southernscouser

Hi Mike,

OK I'll try and answer these to the best of my knowledge. :rolleyes:

With an IVA all your creditors need to agree to a monthly payment. If they don't (or a percentage don't) then no IVA will be entered into which does make it harder to get into than a DMP!

With a DMP anyone can enter into one even if the creditors don't accept the terms. Quite often they come round after a few months when they realise they aren't going to get what they want and freeze interest, charges, that sort of thing!

A DMP lasts as long as it takes to get out of debt. I don't think their is a time limit!

By entering into a DMP or IVA I'm 99% certain that all your creditors will issue defaults against you. These will remain on your credit file for 6 years from the date they are issued. This will make obtaining credit very difficult but credit is the last thing you really want if you have debts! :eek:

I'm not sure whether you are credit checked for broadband! Pretty sure I wasn't! Mobile phone I know you are. Not sure on SKY either! :think:

CLAPTON

post a Statement of Affairs and people will be able to advise.

the questions you ask depend upon your circumstances ..there are no general answers.