Advised to go for a DMP - would I be better with an IVA?

dafadau

I've another question on this. Regardless of whether I end up going for an IVA or DMP, I understand I need to swap bank accounts - I've got an old unused HSBC account and was planning to use this as I have no debts with them - is this advisable or should I go for a totally new account?

Really appreciating the continuing help!

Charco_2

So long as there is no outstanding debt to a bank it should be ok - any bank you owe money to might try to offset your debts against money you hold in a current or savings account - obviously you understand this or wouldn't be asking...

HSBC can be awkward (esp with IVAs) so you might be better trying a different bank. If you do it early enough, you might even be able to get an account with a few facilites (but not credit facility)

dafadau

Just spoken to Payplan.

They seemed quite a lot more organised and professional than CCCS, so am going to go along with them.

They didn't make a recommendation as such, but talked me through DMP, IVA, and Bankruptcy as options.

So, DMP £479.70 / month for 7 and 1/2 years or IVA at the same payment for 5 years. Makes is a no brainer really, but is of course very dependant on my creditors agreeing. As I owe mostly to Natwest and MBNA, it'll be up to both of those how this plays out. I'm a little worried it won't go through as Payplan took my current expenditure which includes things like Sky and Gym membership, both of which will be cancelled in the coming months as the contracts expire.

I guess it's cancelling Direct Debits and changing bank accounts time, but that can wait until the morning - got to come to terms with this.

dafadau

Forgot to add I don't want to go for BR as I was previously a Civil Servant, and may want to go back at some point.

Charco_2

No brainer indeed especially given the fact that 7.5 years probably means something closer to 10 by the time interest and charges are applied.

The five year IVA could become 6 years depending on circumstances but that's still less and at least there's more certainty in it.

dafadau

Yep, and even with any bonuses/payrises I get, I just can't see the debt being paid in less than 5 years anyway.

The biggest problem I see is if I wanted to move to a different rented property...

ontheroad_2

dafadau wrote: »

Forgot to add I don't want to go for BR as I was previously a Civil Servant, and may want to go back at some point.

I'm a civil servant, there is no bar to my employment if I go br - I just have to tell my manager, and not be in a job role which involves handling money. Is there something on a civil servant's job application nowadays which asks if you are br?

dafadau

ontheroad wrote: »

I'm a civil servant, there is no bar to my employment if I go br - I just have to tell my manager, and not be in a job role which involves handling money. Is there something on a civil servant's job application nowadays which asks if you are br?

It depends on what Dept. you work for - it would be an issue for me.

dafadau

Adding a rough SOA that I came up with for Payplan (without my current debts - seems pointless now)

Statement of Affairs and Personal Balance Sheet

Monthly Income Details
Monthly income after tax................ 2566
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 2566

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 1200
Management charge (leasehold property).. 0
Council tax............................. 130
Electricity............................. 35
Gas..................................... 40
Oil..................................... 0
Water rates............................. 35
Telephone (land line)................... 11
Mobile phone............................ 20
TV Licence.............................. 15
Satellite/Cable TV...................... 31
Internet Services....................... 30
Groceries etc. ......................... 160
Clothing................................ 20
Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 250
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 9
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 40
Holiday................................. 0
Emergency fund.......................... 0
Gym..................................... 50
Total monthly expenses.................. 2076


Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 0

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
Total unsecured debts..........0.........0.........-


Monthly Budget Summary
Total monthly income.................... 2,566
Expenses (including HP & secured debts). 2,076
Available for debt repayments........... 490
Monthly UNsecured debt repayments....... 0
Amount left after debt repayments....... 490

Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -0
Total Unsecured debt.................... -0
Net Assets.............................. 0

Created using the SOA calculator at www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission, using Firefox browser.

dafadau

Have had a further thought - This month I'll likely be paid for 3 months on call allowance ~£600 before tax.

I'll likely get £200 (before tax) a month, though this can vary if I'm not required to be on call.