Help...considering moving from a DMP to IVA!?

adsteps

Hi,

Currently on a DMP for 12 months. Owe about £21,000 and pay £340 per month.

After a potential change in income and reading around it seems possible that moving to an IVA may be better.

I have 5 yrs and 3 months left if I stick to the DMP and the odd company keeps adding charges and interest ad hoc.

However, If i swapped to an IVA, this would also be for 5 years but they payment may be more like £200 a month plus they would have to agree to stop the interest etc consistently?

Does anyone know any more about this? I thought I was all sorted on a DMP but am now sick of companies like Lloyds adding charges back on without informing me.

Please help...

PS do you need to prove your income/outgoings with an IVA?

Tixy

Who are you doing your DMP with? did they originally advise you on the different options? was an IVA considered at that time? have you spoken to them regarding changing to an IVA?

Your payments for an IVA would be based on what you could afford, so if you can afford £340 for a dmp you could afford £340 for an IVA.

Do you own a house? do you have equity in the house?

adsteps

Hi I'm with CCCS and an IVA was never discussed originally.

I don't have a house or any assets.

I spoke to them asking about a change to an IVA but they said the creditors were unlikely to accept?

What if my income goes down?

mozzyc

Hi

If you think that your income might go down, don't go on a IVA. It is a legally binding agreement, and the rate you agree, is the rate you have to stick to throughout. Otherwise there could be consequences.

RAS

if you income goes down in a DMP or the boiler breaks, you can re-negoitiate the deal.

On an IVA, you might get a short payment holiday or an extension but unless your income increased quickly, the IVA would fail.

adsteps

I suppose what I'm trying to say, is to fit the budget so that it goes into the IVA eligibility bracket, ie my salary has gone down a little, not much, and could add a small amount onto bills to make me have more like £230 a month left over, meaning on the IVA my payment would go down to £230 from £340 on the DMP.

I'm a nurse so my income is pretty much guaranteed and instead of paying £340 a month for 5 years 3 months on the DMP, I would then be paying £230 a month over 5 years on the IVA and still be clear of debts.

Tixy

I would speak to CCCS and get their advice - they may well say that your creditors will be unlikely to agree to an IVA, or they may agree its a possible option for you.

Are you aware that if you go into an IVA your IP will charge several thousand pounds which will mean your creditors will get substantially less of their money back. Hence why I think they may be more likely to refuse, so that you stay on the DMP and pay back the full amount (even if it takes a little longer for them to get their money)

Have you read this IVA guide? http://www.moneysavingexpert.com/loans/pdf-iva-guide.pdf

RAS

Are you also aware that an IVA is an act of insolvency that you will have to declare for the rest of your life if you are asked, whereas a DMP falls off your credit record and dissappears for ever?