DMP v IVA

Justindebt

Could someone please explain to me the difference between a DMP and an IVA?

And in what circumstances a DMP would be advantageous?

Thank you.

morveryn

Briefly its:-
IVAs last for 5 years. They can be set for less but this isn't very common. You have to get your creditors to agree to it & you pay X amount into it for 5 years then thats it finished, no more debt. They are very strict & payments are often higher than in a DMP. If you don't keep to it you could be made bankrupt.

DMP can last for any number of years until the debt is paid but you pay what you can afford in monthly installments (with a bit of haggling with creditiors). No threat of bankruptcy.

CCCS are a good place to start for help They have lots of advice and are non judgemental.

Let_Robinson_Sing

Justindebt wrote:

Could someone please explain to me the difference between a DMP and an IVA?

And in what circumstances a DMP would be advantageous?

Thank you.

DMP - Debt Management Plan. Is paying off the whole of the debt at a small rate for example £13.35 per month until the debt is cleared, CCCS, CAB, Payplan and CAP provide free DMP'S and going through a DMP doesnt involve any court involvement.

IVA - Individual Voluntary Arrangement. Is a process through the courts when its decided what the creditors get for example for every £1 you owe the creditors get paid 35p to the £1 and the other 65p gets written off. IVA does cost as a IVA practioner needs to deal with it.

Depending on your situation then either can be advantageous post your SOA and what debts you have and let the DFW'S do their magic.

morveryn

Forgot to add -
DMPs should be free to set up & implement. IVA's can cost several thousand in fees to set up & manage.

Wonder_Girl

DMP - http://www.cccs.co.uk/faqs/debt.htm#debta

Bankruptcy - http://www.cccs.co.uk/faqs/bank.htm#banka

IVA - http://www.cccs.co.uk/faqs/iva.htm#ivaa