DMP before IVA?

keanfl

Sorry if this seems a dumb question.

We have been in contact with the CCCS and have been advised to go for an IVA (which scares me) or a DMP, my question is would it be better or worth going for the DMP before IVA?

DarkConvict

In order to do an IVA you need to have a steady stream of income to keep it running, because if you don't then the IVA will fail and your back where you started. IVA is also a form of insolvency (like bankruptcy). IVA does more damage to credit file than DMP (IVA > many defaults), however it lasts 6 years from the date you start, and is a single entry.

A DMP is basically you pay what you can afford, generally below min payments and as such you get defaults, whilst defaults should be placed within 6 months it can vary slightly. Obviously if a DMP is due to last over 6 years then an IVA so long as you can afford it will let you get on with life quicker.

Also careers, can be affected by IVA more so than defaults. Will you be able to keep your job whilst on an IVA?

Tixy

If you are fairly certain you will end up in an IVA eventually then I'm not aware of any benefits of doing a DMP for a while first, it would seem it will simply prolong the situation.

If you are thinking of an IVA (which you are right to be a bit nervous of as it does have serious implications) then I think its probably worth getting a second opinion on top of CCCS (not that I think CCCS don't give good advice - they certainly do).

Did they run through the advantages and disadvantages to both options?

NorthernLas

The link gives information as to the options you can use to pay off debts and the advantages and disadvantages of each. It is from national debtline.

http://www.nationaldebtline.co.uk/england_wales/page.php?page=35_options_for_paying_back_your_debts