Query re budget for DMP and IVA

kingston_2730

Hi can anyone tell me is the budget for a DMP and IVA similar or is it more strict for an IVA?

Tixy

It is often a little more strict for an IVA.
In fact an IVA seems to be the tightest of all, more so than either a DMP or bankruptcy which I always think seems odd.

RAS

As a rule the IVA budget is the leanest of them all and long -term alterations require the creditors approval whereas the DMP will be agreed with the debt charity.

kingston_2730

We are on a tracker mortgage which is at a really low rate at present. Can anyone tell me when it goes up would we be able to change DMP payments if we do enter into a DMP and also how difficult this would be if we ended up on an IVA?

Tixy

On a DMP yes certainly you could change it, its normal to change a DMP payment throughout the course of the DMP, usually its reviewed annually but if something significant changes in the meantime (up or down) you can let your provider know.

On an IVA its possble but not easy, as basically your creditors would have to agree again to the new lowered payment.

Have you had some advice from one of the debt advice charities kingston?

RAS

You would certaily be able to reduce the debt payments when your mortgage payments increased on a DMP.

Your creditors would decide whether or not to agree to a reduction if you are on an IVA.