DMP v IVA

westieangel

we're currently needing to chose which of these to go with(payplan referred by NDL).
what are ppls experiences with these? do companies tend to change the terms of a DMP part way through, do they tend to freeze interests & charges or keep them piling up?

IVA's: we have negative equity on our house but am concerned about the house (no mortgage or other priority arrears)

(so far despite sending breathing space letters & letters saying we're arranging a pay plan most seem to have ignored both letters & are continuing to phone, write & add charges, we've sent token payments too)

thanks for any info x

Pott5y

WestieAngel,

I am on a DMP with Payplan (6 years) and I have to say that I have been very pleased in general with the way they are treating me. I know that some will advise that you can do everything that Payplan do yourself but it will depend on how confident and organised you are. My feeling was that at least by using an organisation such as Payplan you might be taken a little more seriously.

All of my creditors have frozen their charges and interest although it does not happen immediately. I think they like to see you are serious and really in trouble before they will stop their charges. But just keep up the token payments. Also some creditors will be nicer than others and some can even be a bit nasty and underhand. Do not let them bully you! Just ignore them and do all your correspondence in writing. Do not agree anything on the phone and tell the creditors you are talking to Payplan.

Unfortunately I cannot comment on an IVA as I decided it was not the best option for me. The only thing I know is that they are legally binding and it can be more difficult re-negotiating payments if your circumstances change.

The best thing is to do whatever you feel most comfortable with and take all the advise offered on these forums and use what you can.

It may seem like a hard slog for a while but I can assure you that eventually things do sort themselves out and it will all be worth the hard work.

Good luck with it all!

westieangel

thanks for your reply, the main reason we're going with a company is that they know what they're doing & do this as their job, so i agree that the companies are more likely to listen to them than us, so far even after sending breathing space letters & the one letting them know we're looking @ options we've had some nasty letters back, which suggests they're ignoring them at the moment.
the reason i was asking on here was the woman at PP said sometimes the companies change their minds & still get you legally, cos before that we'd decided to go DMP rather than IVA (just feels more comfortable for us). anyway will do some more reading, anyway whatever we do i already feel better after talking to national debtline, they've been so helpful.
glad you're doing well x

jalebi

Pott5y wrote: »

Unfortunately I cannot comment on an IVA as I decided it was not the best option for me. The only thing I know is that they are legally binding and it can be more difficult re-negotiating payments if your circumstances change.

If you are leaning towards an IVA, make sure you take into consideration changes in your circumstances. I know it isn't possible to be 100%, but you want to be as sure as you can that you will be able to stick to payments in an IVA. If you can't, pott5y is right in that it will be hard to get payments reduced - then if your IVA fails, your debt will not have decreased by as much as you paid into the IVA because you had money going towards a fee.

I'm probably simplifying things a bit too much, but I look at DMP vs IVA as deciding whether or not you a risk taker. If you think about it, you are presented with a choice between making affordable monthly payments until all your debt is cleared, or trying to get some of the debt written off by taking the risk that you'll be able to commit to making a certain level of monthly payment for five years.

Pott5y wrote: »

The best thing is to do whatever you feel most comfortable with and take all the advise offered on these forums and use what you can.

Couldn't agree more - your best placed to decide how to move forward with things. Good luck with whatever you do.

bottleofred

Hi westieangel,

Regarding the phone calls, tell the creditors you only wish to be contacted by telephone and then send the letter below. I hope you get sorted soon.

Dear Sirs,

Account No: XXXXXXXX

I am writing in relation to the quantity and frequency of telephone calls that I have received from your company, which I deem to be personally harassing. I have verbally requested that these stop, but I am still receiving calls and I now require all further correspondence from your company to be made in writing only. I am of the view that your continued harassment of me by telephone puts you in breach of Section 40 of the Administration of Justice Act 1970, and the Protection from Harassment Act 1997.

If you continue to harass me by telephone, you will also be in breach of the Communications Act (2003) s.127 and I will report you to OFCOM, Trading Standards and The Office of Fair Trading, meaning that you will be liable to a substantial fine. Be advised that any further telephone calls from your company may be recorded and used in evidence and I expect this harassment to cease immediately.

Yours faithfully

Nargleblast

DMP v IVA - depends on how much your debt is and whether you have property to protect. If you have a large amount of debt then it could take 10-15 years or more to pay off with a DMP -assuming all creditors freeze interest and charges, which some don't! With an IVA it is all done and dusted in 5 years, you pay as much as it is agreed you can afford, and the remainder of the debt is wiped out. You will be expected to see if you can release any equity in the house at the end of the term to finish it off. It means that your home is safe, which it might not be in the case of bankruptcy.
IVAs are rubber stamped by the county court, miss 3 payments and it fails and the creditors are on your back again. While an IVA is running creditors are not allowed to hassle you in any way, whereas there is no such safeguard with a DMP. DMPs are ok if you can see yourself being able to clear all the debts within a few years, but you still get hassle from some creditors.

Only you can decide what is right for you, and I suggest you research both IVAs and DMPs carefully before committing to anything. The Bankruptcy and IVA forum will give you more info on IVAs, and Payplan should be able to answer your questions on DMPs.

Good luck with what you decide.

westieangel

hi have had a totally hectic week so not posted before now but just wanted to say thanks to those of you who replied, we've decided to stick with our original plan of a DMP.
good luck to all in similar situations x

Pott5y

Westieangel,

Good luck with your DMP. I am sure you will have made the right decision!!