new to a IVA

willow70_2

myself and partner have just entered into a iva as we were deparate with how much are debts were getting to us. i am just very wary of this we have been in a dmp for 5years and basically still owe the same amount however the iva company bsaid we will be free in 5 years is that right and anyone got any advice

thanks

Choo_Choo_4

Willow - provided you maintain your monthly IVA contribution and do not default on that (unless due to circumstances beyond your control and you keep your IP informed) that would be the case indeed.

You should make 60 monthly payments (5 yrs) in a IVA and then the remainder of your unsecured debt would be written off.
Even if your circumstances were to change and you were unable to pay the same amount in an IVA provided you keep in touch with your IP and explain the reasons for this then they can put forward a variation to your creditors (i.e. due to wage decrease, loss of child benefit ... )

DMP is a solution in it's own right but usually not a very good long term solution as in many instances charges / fees / interest is not frozen therefore the amount of debt is continually rising ...
IVA does guarantee that the all charges / interest / fees are frozen from when the IVA is accepted and it is a legally binding arrangement unlike the INFORMAL DMP.


Good Luck Willow