Have been recommended either a DMP or an IVA.....

Phoenix27_2

Hi all,

Scared to post here but I think I am about to apply for an IVA through payplan, although have been reading around and I don't know whether to bother as it seems like it won't go through. I have been recommended a DMP to but it is likely to take 14yrs to repay.

My payment is likely to be 117 per month and it would be 21% repayed. From what I have read off the internet it would need to be 200 Per month and at least 25%.

So I really don't want to go through all the stress for nothing and in that case would bankruptcy be my only option. Although I wasn't recommended this.

I went via payplan, and have said I need this weekend to think about it.

Thanks in advance for any thoughts.

Scared and ashamed.

debtinfo

Hi phoenix, there are no limits on what the IVA can be. All that needs to happen is that the creditors agree, who gave the recomendation in the first place, if it was payplan themselves then they must be pretty sure that they can get it through.

As long as you are not paying anything upfront there is no harm in making the enquiries, just make sure that you dont get pushed up to a point where it is unaffordable. Be prepared to walk away if you are not happy, remember you will need to stick to it for the next 5 years

Phoenix27_2

Thanks so much, I have been reading these forums for weeks and weeks.

I am by no means proud of the situation I have found myself in but need to manage it the best I can now, and it feels like my life has been blighted for so long.

I went via payplan and they suggested either the DMP or the IVA. I am just struggling to justify which is the better way to go. It seems like IVA because at least it is 5yrs and I have a secure (as far as I know) wage for that time.

I feel like my budget is realistic when I discussed it and basically at the moment my repayments are aprox 460 per month but according to everything I can only afford 117.

Excuse my mumbo jumbo, just confused at the moment.

debtinfo

Unfortunatley we cannot tell you which way to go, it is a decision that you have to make yourself. (afterall it is you who will be stuck with the consequences in the future) just make sure that you are fully informed before making a decision and ask about anything you are not sure about

Ivoryfalcon

Debtinfo is correct, only you can make the decision, you need to make it with guidance from your IP and they should ensure that it is realistic and achievable.

I have had an IVA for 4Yrs 8 Months, it was not always easy but with planning it is achievable. 14 Years on a DMP is a ridiculous period of time for anyone to contemplate, is it achievable?? I couldn't. There are alternatives, Bankruptcy or DRO, it all depends on your circumstances, if you own your house or maybe your job is at risk if you were to take these paths. Speak to as many people as possible first and go with someone you are comfortable with.

Do not contemplate anyone who wants to charge you beforehand, there are many IP's or firms that will do all this for free until it's all agreed.

Best wishes whichever way you go

Max_1066

You're def doing the right thing by talking about this and gathering information, I remember being there and its a stressful time. There's some great information and good people on this forum.

I started off with a DMP and like you, would have taken a lifetime to repay. It was a quick and easy solution however its not a real solution (in my opinion). I realised this and so started to explore the other options. I couldn't consider BR as I'm a company director and also own a property. The IVA was the only way to go for me. With hindsight I shouldn't have done the DMP as it just wasted time and money.

Good luck with your decision making.