DMP v's IVA

MUM40

currently been on a DMP for the last 12 months and now advised to go on a IVA.

okay so questions that i need to think of

if a go IVA for 5 years will i then have to remortgage to pay what is still outstanding

how long will this stay on our file

if i stay on a DMP can i just increase the payments back every month, so eventually i will be back to normal.

i think that i could possibly pay all debts at correct monthy amounts, if i cut down elsewere.

decisions decisions what will i do

debtinfo

Hi, to answer your questions

IVA's are an agreement between you and your creditors, they are all diferent, although there are general guidelines about what should be in there, you need to check any agreeement carefully to see what is in your particular one before signing.

It is common that if yu have a property that you will be asked to release most of the equity in it in the last year of the agreement. People are finding that difficult at the moment and if you cant most agreements allow for you to pay an extra year of payments instead, but who knows where the mortgage market will be in 5 years.

It will stay on your file for 6 years, but if anyone ever after asks you directly if you have been in an IVA on a credit agreement then you will have to say yes.

You can stay in the DMP and increase payments, are you paying interest, to pay it off finally it is likely that they will add interest at some point, and it will last indefinitly until everything is paid off including all interest and charges. It is likely that you will have already put defaults on your credit file

How long would it take you to pay it at the level you think you can pay, that may decide it for you all things considered

dancingfairy

I think you may have misunderstood an IVA slightly. You do not necessarily pay all your debts off in 5 years - you pay what you can, what is affordable and what is agreed with your creditors - so you may end up paying them back 30p in the pound or whatever. At the end of the term providing you have stuck to your side of the agreement you are released from obligations regarding your debts -ie you are debt free and don't owe any more.
Generally the agreement includes an agreement that you will remortgage at a certain point to release equity and give it to the creditors - like Charco said though - most people will not be able to re-mortgage at the moment at are showing !!!!!! they have tried their best and offering an extra years of payments to make up what they can. You need to make sure you IVA says you will attempt to remortgage at the right point if you can and not you promise no matter what to pay 30k (or whatever the equity is now)- you do not know how much equity you will have in 5 years time so don't promise a sepcific sum no matter what or you may be alittle stuck.
I hope that clarifies a little.
df