Running out of time... DMP or IVA

poorgrad

Hi, thanks for the advice that I received last time about whether to go for a DMP or IVA.

However, I am now having second thoughts (again!). PayPlan are advising hubby and I to go with the IVA and CCCS are recommending that we go with a DMP. I'm going on maternity leave next month so CCCS have set our debt free date for 10 years + shocking I know.

I just wanted to know... has anyone really lost their house after an IVA? I'm just wondering if we can cope with this debt in a DMP and all the threats from creditors.

Hubby is so worried about creditors taking the house, going to court etc if we are NOT in an IVA - and I am worried about losing the house at the end if we ARE in an IVA (hope that makes sense). The debts currently stand at £42k. At the moment there is little to no equity in the property. But PayPlan have advised that if we cannot remortgage then we will definitely only have to extend the IVA for one more year.

Can anyone shed some light? I need to have this sorted before our little one arrives in a couple of weeks.

x

FoggyBrain_2

Hiya. A new (protocol compliant) IVA proposal will ask for the release of equity in the last year, if there is any. If ( as is nearly always the case) you cannot get a remortgage or secured loan, the IVA will be extended by 12 months. If the equity is less that £5k (85% LTV) they will usually move to get it excluded from the IVA and you will finish at the end of 5 years. When your proposal is drafted you will be sent a copy to agree -- read it thoroughly and these clauses will be in there.

poorgrad

Thanks FoggyBrain. That makes me feel a little bit better. I just want to get this sorted and make sure i've got all the right info.

Payplan_company_representative

Hi poorgrad.

Most of it has been explained by FoogyBrain, but I just wanted to add that with an IVA as long as you maintain your payments for the duration of the plan your house will be safe. I know this is a big worry for a lot of people!

Hope this helps put your mind at rest. If there is any more information that you need then speak to your advisor at Payplan or CCCS and they will be able to go through it all with you.

Lizzy.

poorgrad

Thanks, do you know how long it usually takes to set up an IVA? Ours seems to be taking ages and we can never seem to get hold of our case officer, I appreciate that they must be busy but we are desperate to know what is going on.

FoggyBrain_2

Mine took just under 8 weeks from first call to acceptance. 8 - 10 weeks seems about the norm, if everything goes smoothly.

poorgrad

Wow, I guess with an IVA it would take more time because it's official. I think we were hoping for a quick fix.

Payplan_company_representative

Hi poorgrad

due to the volume of information that is needed it can take a while to set up. We do usually say between 6 to 8 weeks. But when I was a case officer in that department I used to always say the quicker you send your information into us the quicker we can get it all together.

Lizzy