DMP over IVA? What are the benefits?

Devon_Sailor

Hi all,

Currently torn between an IVA and DMP - and a decision needs to be made, because at the moment all the umm-ing and ahh-ing is driving me mad lol.

In stark figures, the IVA seems a no-brainer, debt free after 5 years rather than the 7ish i have been quoted by PP on my debt of £66k (£761p/m). HOWEVER, there MUST be some advantages to a DMP over the IVA or else evrybody would be doing them and DMPs wouldnt exist?!

Any offers from experience as to how it may help? I get an automatic rise in six months at work which PP said would probably get swallowed up (about half, if not more) by a revised payment rate if i went IVA. Would DMP allow me more flext to save some of this up into a fighting fund to make a final payment offer on some of the smaller individal debt amounts?

If I went IVA now, on the figres, my wife and I would benefit by £18k written off at the 5 year point. However if the repayments rise higher i may well be virtually paying off the entire debt figure anyway, so for the sake a perhaps £5k should i avoid IVA to keep a slightly better looking credit report?

I am also wary that I have a couple of VERY aged relatives, and who knows what will happen over 5 years - would hate to end up spending an inheritance (even though they are likely to be very small) on IVA windfall payments....im ashamed enough as it is without having to spend their hard earned money on my debts.

Sorry for the length of this - i just felt the need to get it out there a bit!!

Regards to all,

D_S

FoggyBrain_2

Only you can make the final choice DS. As for your credit record, IVA or DMP will do the same damage, as defaults will still be recorded by the creditors. With an IVA the record clears after 6 years, with a DMP it will clear six years after the last default (which could mean 6 years after the end of the DMP).

DMP's are good for a short term fix to get breathing space, or if the amount is repayable in not much more than 5 years and are informal on both sides. Your creditors can still add interest if they wish, or even pursue you through the courts, the term PP suggests will only work if interest isn't charged -- there are no guarantees of this. Nor is there a guarantee that any company your creditors sell your debts to will be as co-operative.

IVA's are fixed and you have a definite end point. Any company which buys your debt is also bound by the IVA.

Please visit https://www.iva.com (and sister site at iva.co.uk ). Have a word with several IP companies (it's free). You really need several perspectives here.