DMPs and IVAs

JoJo_Sparkly

I'm about to start a DMP with CCCS to clear my debts - I wasn't given the option of an IVA - I assume my debt was too high for that.
Is it possible to pay off debt on DMP untill it gets to a more managable amount and then transfer to an IVA.
My debt clear day at present is 19 years away!!!! If I could get it down to a lower amount could an IVA be a quicker solution - I'm not saying easier as I appreciate that there are no easy options and I'm all too aware I got myself in tis mess.
What do you think????

fatbelly

From your other threads, am I right in thinking that you have 81k of non-priority debt, and a mortgage?

I would have thought that you're in the right ball park for an IVA to be considered.

Why not ask CCCS what they think?

CLAPTON

impossible to say without seeing your SoA...and how much is the property worth and how much is the mortgage?

JoJo_Sparkly

God!!! sounds terrible when you say it out loud!!

sandralovescats

The minimum repayment on an IVA for £81K will be at least £700 per month.

JoJo_Sparkly

Ahh - That would explain it then! My DMP payments are £199 to start with - though I'm hoping I can increase that very quickly.
Sandra - How do you work it out? Is there a calculator somewhere? so I know what my target amount to knock off it would be - Nice to work towards a specific amount.

sandralovescats

When I was going to do an IVA, they wanted £345 for a debt of £39K.

There isn't a repayment table because it all has to be negotiated!

Folks pay anything from 30p in the £ for the debt that they owe, right up to 60p in the £. Then you add the £8000 or so charge for the IVA which they ALL charge, since the DCA has to be paid for handling the whole thing over the 5 years of the IVA. This is where those ads on tv are so misleading - this "wipe 90% off your debt" simply doesn't exist in reality.

I suppose it wouldn't be possible for you to go bankrupt? It would make life a whole lot easier for you.

I am doing a lump sum IVA with no payments, so mine is totally different!

JoJo_Sparkly

If I were to opt for Bankruptcy I think I would lose the house. Being a single Mum with young children, this really isn't an option for me. Its actually one of the few things I do have to show for this hideous debt. I have about 30K in equity in it.
Not sure How I would stand work wise as a Bankrupt - is it made public?

sandralovescats

Bankruptcy would affect your work only if you are in finance, are a solicitor or an accountant.
Would you be able to remortgage to release the equity in the property?

Any steps towards bankruptcy must be seriously considered, and only as a last resort.

If CCCS say a DMP then I would go with their expert advice.

Brassicks

CCCS recommended i went for an IVA..Debts of about 48 k :eek:

I told them that a DMP looked better,for me,as i would be more in control,so we have gone for that...I now begin paying 385.ppm.Have not heard as yet from any of my vultures,if they will accept or not....