Debt Management Plan or DRO?

antsea

Is it certain that I would pay the surplus to the official reciever for 3 years, or is that just something that could happen? I can't tell from the online info I can find.

I have spoken to national debtline by the way. They explained the options and were quite neutral about what I should do.

She did say that a debt management plan would be an option if my income became more stable, and before that I could agree with the organisations myself rather than going through intermediary. And the other option is bankruptcy.

Ineedaname

Once an IPA has been set up, it runs for 3 years. So, if for instance you have no surplus until near the end of your BR year, but an IPA is then set up, it runs for 3 years from that date. If your surplus varies, i.e. your income or expenditure increases/decreases, you have 21 days in which to inform the OR and your IPA could then be varied accordingly. Even if you go back down to having no surplus once the IPA has been running for a while, you are still bound for 3 years.

The trouble with negotiating direct with creditors is that many will not accept an income/expenditure list and offer of payment direct. They prefer you to go through an intermediary. I had this problem with Lloyds I think, they kept telling me to go see the CAB and refused point blank to accept any offer I made to them.

I've run on a DMP for about 5 years now and am still having to go BR. It could take me the rest of my life to pay everything off otherwise.

mel12

If you have a surplus at any time during the first year, you will get an IPA.

Once it is set up it runs for 3 years - it will be adjusted if your income goes up or down. If your income goes down so you don't have a surplus any more the IPA will be suspended - meaning you don't have to pay anything for those months, but its still running and can be reassessed if your income increases again.

If you have no surplus income before being discharged from bankrupcy (usually one year), you can't get an IPA later.