CCCS suggests moving from dmp to iva?

mummybiz5

We are on dmp with CCCS with debts of £56,000 and paying £385 a month but looking at 12 years to clear the debt if interest is frozen - we have a mortgage at £130000 on a property worth about £140000 - as we have 5 children we want to repay sooner than that. OH is a teacher - there is bit of job uncertainty due to a school reorganisation but not until 2013. We like the idea of a fixed and nearer end date to being debt free and more certainty about what creditors will do/not do - does anyone have any thoughts as to reasons for or against an iva?

Isis_Black

i would go for the IVA!
there is a lot more taken off of your hands with an IVA your debt management company will deal with it all for you, you jsut have to provide them with all of the info they need then they contact your creditors and yes its over in no more than 6 years!
ok you not allowed and sort of credit again in that time, so no loans no credit cards and no overdrafts, but your monthly payments may be reduced.
also if you got for an IVA all payments you make at the moment will be stopped so you can save it or make any purchases that are importnat before it all gets going and your payments begin again!

for us we are going to sort out the kids with a few bits and get our cats neutered and spayed! but alos get 1 treat as it will be the last in a long while!

they may decide in year 5 that they want you to remortgage as you have equity, but as our DM lady said that would be very slim to get a remortgage on sensible payments so you would jsut go no for 1 more year and it all ends at the end of year 6!

judojub

Hi.
I am just entering into an IVA myself. It is an awful lot to take in and i would just make sure you have all the pros and cons clear in your head. For me personally, I feel this was the right decision for us. We got ourselves into debt and I want to do my best to pay back as much as I can within my means. I feel a lot more settled now. I just need for the creditors to accept my proposal in April!!
The obvious pros are, an IVA is legally binding. Creditors will have to stop interest and charges. They can not take legal action against you and once your IVA is approved then all phone calls and demands for payments SHOULD stop!
Cons are that your credit rating will be shot for 6 years. You will be expected to try and release any equity in the final year of your term. If this can't be done then the norm is to extend for a further 12mths. You will have to declare all inheritances/windfalls over to your IVA. They will expect a share of any overtime/bonuses.
I am sure somebody with an awful lot more experience than me will come along and advise much more than I can. It isn't a decision to be taken lightly but certainly one that could relieve an awful lot of pressure.
Speak to a couple of IP companies. See how you feel then and don't go with anybody that will want a fee upfront!
Best of luck

FoggyBrain_2

Hi. Agree with all above. In my eyes a DMP is suitable for smaller debts that would be cleared in around the 5 year time-scale, or, if debts are larger, to buy a short period of relative calm during which to weigh up your options. For large debts it is simply too unpredictable over the long term.

I would suggest you pop over to https://www.iva.com and have a look at the companies listed there, along with the reviews. Have a word with a couple of companies to compare advice and to see who you'd feel more comfortable working with over 5 or 6 years.

Best of luck.

FavDaughter1

Hi, BR is always an option,it's up to you to decide what's best for you. we wanted to pay back as much as we could afford. the good thing is the IVA is legally binding,so it protects you.

be careful who you choose to help you,check the link foggy's posted,read up on reviews.

great to see you posting such warm support to others Judo,hope you're ok.
good luck!

judojub

FavDaughter1 wrote: »

Hi, BR is always an option,it's up to you to decide what's best for you. we wanted to pay back as much as we could afford. the good thing is the IVA is legally binding,so it protects you.

be careful who you choose to help you,check the link foggy's posted,read up on reviews.

great to see you posting such warm support to others Judo,hope you're ok.
good luck!

Thank you!! I am ok. Meeting is on 4th April so naturally a little bit on edge right now. A little bit all over the place but my OH would argue that is nothing new:D.
I hope that you are well now that things have settled down a little bit for you! I will get there too one day:) xx

FavDaughter1

Hi Judo, the 4th of April will soon come around.time drags when you're waiting,then it's suddenly you're in the week of your date:eek: before you know it.

keep putting every spare pound to one side for that emergency fund.

your OH sounds as cheeky as mine! they love us really,lol! keep smiling....your turn's a coming;)