Currently on a DMP would anyone recommend switching to IVA?

vicxzy

Hi everyone,

Im Currently on a DMP & paying token payments of £1 per month this has been agreed by my creditors for a year whilst I am on maternity leave would anyone recommend switching to IVA at the end of this? When I go back to work I wont be able to afford full repayments as will be part time & couldnt even afford them when full time.

I'm also trying to sell my house, if it sells I hope to use some of the tiny profits (if any at all) to help me survive when I go onto 3 months unpaid mat leave after xmas.

Would I be allowed to do this? Or would I be expected to save it to pay to my creditors come next April when my DMP effectively ends & I return to work?

I have to take unpaid mat leave as I'm currently at risk of redundancy & have been told that if I stay off for the full 12 months when the redundancys have ended I will be guaranteed a job to go back to by law.

Thanks for reading x

Foxy-Stoat_3

You need to speak to an IP or CAB with more information.

Level of debt, amount of income and living expenses.

vicxzy

Sorry but whats an IP?

broker

vicxzy wrote: »

Hi everyone,

Would anyone recommend switching to IVA at the end of this? When I go back to work I wont be able to afford full repayments as will be part time & couldnt even afford them when full time.

A lot can happen in 12 months and an IVA has many variables so I would wait until closer to the time and complete a full assessment of your situation then.

vicxzy wrote: »

I'm also trying to sell my house, if it sells I hope to use some of the tiny profits (if any at all) to help me survive when I go onto 3 months unpaid mat leave after xmas.

Would I be allowed to do this? Or would I be expected to save it to pay to my creditors come next April when my DMP effectively ends & I return to work?

I have to take unpaid mat leave as I'm currently at risk of redundancy & have been told that if I stay off for the full 12 months when the redundancys have ended I will be guaranteed a job to go back to by law.

Thanks for reading x

In a DMP you don't HAVE to do anything as it is an informal agreement. If they found out you came into money and didnt pay them though then they probably wouldn't be happy and start charging interest or demanding more money.

In an IVA it is a lot more formal so you are obligated to pay any monies to the creditors.

broker

an IP is an insolvency practitioner and is the person that sets up and manages an IVA

vicxzy

I have spoken to CAB & they said wait until my DMP comes to an end then review my circumstances instead of speculating on what they may be now but Im so worried over it I would like to try & start planning now x

broker

I wouldn't bother with CAB to be honest, payplan are free and apparently quite good.

vicxzy

broker wrote: »

A lot can happen in 12 months and an IVA has many variables so I would wait until closer to the time and complete a full assessment of your situation then.



In a DMP you don't HAVE to do anything as it is an informal agreement. If they found out you came into money and didnt pay them though then they probably wouldn't be happy and start charging interest or demanding more money.

In an IVA it is a lot more formal so you are obligated to pay any monies to the creditors.

Hi Broker thanks I will definately wait til nearer the time to change as you say a lot can happen. Is there any way they could find out I came into money? They are continuing to charge interest anyway x

vicxzy

broker wrote: »

I wouldn't bother with CAB to be honest, payplan are free and apparently quite good.

I am using CCCS to help with my DMP but thanks I will look into Payplan. I have to admit CAB havent been much use x

vicxzy

Oh & just to check do I have to be a home owner to do an IVA?x

broker

no, not at all. If you are a homeowner it is worse because they take your equity into account and can have a term of 6yrs if they cant get at your equity. Tennant it is just 5yrs but also if you dont have any assets or anything and are a tennant at the time of looking at IVA also compare it to bankruptcy as bankruptcy is shorter and both stay on your credit file for 6yrs.

Don't be scared by the word bankruptcy