Debt advice

miserable1

Hi. Help i'm currently on a DMP but am constantly being called by various companies to change to an IVA. My debts are about £14,000. I am currently trying to get my business up and running and need to move house in the near future. Will being on an IVA affect me more than a DMP.

pure_dead_dopey

yes much more
these guys just sound like cold callers, hang up and don't entertain them

Tixy

Hi and welcome

Who is your DMP with currently? When you entered it did you have any advice from one of the debt charities?

If your DMP is not with one of the charities or a free provider such as payplan then I would suggest contacting them and seeking their advice on whether an IVA might be more suitable or if not then consider switching to a free DMP run by them.

Usually people who cold call regarding selling IVAs etc are just after making a lot of money from you.
If your income from your business fluctuates this might well not suit an IVA.

When you say you need to move house - do you currently rent and intend to rent somewhere else? or do you own a property and want to buy somewhere else?

RAS

miserable1 wrote: »

Hi. Help i'm currently on a DMP but am constantly being called by various companies to change to an IVA. My debts are about £14,000. I am currently trying to get my business up and running and need to move house in the near future. Will being on an IVA affect me more than a DMP.

Firstly, a DMP is an informal arrangment and should be provided free of charge; if not move to a free provider (one of the debt charities or Payplan).

Secondly a DMP costs about £6000 in fees, which is why the cold callers want you to take one out. This means that below £15,000 it is usually viewed an unsuitable option as the amount paid back to your creditors will be too low for them to agree. And if you finances improve, you can end oup paying back the £14K and the £6K fees on top.

It is a formal insolvency arrangment that goes on the Insolvency Register permanently and has to be declared any time you are asked about one, so will affect your chances of getting credit for a very long time and is likely to affect renting as well.

miserable1

Thanks guys for the replies, The DMP company i'm with is called Money freedom. When I tried to use a free provider I was told I couldn't be accepted due to not enough money left over after outgoings. I own/mortgage my property and desperately need a bigger property.

MrsTinks

Start by posting up your SOA on here and letting the ladies and gents have a look see.
You need to get shot of the fee paying DMP company - you do NOT need to pay a vulture to help you with this - worst case you can do a self managed DMP
If you can't manage the DMP payments then I strongly doubt you can afford a larger property... your credit rating won't look great for a while so changing mortgages will be tricky, or rather more expensive than it will be once you are debt free and your file has had time to get some serious green dots

miserable1

Hi, this may be a stupid question but what's an SOA.

silvdo

Statement of Affairs

read the post Help for First Time Posters & SOA Calculator which will show you how to calculate it. I did it and got somegood advice.

Tixy

Hi

Its a statement of affairs, which is an income & expenditure statement and list of your debts - it shows us (and you) the financial situation you are in to see what might be a sensible option for your debts and also lets people suggest if they think there are areas you could save money/ get things cheaper using tips from the site (eg switching suppliers/negotiating deals etc).
We use this calculator for the SoA - http://www.makesenseofcards.com/soacalc.html