Debt Management Plan versus IVA

Lilpalf

Ok, I'm still struggling with this.

A week ago Payplan who we had applied to do a DMP with rang and said an IVA would be a better option for us. Sounded great but then when we did some reading about it decided it was a bit too extreme for us and we wanted to go ahead with the DMP but Payplan carried on pushing the IVA. My husband is concerned about the future affects at work because he works in an area with a lot of security clearance and he knows the credit issues can affect promotions etc. When I said this to Payplan, she said that if we went with the DMP and any of the creditors issued a CCJ then this would be on his credit file for much longer and would have more of an issue.

I still feel that we should do the DMP but Payplan have just made it sound so much worse than the IVA. I'm aware that it is to do with the fact that they get fees for the IVA but I'm concerned that that is influence my decision about whether the advice is impartial.

Is there anybody who can tell me about their experience of DMP and IVA?

RAS

Hi

Read Martin's Guide here http://images2.moneysavingexpert.com/attachment/ivaGuide.pdf?utm_source=forum&utm_medium=clicks&utm_campaign=resourcebar and speak to some of the other debt charities before deciding.

List of charities here http://www.moneysavingexpert.com/loans/debt-help-plan#help

pmlindyloo

I haven't any experiences of either but having read through some of your other posts I am wondering whether they are recommending an IVA because of your level of debt and because you have no equity in your house (please correct me if I'm wrong)

Did you get an indication from Payplan as to how long it would take you to pay off your debts with a DMP?

I am wondering if Payplan's thinking is that with an IVA you could pay off your debt within a much shorter period of time.

Also, A DMP is a voluntary arrangement and your creditors do not have to freeze interest so the repayment time could be longer. Also, they may hassle you and take you to court. I know that this is probably unlikely but Payplan would not be doing their job if they didn't point this out to you.

I know our CAB refers people to Payplan and I have read good reviews about them.

If it was me I would read up as much as possible and come back with specific questions for people to answer.

Hope this helps.

PS Have just read through all your other posts and now realise that I have misunderstood. You do have equity in your house. It was suggested that your husband does and IVA and you do a DMP. That way your share of the house is protected.

Is this still the plan or do Payplan want both of you to do an IVA? What have Payplan said about the equity in your house?

Lilpalf

Thanks for your replies.

Following today's conversation they now say both of us should do an IVA (not sure about why they are no longer saying only my husband) and she mentioned that having contacted Right Move we only have £4,000 equity in the property at the moment.

RAS

Have you spoken to any other debt charity?

Lilpalf

Spoke to National Debtline initially, it was them that referred me to Payplan. Spoke to them again on Tuesday about IVAs.

I don't mind us having an IVA if that is the best thing for us but because the companies get a fee for them, it just makes me think the advice isn't that impartial.

Having heard from pmlindyloo, it seems that there is a reason for the IVA suggestion, which has made us feel a bit better about it.