IVA or DMP

Xiphias

Hi

I completed the assessment on the CCCS website which confirms what I already knew (I’m in debt) and gives this summary:
Monthly income = £2315
Total outgoings = £1948
Monthly contractual payments = £850
You have 8 creditors
Your total credit debt = £31593
You have £367 left over each month once you have covered all of your priority expenditure.

I now have 2 options, DMP or IVA. I have read the pro’s and con’s of each but do not know which to choose.

All Advice greatfully received.........

CLAPTON

do you have equity in a property ...how much?
are you financial circumstances likely to change over the next five years (likely to start a family etc)

Xiphias

No property - currently private renting.
No children

CLAPTON

the question was, are your financial circumstances likely to change over the next five years e.g. are you likely to have children which might cause major inpact on your financial situation: i ask because with an IVA once agreed its very difficult to change it to meet changing circumstances.

but the arthimetic is that with a DMP assuming they freeze interest and charges (in no way certain) it would take over 7 years to pay off the debts.

with a IVA it would only take 5 years and with an offer of about 44p in the pound it may well be aceepted

in bankruptcy it would only take 3 years and is much more flexible than an IVA.

however is there any way of increasing your income aqnd continuing to pay the debts...

have you already defaulted on the debts?

Xiphias

Financial circumstances will not change on the children front.
Private renting so a move of address may increase/decrease rental cost in Sept 07 (as this is when current lease ends).
Cannot private rent if Bankruptcy is taken - my lease states this very clearly.
most cc's are being paid late so already defaulted.
no obvious way of increasing income.

southernscouser

How about ways of reducing your expenditure then? :think:

If you want to post a SOA (see this thread) then I'm sure we may be able to help you cut back.

nomoneytoday

Xiphias wrote:

Monthly income = £2315
Total outgoings = £1948

Then you have £367 to throw at your debt.
No IVA required, just a sensible budget and a few cut backs