IVA Call

maxmax

Hi Everyone,
We have been on our DMP with Payplan for just over 2 years and I got a call from them yesterday asking would we want to go on an IVA.
Im not to sure what to do,

I just have a few questions and was wondering if you could help me out.

What is the process of going with an IVA?

I am self employed,would the IVA require accounts and bank statements?

Do you have to go to court?

Is there a risk to your home?

The girl from Payplan said we would be clear from debt in 5 years,and we still have approx 9 years left on our DMP.

Many Thanks,
Max :beer:

FoggyBrain_2

Hi Max. An IVA is a lot more formal than the DMP, in that your creditors are bound by it, once agreed. They cannot charge any interest or add charges at all. You are also bound, so it is a serious commitment,

As a self employed person you will need to make sure your IP is well versed in dealing with the self employed, and might need a face to face meeting.

They will need to see accounts and bank statements, as, of course, you have no wage slips from which to calculate your income.

You don't have to go to court.

The idea of an IVA is to protect your house, but there will be a requirement to release any equity in the last year of the IVA. You will need to discuss this thoroughly with your prospective IP.

Although you will probably stay with Payplan, you do have the option to choose any firm (the fees, which come out of your payments will be the same -- PP are only "free" in DMPs). It is a good idea to chat to a few, a list can be found on https://www.iva.com. It's free and without obligation.