3 Years on DMP - should I have gone down the IVA route??

angels11

Hi all

I started my DMP back in June 2009 and I can honestly say its the best thing I ever did......
However it has recently come to light that my husband has recenly run up more debt (a credit card that had expired kindly sent him a new card abut 18 months ago and I had no idea, and a catalogue which never closed the account), this adds up to around £6k. I am obviously very angry/annoyed etc.

Around 2 weeks ago we have got the wheels in motion once again to sort this mess out, I made him contact cccs and explain and they were OKish about this and obviously told him that this shouldnt have happened. They told him to send them 3 months worth of statements for these 2 creditors and send them the letter to tell them about or situation and we are with cccs or ring them. I only just got around to doing this on Friday (as I have had a few family issues to sort and I had just totaly forgot about it).
All the letters were ready to send, but on Saturday we received a letter from cccs telling us we had not been in touch with them and they had sent us several letters about this (I hadnt received any apart from this one) regarding this new debt and for this reason they had now cancelled our DMP.

I am now really worrying about this as I havent been able to contact them about this, with it been the weekend and now bank holiday, and I DONT KNOW WHAT TO DO.....:(

We stil owe £26,600 approx and then this new debt on top. I dont know where i stand with cccs or my creditors

I am now thinking would it be more worthwhile to go down the IVA route???? Would this affect my mortgage huse though? I really dont want to put any risk on losing my house etc.

Sorry for going on a little bit....:(

Any advice would be greatly received as I cannot speak to anybody at the moment because they are all closed....

Thanking you in advance
angels x

Firewalker

I don't think you should do IVA but I DO think that you should get your OH on board. DMP develops the discipline you need to get and stay DF.

Firewalker

angels11

Hi

Yes my OH is on board. Obviously the CC that came through the door was just too tempting and spiralled out of control again, and then he just couldnt tell me about it....

I just hope I can sort this mess out AGAIN.

Just dont know which way to go now.....

Mort

Phone CCCS on Wednesday to go over things. If they won't take you back on give one of the other free organisations, like Payplan, a call.

I don't know enough to say one way or another about IVA Vs DMP but the professionals should be able to talk you through it.

dancingfairy

Hmmm. There is absolutely no point in doing a dmp or IVA for that matter if your husband is going to get more credit. What exactly did the money go on? Was it for essentials and you had done your dmp budget too tight? Did he just splash out? Until you are 100% sure you have got to the bottom of what happened and why there is no point doing a dmp or IVA. Sorry.
In answer to your question an IVA is generally more suited to circumstances where it would take you over 6 years to repay the debt. This is because a IVA is for a set period of time (5 years?). You agree a set monthly repayment with yout creditors and as long as you stick to it for the term then the rest of your debt is written off. You will also be required to release equity in your house at a certain point. As long as you can prove you have attempted to remortgage at this point then your creditors may ask for a year (or 2) extension to the plan to make up for not being able to release the equity.
A dmp is an informal arrangement between yourselves and your creditors and as such creditors can continue to charge interest and charges An IVA is legall binding on both parties and there is very little scope to alter the payments. It is also a form of insolvency and you may have to declare it on some things like mortgage forms etc and also it may stop you getting certian jobs.
You should think very carefully at this point as there is no point doing another dmp if an IVA would be better for you (or vice versa).
Talk to the debt charities to go through the options.
df

angels11

My DH is totally on board and knows what he did was wrong, but that cannot be undone now. I dont know what the money was spent on. Like I said having that Cc through the door was just too tempting.
I just need to try and sort this mess out and Im just hoping cccs can help me sort it out when they open tomorrow again.

katsu

Good luck with whatever you decide to do. I would be concerned that your DH used both the catalogue and the CC to run up over £6k in 18 months as that is quite an overspend to have nothing to show for it, and I hope they have been able to explain to you why they did it when they knew the household was on a DMP so already had a debt problem. I think it would be good if they could tell you what they spent the money on so you know if they were trying to make themself feel better (and if so how you deal with that going forward), trying to keep up with colleagues (ditto), if your household budget was too tight (best to have a realistic idea so you can ensure you can stick to the DMP or IVA repayments/understand what you need to give up/change). If you do go on an IVA then your DH will need to stick to the budgets as it is a more formal process and not one that is as easy to vary as a DMP.

I'm not saying you need to tell us these things, just that I think if DH tells you, it reduces risk of more problems.

My concern is that it is easy for your other half to say they are on board, to live it for at least 5 yrs on an IVA and to have to remortgage the house is a big commitment.

Before you found out about this £6k how long were you expecting the DMP to last?

All the best with whatever you decide. I am sure CCCS or Payplan or CAP or CAB can advise you.

immoral_angeluk

What was the reason you chose a DMP over an IVA in the first place?

angels11

Hi

I think at the time we were just advised a DMP was best and the thought of an IVA just scared the hell out of me, I think just because it went throught the courts and everything. But know i just want to see some kind of light at the end of this big long tunnel.

I pay £205 at the moment and my debt free date is 2035!!!!!:eek:

This obviously a very long time for this to be hungaround us.

Just totally and utterly fed up today to be honest, just feel like crying but I know the problem wont go away if i do that.

I know what hes done is wrong and so does he. Hope I can sort this BIG mess out tomorrow...

Time_to_face_the_music

angels11 wrote: »

Hi

I think at the time we were just advised a DMP was best and the thought of an IVA just scared the hell out of me, I think just because it went throught the courts and everything. But know i just want to see some kind of light at the end of this big long tunnel.

I pay £205 at the moment and my debt free date is 2035!!!!!:eek:

This obviously a very long time for this to be hungaround us.

Just totally and utterly fed up today to be honest, just feel like crying but I know the problem wont go away if i do that.

I know what hes done is wrong and so does he. Hope I can sort this BIG mess out tomorrow...

Hi angels11 :wave:

Am really sorry to hear about this mess but am sure if you phone CCCS tomorrow that they won't just abandon you. Maybe you should mention your fears that a DMP is not the best thing for you and what options do you have that could include this new debt.

Is your debt figure and DFD definitely correct? With debt of £26,200 and a monthly payment of £205, you should be looking at 2022. Even with the new debt, it should only be 2025. Or are you still being charged interest by some of your creditors?

Good luck

barbarawright

angels11 wrote: »

My DH is totally on board and knows what he did was wrong, but that cannot be undone now. I dont know what the money was spent on. Like I said having that Cc through the door was just too tempting.
I just need to try and sort this mess out and Im just hoping cccs can help me sort it out when they open tomorrow again.

Sorry, but alarm bells ringing here. £6000 in 18 months and you have no idea what the money went on? Are there no statements? And why are you having to sort this out? What responsibility is your husband taking?