IVA or DMP

chrisb1357

Hi There,

I have been with PayPlan for the last year on a DMP plan paying around £100 a month to pay off around 16K of debts i got in trouble with a while back. Before that i managed my own DMP plan direct with the creditors for a year and before that was with the CCCS for 3 years until i lost my job. I have been happy paying £100 a month for the last 12 months via PayPlan and its been no trouble at all.

They contacted me today as i am due for my annual review and they suggested an IVA might be better for us. The problem is i cant make my mind up and i have a funny feeling with an IVA and would be still happy to try and clear the debt off iva the DMP Plan.

Would my creditors have any issue with me staying on a DMP or would they rather me be on an IVA. PayPlan seem to want me to go down the route of an IVA.

Also my work seems to be getting rid of a few people and we all know what the job market is like at the minute so i did not want to go down the route of an IVA then in 12 months time my job is at risk etc.

Depth_Charge

chrisb1357 wrote: »

Hi There,

I have been with PayPlan for the last year on a DMP plan paying around £100 a month to pay off around 16K of debts i got in trouble with a while back. Before that i managed my own DMP plan direct with the creditors for a year and before that was with the CCCS for 3 years until i lost my job. I have been happy paying £100 a month for the last 12 months via PayPlan and its been no trouble at all.

They contacted me today as i am due for my annual review and they suggested an IVA might be better for us. The problem is i cant make my mind up and i have a funny feeling with an IVA and would be still happy to try and clear the debt off iva the DMP Plan.

Would my creditors have any issue with me staying on a DMP or would they rather me be on an IVA. PayPlan seem to want me to go down the route of an IVA.

Also my work seems to be getting rid of a few people and we all know what the job market is like at the minute so i did not want to go down the route of an IVA then in 12 months time my job is at risk etc.

Hi

Interesting.

I cant see why your creditors would have a problem with you staying on a Debt Management plan, they wont even know that you are considering an IVA.

Just out of interest, what reason do Payplan give for now suggesting an IVA at this annual review, what has changed?

You really need to have a sustainable income with an IVA (if there is such a thing in the current economic climate) or you run the risk of a failure and perhaps a considerable amount of the money you have paid in fees left up the swannee or in Payplans pockets (they are not a charity).

You have to seriously consider all the pros, cons, risks etc

Have all options been explained and advised, including bankruptcy

Are you an homeowner by any chance?

I can't say no more really given the limited info other than £100 per month does not seem a high payment for a standard 5 year IVA

It has to be your decision based on the circumstances, just be absolutely sure is my take on this.