Who do I go with?

ChrisR36

Thank you both for the replies. RAS I'm on an IVA with Payplan.They gave me a brief description of the differences between the IVA and the DMP, then left the final decision up to me. I was more attracted to the IVA because they said that your creditors can't keep on contacting you if you have an IVA. Payplan didn't mention any fees for the IVA, and I didn't know that I would have to declare that I've had one for the rest of my life. I'm too old for a mortgage now anyway, and I certainly don't intend to use credit ever again, so any future refusal would probably be a blessing in disguise anyway. I think it's too late to change my mind now anyway as Payplan have set the wheels in motion on the IVA.

fatbelly

Chris - it's not too late if you've not had the creditors meeting yet. It doesn't sound as if you've even seen the draft proposal yet if you don't know what fee is being built into this.

I still think my earlier advice was good - Commit to nothing until you understand the options a bit better.

This is the National Debtline factsheet on IVAs. It will take just a few minutes to read

Factsheet | Individual voluntary arrangements

Martin has his own guide which is a bit longer.

ChrisR36

Thanks for the advice and the link fatbelly! I really don't know what to do now, I'm way out of my depth with all of this. I know it's my problem and my responsibility, but I just don't know what to do for the best. Payplan kind of turned me off the idea of a DMP when they suggested that the creditors will probably still hassle me to settle the debt. I think I'll send an email to my rep at Payplan and ask him if it's not too late to change my mind. I don't know what I would have done if I hadn't found this forum.

dancingfairy

A dmp is an informal agreement between you and your creditors (a gentlemans agreement if you like). An IVA is a legally binding solution. As such I really, really recommend that you understand an IVA before signing up to one and double check it is the right thing for you. I can understand the panic and wanting to get everything sorted quickly but a few more weeks now isn't going to make much difference in the grand scheme of things.
You also want to make sure that an IVA won't affect any future career you have planned as well.
IVA's can work well but you really should understand what you are signing up for.
Best of Luck
df

dancingfairy

To be honest I can't really see the advantage of an IVA for you, the time taken wouldn't be much different, a fee for the IVA practioner would come out of any money that could be going to repay your debts and you haven't got any assets to protect. I would have thought a DRO (debt reduction Order) or dmp (debt management plan) would be more suitable.
As someone above has said, an IVA seems a little overkill for your situation.
df

ChrisR36

Ok thanks! I've sent an email to my Payplan rep asking if it's too late to change my mind to a DMP, or at least discuss it further before he goes ahead with the IVA. All I can do now is sit tight and wait for his reply.

savvykaz

Hi Chris,
We started our DMP 3 months ago and our debt was a lot more than yours :eek:. I can honestly say we have not had any hassle from any of our creditors, no phone calls, no nasty letters, just ones to confirm the arrangement and that they accept it. In this current economic climate I think these big companies recognise people are struggling and if you're being up-front and trying to clear your debts then what else can they ask? Good luck in making the right decision for you.

ChrisR36

Thanks for the support savvykaz, I hope it's not too late to change my mind.