IVA vs DMP.....Please help Im going demented!

UpToMyNeckInIt

scared-sick wrote: »

Might try and ring payplan or someone tomorrow. I am a bit worried about ringing an actual IVA company as worried they might try and persuade me to go down that route only as it is in their interest.

I must have changed my mind a hundred times today about which way to go. Each time I think it is a definite decision, then I change my mind!!!

Here is me thinking out loud about the main pros and cons:

IVA and DMP both same amounts

IVA 6 years
DMP 22 years

IVA has maximum term
DMP has no maximum

IVA freeze interest
DMP not frozen and even if it was creditors can unfreeze at any time

IVA reduces for definite every month
DMP may go up as well as down depending on interest

IVA fresh start after 6 years wiped clean
DMP fresh start may not be until 6 years after last dmp payment

IVA legally binding
DMP flexible

IVA need to declare, may affect jobs,
DMP no need to tell anyone

IVA under scruitny by IP
DMP trust agreement and up to me to manage

IVA payments could go up at IP's discretion
DMP more or less my choice within reason

IVA once started probably will have to declare forever
DMP if I pay it off and clean up credit file, fresh start

So there you go, the dilema in my head!!

Have I missed anything major?

You are quite right to consider all of these things. Entering an IVA is a serious matter, and should only be considered if you really have no other option. Based on your information, it's going to take half a lifetime on your DMP to get debt free, so an IVA is a real alternative.

Why though would you need to 'declare' your IVA to your employer? It is not usually required.

Also, yes: your income / expenditure is reviewed annually. But you only pay 50% of any additional net income into your IVA. (Eg: if you get a £200 per month income increase, you IVA only costs you an extra £100p/m). Theoretically therefore, your IVA becomes more affordable.

Those links from Stepchange Mat are really good and (dare I say), reasonably impartial.

Good luck with your decision.

scared-sick

UpToMyNeckInIt wrote: »

You are quite right to consider all of these things. Entering an IVA is a serious matter, and should only be considered if you really have no other option. Based on your information, it's going to take half a lifetime on your DMP to get debt free, so an IVA is a real alternative.

Why though would you need to 'declare' your IVA to your employer? It is not usually required.

Also, yes: your income / expenditure is reviewed annually. But you only pay 50% of any additional net income into your IVA. (Eg: if you get a £200 per month income increase, you IVA only costs you an extra £100p/m). Theoretically therefore, your IVA becomes more affordable.



Those links from Stepchange Mat are really good and (dare I say), reasonably impartial.

Good luck with your decision.

Thank you so much for your help and advice, i really appreciate it.

You are quite right and it will take me half a lifetime to pay back.

I thought i had seen the question on some kind of application form but it could have been on an enhanced crb check where i saw it.
Not so long ago i would have been sacked for having an iva, now however because of the current climate i will only get sacked if i go bankrupt!

Have looked at the links mat sent and i still have questions so gonna speak to them when i get a chance.

The good thing is, i can tick along for a couple of months on my dmp so no need to make a decision straight away which i am thankful for.

Will let you know what i decide and how i get on.

scared-sick

StepChange_Mat wrote: »

Hi and thanks for your post.

We hope you don’t mind us jumping in; we came across your thread and wanted to help out.

It sounds like an IVA could be a viable option for you, and our IVA company provides an award winning service.

You would need to provide some proof of income and expenditure to enter an IVA, we’d also need up to date valuations of your property.

In regards your son’s savings account, we’d need more details of what this entailed at the drafting stage of the IVA proposal before we could establish whether this would be excluded from the IVA.

If you want to discuss this further you can either give us a call or you can send us a private message and we’ll get someone to call you.

We‘ve also written a blogpost about the differences between an IVA and a DMP. You might find this useful.

http://moneyaware.co.uk/2011/07/12-differences-between-an-iva-and-a-dmp/

We’ve also written a blogpost on the pros and cons of IVAs which you might also want to read.

http://moneyaware.co.uk/2011/07/iva-the-pros-and-cons-of-individual-voluntary-arrangements/

I hope this helps.

Kind regards,

Mat

Thank you mat and i dont mind you jumping in at all.

I think i will take you up on your offer and pm you so i can chat to someone. Hopefully if i get answers to all the questions in my head then i will be able to make a clearer decision.

scared-sick

StepChange_Mat wrote: »

Hi and thanks for your post.

We hope you don’t mind us jumping in; we came across your thread and wanted to help out.

It sounds like an IVA could be a viable option for you, and our IVA company provides an award winning service.

You would need to provide some proof of income and expenditure to enter an IVA, we’d also need up to date valuations of your property.

In regards your son’s savings account, we’d need more details of what this entailed at the drafting stage of the IVA proposal before we could establish whether this would be excluded from the IVA.

If you want to discuss this further you can either give us a call or you can send us a private message and we’ll get someone to call you.

We‘ve also written a blogpost about the differences between an IVA and a DMP. You might find this useful.

http://moneyaware.co.uk/2011/07/12-differences-between-an-iva-and-a-dmp/

We’ve also written a blogpost on the pros and cons of IVAs which you might also want to read.

http://moneyaware.co.uk/2011/07/iva-the-pros-and-cons-of-individual-voluntary-arrangements/

I hope this helps.

Kind regards,

Mat

Mat,

Tried to pm you but it says you dont receive private messages?

System

scared-sick wrote: »

Mat,

Tried to pm you but it says you dont receive private messages?

Hi and thanks for your reply,

You can find our Private Message inbox on the following link.

http://forums.moneysavingexpert.com/showpost.php?p=57018611&postcount=1

I hope this helps.

Kind regards,

Mat

scared-sick

StepChange_Mat wrote: »

Hi and thanks for your reply,

You can find our Private Message inbox on the following link.

http://forums.moneysavingexpert.com/showpost.php?p=57018611&postcount=1

I hope this helps.

Kind regards,

Mat

Thanks Mat, i have sent PM

Rochdale_Guy

Sorry things are so topsy turvy for you stilll.

I genuinely hope you get something sorted and blast away your debt free debt from CCCS to something sooner.

Good luck and let me know how you're doing please.

Best wishes,

Rochdale_Guy

adyj73

I entered an IVA with Pay plan 2.5 years ago and they were fully supportive. They are funded by the banks as well but they acted in my best interests at all times

I had unsecured debts of £45,000 and am paying back 22%. I kept my house - luckily for me it's in or around negative equity and likely to remain so for the 5 years of the IVA. The relief of being able to live again and pay my bills / mortgage etc was amazing

My experience has been nothing but positive

Good luck whatever you decide

As an addendum - my ex wife who left and contributed to all this mess has entered a DMP but she calculated she could pay it off in 5 years so I guess that works for her. However if a DMP is going to take 20 years plus I would seriously consider IVA or Bankruptcy

whichwhydoIturn

Hello I'm into year two of an IVA and my payment has gone up.
However I'm just so down about this although I now debt will be cleared at the end I really don't know if this is for me
I'm so worried about it , it just keeps going round in my head

Depth_Charge

whichwhydoIturn wrote: »

Hello I'm into year two of an IVA and my payment has gone up.
However I'm just so down about this although I now debt will be cleared at the end I really don't know if this is for me
I'm so worried about it , it just keeps going round in my head

Hi

What are the reasons why your payments have gone up?

Just about everything is getting more expensive and the signs are not good.

Are you struggling to make and maintain the payments?