Changed my mind re: IVA

simonh

Hi all, and Happy Easter!

Last week (Thursday) I gave myself a kick up the backside and contacted PayPlan. After doing the SOA and everything with them, we went through my options, and I told them I would like to go ahead with an IVA (debt is just over £11,000).

No paperwork or anything has been signed, in fact nothing will happen until Tuesday because of the Easter holiday, but after speaking to the missus, I've changed my mind and would rather enter into a DMP.

Is this a problem? Can I just ring Payplan when they're open and tell them I've changed my mind? I don't think they informed me fully about how restrictive an IVA is, I've got 2 young kids, and I don't want them to miss out on holidays and things for the next 5 years, it's not their fault I'm in this mess.

Any advice would be really appreciated.:)

Deep_In_Debt

Hi Happy Easter.

I'm not really up on all this but I should imagine that if you've not signed the paperwork then it should be easy enough to go on to a dmp.

Just ring Payplan and let them know.

Sparkyalice

Hi Simon
I'm new here and best wait for an expert, but to put your mind at rest, you haven't signed anything so not legally binding. You also get a 14 day cooling off period after signing so you should be ok. However, you don't mention whether your creditors have been contacted yet or if the offer has been made to them. If not...and I would think not if you haven't signed the papers, there shouldn't be a set up charge either. You should be OK to say no on Tuesday but wait for others to comment first.
Best of luck

simonh

Thanks for the quick replies!
It's only in the very initial stages, I haven't even spoken to or been assigned an IP yet, and no creditors have been contacted yet AFAIK.
I was weighing up the pros and cons of both IVA and DMP, and although IVA is a formal agreement with creditors, and I want to pay these debts off, I don't want my kids to suffer as a result. We only get a family holiday every 2 years as it is. I want to be able to up my payments whenever I can, and a DMP seems to give you a bit more flexibility to do that. To say I'm indecisive is an understatement.

Sparkyalice

Best not to sign up to anything until you are as happy as can be (under the circumstances). I too am procrastinating at this time, but will be ready soon, to go for what is best for me and the family.

Pebbles100

I'm in a DMP with Payplan but they are pushing me into a IVA i don't want

So much so that i've just spent the evening preparing letters and a budget to send off to my creditors tomorrow as i'm going to do my own DMP.

If you haven't signed anything then you can't be made to enter into the IVA.

DMP suits us much better and i'm happily squirreling away abit each month to make some F&F offers whilst paying enough to keep the creditors happy and make headway in what we owe.

IVA's aren't right for everyone ,and i've had a hard time getting Payplan to understand that (not to mention a IVA makes them money and a DMP doesn't !).

fatbelly

A dmp does make them money, but maybe not as much as an IVA. They still get a rake-back from the major creditors when you make payments through Payplan to them.

An IVA for less than 15k used to be unheard of. You'd still need a good reason to do one at that level. If you don't have one, I'd suggest starting with a dmp and leave all the insolvency options (IVA, DRO, bankruptcy) still open.

If you want a second opinion, try National Debtline.