Help needed

Rossy2692

Hello everyone,

Well, I am in a DMP with 22,500 debt and also have secured debt of 75,000.

I have been on the DMP for nearly a year but recently they have been mentioning an IVA, does anyone have any advice or info in an IVA as i don't understand how that one works.

Thanks

Conor_3

Basically...

An IVA lasts for a set period - 5 years. Your income/expenses are looked at and a monthly payment is worked out. You pay that money to the IVA company and the IVA company distribute that to your creditors. Once the 5 years is up, the IVA ends and you no longer make any payments and the creditors debts are marked as satisfied, regardless of how much they've got.

If you miss payments, however, they can BR you.

CLAPTON

who are you doing a DMP with
how much are you paying each month to the DMP
how much is the house worth, how much is the mortgage and the secured loan
is the house jointly owned
are the debts all yours or joint with OH

Rossy2692

I have a DMP with All clear, changing when I get statements, we pay 250 a month, house is worth 90000, 29000 left on mortgage 750000 secured loan all debts are joint total unsecured 22500.

CLAPTON

Firstly contact CCCS or Payplan and drop All Clear. They will do what All Clear do but for nothing so all your money goes towards your debts and so they will be paid off earlier.

An IVA has to be agreed with your creditors (by 75% of those voting by value) so whether or not you can do one depends upon them.

Usually a IVA has a 'remortgage' clause for the 4th year so you have to release the equity in your property but as you seems to be in negative equity maybe that would be important to you.
also there are clauses that mean they take most of your bonuses/pay increases etc for the five years so another thing to watch.
They are very inflexible and its very difficult to reduce payments if your circumstances change (change job, kids, major expenses ).. rememeber 5 years is a long time and lots of things might happen.

assuming interest and charges have been frozen you may be better to continue with the DMP and try to save as much as possible and try to negotiate F&F settlements in a year or so.

Rossy2692

Thanks very much for your help Clapton, I think i will stay with the DMP, in the process of changing to Payplan once I get my statement withh a/c no's and balances from Allclear.

Thanks for your help.