Repairing credit rating after IVA?

Zyyb

I thought IVA's have to run for 5 years?

nicola1982_2

Sorry to sound incredibly stupid - what is the difference between an IVA and a DMP?

rayday2

IVA you can get some of your debt written off and its a set period of time, DMP you pay until you have payed all the debts off hopefully with interest rates frozen.

Dr_Hook

Zyyb wrote: »

I thought IVA's have to run for 5 years?

An IVA can run for any length of time, but yes, usually 5 years. It stays on the credit file for 6 though (i.e. the 5 years the IVA is running + 1 year after it's finished)

RAS

DMP, you pay the whole whack. If done through a debt charity, you pay no fees but you could be paying for many years. Some people are paying very msmall sums each month. Interest usually frozen. If you manage it yourself, you could do full and Final offers in later years. You can transfer from one provider to another or manage it yourself.

IVA - you may get a 30% reduction in debt and only pay for 5 years but would not be open to you if your income is too low, as 75% of your creditors have to agree. The company managing it charges a substantial fee (officially to the creditors) which may be the first two year's payments. Debt companies may know of IVA providers who charge lower fees. If you have any equity, this is usually released in year 3 or 4 of the IVA (remortgage/sale). Again, if your circumstances change the payments can be altered.

There have been a number of posts on here from people who have been advised towards the end of their IVA that they have not paid enough to cover their IVA.

If you default on an IVA, then the only route out is usually BK.

Dr_Hook

IVAs are definitely a course of action to be considered carefully. They are what they were designed to be - a last-chance saloon before bankruptcy for those with an asset to protect (or other reason to avoid bankruptcy such as career impact).

Bankruptcy is not automatic upon failure of an IVA (if the creditors don't want it, the IP/supervisor sees no benefit to doing it (i.e. no assets) & it's not specifically written into the proposal, it won't happen), but the alternative is that you're back at square one, having wasted x months & paid x number of contributions - most of which will go to the IP in fees.

It is the right solution for many people, but it seems a lot of desperate folk are being railroaded into IVAs or mis-sold them as the answer to all their prayers, which in the event it often won't be.

Get as much info/advice as you can and make sure you understand what you're committing to before you sign/pay anything.

love2learn

misspoppy wrote: »

More importantly has she gone through a debt charity so she isnt paying large fees for her IVA? IF she hasn't she should stop and contact one of the debt charities who will help her with an iva but for no fees.

We've lost the name of the website we found it on, but I'm pretty sure your right. It's not an IVA charity website, it's a middleman. The only fee they mentioned was £500 to protect her house, as she has a mortgage on it.
Do you know any IVA charity websites, who can also deal with Scottish trust deeds? Also, do you know if the IVA charity orginisations have the same success rate in actually getting IVA/Scottish Trust deeds as the middlemen?
Thanks for your help!

climbgirl

CCCS and Payplan are the two charities people here use for DMPs and IVAs. Martin has links to them at the top. I don't know if they deal with scottish trust deeds or not, I'd suggest giving them a call and asking!

love2learn

climbgirl wrote: »

CCCS and Payplan are the two charities people here use for DMPs and IVAs. Martin has links to them at the top. I don't know if they deal with scottish trust deeds or not, I'd suggest giving them a call and asking!

I've found the link for payplan, but what's ccc's?

rayday2

Stick the names in google, also national debthelpline they are another charity.