iva lump sum advice

Learning2Budget

Hello, I have popped across from the debtfree wanna be board. We are currently on a dmp which was due to end in 3 years. OH had a complete nervous breakdown and lost his job. So we have had to reduce our dmp payments. End date now stands at 2060!
I rang stepchange who said full and final settlement (we have £4500,) would be too low as its only 23%.
But a lump sum iva may be accepted.
But I am petrified by the term voluntary insolvency. He also said it would have a massive impact on our credit rating.
Can anyone please offer some advice. They are ringing me soon for a chat.
Many thanks,
Learning2budget.x

Anondebtadvisor

The lump sum IVA does not seem to have been explained very well to you. A lump sum IVA is a one off payment instead of 60 payments and would be complete usually within 12 months.

If you are already in a DMP your credit rating will be affected but an IVA will stay for 6 years from the date it was accepted.

A full and final IVA is a good solution if possible - you get to clear your debts, the creditors get their money and the IP gets to close a case as quickly as possible.

Do some research into your options before you decide

UpToMyNeckInIt

Good advice above.

Google 'insolvency practitioner reviews'. 4th result down takes you to a fairly decent review site.

I suggest you speak to 2-3 IP's.

Is there any reason you dismissed the iva option back in 2008? You might have been done and dusted with a recovered credit file by now had you gone with it back then.

DMP or IVA, your credit file is knackered either way. But your file recovers far more quickly after an iva: 6 years from the START of the plan, as opposed to the DMP, where recovery is 6 years AFTER your FINAL payment.

Bet Stepchange didn't tell you that.

Good luck with whatever you decide.

Learning2Budget

We were previously able to make a decent regular payment back. But now we are paying £5 per month. Noone ever discussed an iva. Thanks for helping. L2B.x

longtermplanner

A single payment IVA is much the same as a full&final settlement which all your creditors accept.

Your new token DMP is not a good debt solution. OK as a temporary measure whilst you work out what to do, but you do need a better way forward. It is quite possible that most of your creditors would accept 23% as a F&F, you have got a good reason for what you are doing. However with an IVA if 2/3 of your creditors accept then the rest have to That is probably why Stepchange are suggesting it as an alternative.

I wouldn't worry about your credit record. For a start it is already wrecked! Looking at some of your previous posts, your accounts have already all defaulted apart from one who you are asking to register a default. In this case they will drop off your credit record after 6 years.