Dmp or iva ?

OCTOBER

Hello, I have posted here before, however I was almost certain an IVA was the route I would take. Now I am leaning towards DMP if at all possible, I am studying my budget trying to reduce costs and don't know if a DMP would be the less 'harmful' approach
Can anyone help me with advice and let me know their experiences..
1. It looks like I could have £250 a month to pay into DMP but my debts are 40k for 7 creditors around 13years - is this normally acceptable ? or too long a time -
2. With DMP- I am thinking of the future and if any changes in circumstances - say I came into money (inheritance) within the time , would I be able to give F&F offers reducing the years remaining ?
3. As opposed to doing an IVA - am I right in thinking any inheritance would pay the whole debt plus fees possibly ending up more than I owe - and the IVA would always have a legal hold on my home ?
4. An IVA seems more severe legally and budget wise - However with the DMP the fear of what creditors can do is very frightening to me, it's all credit card debt - but I am apprehensive about the calls or worse - visits to our home ??!:eek:
I haven't missed any payments yet but have drafted letters ready just to say I am taking advice
thank you in advance, this forum is a godsend !!

Willing2Learn

Hi,

Bump... Just dropping by to make sure your thread gets seen

Also, if you want meaningful replies as to whether an IVA or DMP is most appropriate to your needs, then we will require more information. Please complete an SOA (Statement of Affairs) and post it up in this thread. Please click on the 'format for MSE' button at the bottom of the form before posting.
http://www.stoozing.com/calculator/soa.php

Afreshstart

Hi I'm sure somebody else with more knowledge than me will answer you.
I was in a similar position 14 months ago.I was being strongly advised to go for an IVA because I own my house & had debts of nearly £70,000 (loans & credit cards).
I went with a self managed DMP & have no regrets so far.I thought I could always do an IVA at a later date if forced into a corner hopefully that never happens.
Answering your questions;
1.It's long but acceptable if you decide it's the best solution for you.
2.You are correct an IVA would take most of payrises,bonuses,lottery wins,inheritance etc to pay down your debt.
3.You sound as if you are expecting an inheritance.I'm unsure of the legalities but your house would be safe once all debt & charges etc are settled at the end of the IVA.Check carefully for details on ending early.
4.IVA is a very serious step & not to be entered into without fully understanding.You could pay more than you owe most definately.

If you've read some of the DMP thread you will see we all have those worries & for the majority if you follow the right steps nothing bad happens.

I'm a realist & have to say yes home visits are possible but very rare I believe.Yes you will get lots of calls & letters inittially but it's part of a process & not nearly as bad you imagine.

Nobody can tell you what to do but we can relate our experiences.The charity services are free & can also advise.

If you show you are trying to pay back the debt & are not ignoring your creditors they are suprisingly helpful on the whole.

As requested above a SOA maybe useful.

Hope that's been of some help.

sourcrates

Hi,

13 years on a DMP is not sustainable, IVA would be 6 years max, 40k a lot of money, IVA would be my choice.

IVA has no hold on your home whatsoever, these arrangements are designed for homeowners who cannot go bankrupt.

Restrictions not as severe as you may imagine, any windfall would have to be paid to the arrangement though, however you get legal protection from your creditors as standard.

Craig1981

agree with Sourcrates

DMP is not legally binding, an IVA will be. in year 5 they will ask you to release equity in the house - if there is none, then you may pay for another year.

however a lot of other factors - assets you have? expecting inheritance in next 5 years, as you make it sound? if the inheritance is not a factor, and just a scenario you have said to cover all angles, then i would rather secure an IVA

fatbelly

The IP will put a restriction on your property at the Land Registry. Although it will be removed when the IVA completes, they will in that sense have a hold on your property while the IVA is in progress.

Should you need to sell and move in the 5 (poss 6) years then your solicitor will be asked to pay funds to the IP to cover the debts in full, the IP fees and statutory interest. (Although there is often a cap on the amount of equity they can take). So you need to be pretty sure that you are going to be stable for 6 years.