Iva or dmp

babylou27

I'm £26,000 in debt and I'm so scared. My options are bankruptcy which scares me to death, an IVA or DMP. I want to be able to have a life but not be paying debt back over more than 5 years. Need advice? Im single live in a rented 1 bedroom flat. I have a stable job where I earn £1600 a month. I have no real assets like car house etc. Can anyone help with any advice? I'm getting default notices from some of my creditors ...I have a lot of them mainly payday loans and credit cards. I want to sort this quickly.

MovingForwards

Best off posting up a statement of affairs as the information you have provided is limited.

sourcrates

Hi,

Why does Bankrupcy "scare you to death" ?

No debt solution should have that effect on anyone, remember, these exist to help you out of debt, nothing more.


It is actually the easiest option to take, you say you rent, have no significant assets,and as long as you are in a line of work where your financial status is not important, then what is there to be scared of ?

It really is a very simple, online process these days, you pay your fee, and in 99% of cases, thats it, done.

You have a telephone interview with an OR, who will go through your case, its normally just a box ticking excercise, and thats about it, you are normally discharged after 12 months, and the bankrupcy will disapear from your credit file 5 years after that.

Having said all that, going bankrupt for 26 grand seems a bit excessive, i would rule out an IVA (if your going down the insolvency route, you may as well go bankrupt) DMP may be an option, post up an SOA and more personalised advice can be given :


https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter

fatbelly

babylou27 wrote: »

I'm £26,000 in debt and I'm so scared. My options are bankruptcy which scares me to death, an IVA or DMP. I want to be able to have a life but not be paying debt back over more than 5 years. Need advice? Im single live in a rented 1 bedroom flat. I have a stable job where I earn £1600 a month. I have no real assets like car house etc. Can anyone help with any advice? I'm getting default notices from some of my creditors ...I have a lot of them mainly payday loans and credit cards. I want to sort this quickly.

It would be good to see a full soa because we only have scant information here, but from what you have said bankruptcy (£680 fees) would probably work best, as you have no assets to protect and will not have much surplus income.

You may well not even get an IPA, particularly if you let us comment on your expenditure figures!

foxy-stoat

I dont think you in enough debt for an IVA - maybe a DMP.

List your debts and interest rates.

Have you tried the PPI complaint route, may give you a boost to chip away at some of the dearer debts.

rachellouise11

Sorry to jump on your thread. Feeling rather doomed by all my debt to at the moment. What is the difference between an IVA and a DMP?

fatbelly

rachellouise11 wrote: »

Sorry to jump on your thread. Feeling rather doomed by all my debt to at the moment. What is the difference between an IVA and a DMP?

They both require monthly payments but, apart from that, are very different. A dmp is an informal solution where you repay your debts in full over whatever period it takes and creditors agree to freeze interest and charges. There are two dmp firms who do not charge fee for administering one.

An IVA is formal insolvency and is best viewed as bankruptcy for those who have something to protect. You make payments for 5 years and the rest of the debt is written off. The charges from the licenced insolvency practitioners who sell these are high.but built into the monthly payment.

foxy-stoat

rachellouise11 wrote: »

Sorry to jump on your thread. Feeling rather doomed by all my debt to at the moment. What is the difference between an IVA and a DMP?

Start your own thread, list all your debts, interest rates salary outgoings, and assets etc...you should get some advice.