Iva or Dmp

Hmatisse1951

Hi everyone 
I’m looking for some extra advice please?
I am currently liasing with PayPlan and they have suggested to me an Iva.
I have 65,009 unsecured debt made up of loans, cards etc
I am full time working , have a mortgage of 130,000. I am 53
struggling now meeting payments with cost of living, energy rise, mortgage interest rate rise etc
However in just a little over 2 years I can drawdown from my pension tax free but would pay off my mortgage, that was the plan!
Do I start a dmp or an Iva ? I’m confused
can anyone offer first hand experience to help me
Thank you

fatbelly

An IVA sounds like a good idea if you can get a proposal agreed that leaves your pension alone.

The devil's in the detail though. What monthly payment are they suggesting? Over what period? Any particular clauses specific to you?

Hmatisse1951

Thanks for your reply.
monthly offer of £60 for 6 years after bills and living costs.

Hmatisse1951

Month 54 talking about releasing equity from house by remortgage

Hmatisse1951

Does anyone think by me going for a Dmp and not tied into an Iva for 5-6 years is better because in 2 years with my pension I can pay off my mortgage and secured debt and then focus on the unsecured debt?

fatbelly

Hmatisse1951 said:

Thanks for your reply.
monthly offer of £60 for 6 years after bills and living costs.

You'll be unlikely to remortgage in yr 6 so expect a seventh year on the IVA

84 x 60 is  good if they can pull it off

You will need to have that disposable income and also not move house through that period but if you can get through it that's your debt settled for a tiny fraction.

If you only have £60 available then a dmp makes no sense. However if the IVA proposal isn't accepted that is pretty much all you have left

We generally don't recommend throwing your pension away to pay off debt on these boards

Hmatisse1951

Thank you
Would you recommend still paying off my mortgage and a secured loan in 2 years and see out the IVA in my case?

fatbelly

Good grief no. If you go into an IVA you must do a lot of reading to understand how they work.

If there is no mention of your pension in your IVA terms and conditions, then if you take money from your pension it is likely to be seen as a “windfall” and it may have to be paid to your creditors. Before you do this, you need clarification from your IVA firm that it will not be touched – get this in writing.

This is from 

https://debtcamel.co.uk/iva-pension-changes/