Just looking for some clarity on DMPs

ManyWays

you have a large amount of of debt and cannot afford to pay much to an IVA. It is pretty unlikely an IVA would be approved. IVA fees are upwards of £3500 so once you take that away from your payments there would be very little left for your creditors. 

Also Payplan advised that bankruptcy would be better - they are an IVA firm and that suggests that they don't think an IVA would be likely to be approved. 

sonnet72

Payplan advised both bankruptcy and IVA

fatbelly

sonnet72 said:

Cab said they don’t want to give me any advice because I’ve already spoken to PayPlan , I think that was a bit extreme but probably they wouldn’t have said anything different

Well done to CAB on that one. Debt advice is best done through a single adviser who can formulate a strategy with a client and see it through.

They may well have said something different. Debt advice is part art, part science

If you have multiple advisers you are likely to get multiple strategies and these may conflict and cause more problems than they solve

I have previously said that I do not rule out insolvency somewhere down the line as that you do not have an established beneficial interest and we know that in bankruptcy interest follows title, which means it's what is recorded at the Land Registry that counts

sonnet72

Ok guys , this is where I am at right now.  As said above, multiple advisors can lead to multiple strategies and cause confusion. 

I’ve had some brilliant advice on here and read through other people’s threads. Additionally I’ve spoken with stepchange about 3 months ago and then very recently PayPlan. 

The debt solutions offered to me have been:: IVA , Bankruptcy, complete Debt writeoff - or almost complete debt writeoff followed by it being statute barred. 

Both step change and playplan have suggested either IVA or IF that’s not agreed by creditors OR I’m looking to clear the debt sooner then bankruptcy. 

I feel that you lovely people on here are very strongly against IVA. The majority have suggested Debt write-off followed by bankruptcy if that fails. 

Now, the reason I want to look at the IVA option is because I’m really scared, I’m breaking down mental dealing with guilt and shame issues which I’ve battled with and have medication for for over 20 years. My current situation with my 2 special needs adult sons is making me exhausted physically and mentally and basically, as hard as it is to admit : I need my hands to be held to get me out of this new pit I’ve gotten myself into. 

That said, it’s making me really nervous when I read comments suggesting that an IVA world be a really stupid choice, can make matters worse for me, is something being suggested by people who wish to exploit my situation for their own financial gain. 

I’m finding out about mid-sold IVAs and also thinking myself how anyone would agree to just over £100 being split across 3 debtors and the IVA agent for a 60k debt. 

I put this to pay plan and they said if they didn’t think there was any chance for it to be agreed they wouldn’t go down that route as it will be wasting everyone’s time, including there’s. 

Regarding the commission/fee that they will receive, unless it has a direct impact on my repayments I don’t know why I should worry about that. The only thing I’m thinking regarding that and the whole ‘why would creditors agree to the IVA’ thing is that ultimately they will seek to release equity from the house . 

That’s the part I need to iron out - I haven’t found any case similar to mine ( not being on the deeds and no major financial contribution in the purchase, mortgage or upkeep) where that’s been enforced. As far as I understand, this week be discussed BEFORE signing the Iva agreement and if I find I’m not satisfied because of ambiguity regarding the house, then I won’t sign it and pursue one of the other options. 

Regarding my ability to pay over 5 or 6 years, I’m confident I can due the the small amount that’s been proposed so far. 

I still have questions to ask PP, such as if my income gets lower -as child benefit has been included in MY income ( CAB agreed to that part before telling me to get lost) - then very soon that’s going to be cut off due to the age of my daughter. I should still be able to afford the repayment but will this cause issues or do they not care as long as I pay the agreed amount. 

Now, because of the very strong opposition to IVA that I’m sensing on here, I’m asking : is it because I’m being lied to and set and being set up for failure on the IVA?  Is there a sinister twist that I’m overlooking? Or is it to do with paying for 5/6 years when I could have avoided it on the other routes? 

Is there a possibility that the term of the IVA gets extended beyond 6 years- I’ll ask PP to guarantee the term but going beyond 6 years as long as I make my payments. 

So, the other research I’ve done is read reviews on PayPlan and they seem to be positive majoritarily. 

If I’m still missing something please let me know otherwise if you guys think it can work- even if you believe they won’t agree to it in the first place. I’d really love to hear that

Grumpelstiltskin

You know what you are missing ----  your husband knowing and being on your side.

It has been explained to you that if and it is a big if an IVA was granted you would have to involve him so take the bull by the horns and tell him now.

sonnet72

Grumplstiltskin, I’ve said many times- I WILL tell him once I have a plan in place. Obvs he could find out sooner and that’s a risk I’m willing to take. You don’t know him, without a viable plan in place he’s going to majorly panic and either not be able to forgive me, leading to a subsequent end to our 32 years marriage or break down. 

Ofcourse it’s his hand that I want to hold through out this, ofcourse I’m disgusted at myself that I’ve kept this from him and he DOES have a right to know. But ultimately it’s my debt that I need to address and shouldn’t have to pay the price for my mistake, once I can assure him of that - I.e house won’t be involved- then I can also assure him that I can pay the IVA amount and we’re looking at 5-6 years and this will be over 

Grumpelstiltskin

If you can get your creditors to write off your debt it will be over quicker.

You have nothing to lose to send them letters - by snail mail and ask if they will write off.

Once you have done that you can tell him you have a plan.

sonnet72

But will they respond quickly? From what I’m reading they tend to ignore write off requests for several months

sonnet72

Grumpelstiltskin said:

If you can get your creditors to write off your debt it will be over quicker.

You have nothing to lose to send them letters - by snail mail and ask if they will write off.

Once you have done that you can tell him you have a plan.

This does sound like a good first step to take….. 
I’m going to mull over this this weekend. Maybe I can set my self a target of 2 weeks max then start Iva procedure

 the only thing stopping me is if my anxiety takes over and I’m back to just wanting PayPlsn to take over 

Grumpelstiltskin

Look your  are not going to get write off results in  2 weeks, you will be lucky to get any replies in 2 weeks.

If  you go for an IVA it will be months before your creditors are happy with it and if so it starts.

You have to realize nothing will happen quickly and you have lost time by not asking for write offs when it  was first suggested.