default will it lead to Iva

Ragdoll_kat74

Hi I’m in the process of sorting my debts by either defaulting or DMP ? However my partner is worried if we default that we won’t get offered a DMP and will go to IVA which neither of us want . Also if we have DMP will my bank see this and remove my existing overdraft that I haven’t used ? 

fatbelly

No-one can force an IVA on you.

Who are you getting advice from?

ManyWays

I think you need to talk through your situation here and then tell your partner what is said.

They obviously dont know anything about debt solutions, a very large number of people entering a DMP have defaults, and no one can force you to take an IVA. That isnt a criticism, just a fact, so listen to their concerns and keep them informed, but take what they say with a big pinch of salt.  

Also if we have DMP will my bank see this and remove my existing overdraft that I haven’t used? 
Your bank will only see a DMP if you have another debt with them that is in the DMP eg a loan or credit card. In this case, you should change banks, and this applies if you are going down the default/DIY-DMP route as well as if you go for a DMP through a firm. 

sourcrates

Ragdoll_kat74 said:

Hi I’m in the process of sorting my debts by either defaulting or DMP ? However my partner is worried if we default that we won’t get offered a DMP and will go to IVA which neither of us want . Also if we have DMP will my bank see this and remove my existing overdraft that I haven’t used ? 

OK, you appear to be a tad confused about how these things work, defaulting is a part of the debt management process, as until you default, you are still under the terms of your agreement, and still accruing interest, and to enter a DMP, those terms ideally should be broken first.

How you choose to repay your debts is entirely your choice, you are in charge, no one else.

Debt management is an informal arrangement, but an IVA is insolvency, and only suitable if you are a homeowner with over 50k of debt, note the "V" in IVA stands for "voluntary" you cannot be forced into any debt solution, by anyone, you choose which option is best for you, based on your circumstances, and after taking independent free advice.

When you start a DMP, its best practice to budget for an emergency fund, as credit will be hard to get going forward, this avoids using high interest options such as overdrafts.