Should I get an IVA?

Bunnyburrows1968

Hi, I’ve searched the forums but can’t quite find the answer I’m looking for. Sorry if this is a bit long winded . 

I’ve had a DMP with Payplan since 2014 and have so far paid off £14,000 and have about £9000 left to pay. I’m on PIP and UC and took early retirement from my job as a midwife so have a small NHS pension. 

I have a mortgage with around £53,000 left to pay and my house is worth around £200,000. UC is paying the interest on my mortgage. 

i’m currently going through my annual review with Payplan and they are pushing me to start an IVA rather than continue with my DMP. With the DMP  it will take me about another 6 years to be debt free and the IVA would be for around the same length of time.

From the information I’ve managed to find having an IVA would cost me more as there are costs involved in setting it up. UC might not like me taking one out because of the support for mortgage interest they are paying. 

Also because I have a lot of equity in my house they might expect me to look into remortgaging to settle the IVA? I have always tried to avoid involving the house as it’s my only asset to leave to my kids and UC will already have a stake in it because of the SMI. 

I have worked so hard for years to avoid an IVA and it seems counterintuitive to me to start one at this stage or am I wrong and should take their advice and start one?  

fatbelly

I don't really understand where Payplan are coming from on this. An IVA might have had some advantages 11 years ago but not now.

The rules on equity have just improved for protocol compliant IVAs and for some people that might make them more attractive. But not for you

The simplest thing to do is to continue with the dmp and also look at ways of bringing it to a close

https://debtcamel.co.uk/7-ways-to-speed-up-a-dmp-so-it-finishes-sooner/

Bunnyburrows1968

Thank you for replying.  I’m glad I’m not going mad by thinking that an IVA  seemed wrong. It was with their sister company so maybe they would get a commission. I shall have a good read of the info you’ve signposted.

fatbelly

They would definitely get commission

Bunnyburrows1968

That’s probably the method behind their madness then, I’m glad I found this forum because they’ve been very insistent that it would be the best thing for me and it just felt so wrong. Thank you again