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Almost at start of Year 3…..

2

Comments

  • Ryd3r88
    Ryd3r88 Posts: 19 Forumite
    10 Posts Name Dropper
    There was an error displaying this embed.

    in relation to the last part of the message no there isn’t as there was no Will and my mother is the next of Kin.


    I’ll have to make some calls etc. Is it worth reaching out to the creditors/collectiors or how should I start? I’d love to be free of the IVA restrictions etc but very scared to make the jump without knowing everything will be ok once I let it fail.

  • Grumpelstiltskin
    Grumpelstiltskin Posts: 5,952 Forumite
    Part of the Furniture 1,000 Posts Name Dropper

    Do not contact creditors until you know exactly what is going to happen going forward.

    Nothing terrible is going to happen when you stop paying. It will take months until the IVA company sort something out, nothing happens quick in debt collecting and the worse thing you can do is panic and do something you shouldn't.

    If you go down to the woods today you better not go alone.
  • Ryd3r88
    Ryd3r88 Posts: 19 Forumite
    10 Posts Name Dropper

    puts me in a hard situation then! I want out but worry about the aftermath but can’t find out more without potentially causing more issues. I’ll have to call a few charities and see what they say about a DMP

  • Grumpelstiltskin
    Grumpelstiltskin Posts: 5,952 Forumite
    Part of the Furniture 1,000 Posts Name Dropper

    Please please don't rush into anything, you will have to wait until your IVA has failed, so contact the IVA company and tell them you are stopping payment, and as I said it could take quite a few months before it fails.

    Use this time to save as much as you can, did you save an emergency fund before you started your IVA?

    With a DMP you need an emergency fund.

    If you go down to the woods today you better not go alone.
  • Ryd3r88
    Ryd3r88 Posts: 19 Forumite
    10 Posts Name Dropper

    No I didn’t have anything behind me that’s probably why an IVA sounded appealing.

    Apart from the obvious reasons of having some savings behind me why is it so important with DMP?

  • Grumpelstiltskin
    Grumpelstiltskin Posts: 5,952 Forumite
    Part of the Furniture 1,000 Posts Name Dropper

    Beecause yiu will have no access to credit, so what happens if your boiler breaks down the week your car fails it's MOT?

    If you go down to the woods today you better not go alone.
  • Ryd3r88
    Ryd3r88 Posts: 19 Forumite
    10 Posts Name Dropper

    yeah so is literally what it says on the tin. I just wasn’t sure if there was some clause or something included when setting it up.

    On average how long does a DMP last and I presume these payments could be a lot more than the IVA?

  • Grumpelstiltskin
    Grumpelstiltskin Posts: 5,952 Forumite
    Part of the Furniture 1,000 Posts Name Dropper

    A DMP lasts as long as it is needed, everyone's situation is different, everyone owes different amount of money and has a different amount of money they can afford to pay. You say what you can afford to pay not your creditors and you can run it yourself easily.

    A DMP is completely informal, no rules like an IVA, but it is way down the line at the moment so don't worry about it at the moment.

    If you go down to the woods today you better not go alone.
  • Ryd3r88
    Ryd3r88 Posts: 19 Forumite
    10 Posts Name Dropper

    sorry to be such a nuisance but it’s something I want to do right not like I did in the first place. Is it worth looking into what DMP payments could be and what my outstanding debt is? As I own a home and won’t release equity the IVA company will add another year so means I have 4 to go with 2 down

  • Grumpelstiltskin
    Grumpelstiltskin Posts: 5,952 Forumite
    Part of the Furniture 1,000 Posts Name Dropper

    Like I said honestly wait until the IVA has failed and you have all the figures giving the balances of your debt then you can contact Stepchange and when you give them the figures they can work out what they suggest your DMP could be. Then you can self manage the DMP and because it is an informal solution the figures can be changed by you at any time if your situation changes.

    If you go down to the woods today you better not go alone.
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