to do or not to do???

thepinkladez_2

hi all just got my letter from cccs and just need to sign the forms and inc all statements so they can set up dmp. just a quick question.....
we have changed our mortgage deal which would give us roughly another £100 a month to add to £450 ish cccs have agreed on, (sorry to be vague on figures but don't have exacts to hand!). we are also ending our sky, broadband, phone package and hopefully mobile (changing to payg and virgin 3 for £27 deal) so that should save us another £50ish. This should then give us about £600 a month to give to cccs. just wondered would we be on a iva with this amount or staying on a dmp and just pay more thus clearing the debt quicker? (currently will take 7 years exactly to clear debt paying £450 ish a month).any advice much appreciated as always

rayday2

An IVA will impact your credit history much more than a DMP, so it is entirely up to you.

If you want some professional advice give CCCS another ring and see what they say if they still recommend a DMP then you have your answer.

I am a bit worried about IVAs but its probably being on this board and seeing when they go wrong and I have to admit I do not know an awful lot about them. One financial advisor told me they were classed in the financial market as a step away from bankrupcy and I have seen some jobs where you cannot apply with one.

But honestly I am not very up on them just heard the bad press bits really! CCCS would know a lot better!

rayday2

Found a little more about them!

What are the advantages?

• You may only pay back a percentage of your debts
• You only have to make one monthly payment or in some cases, a one-off lump sum
• The Arrangement is legally binding so that your creditors cannot change their minds once they have agreed
• Once the IVA is in place your creditors cannot bring any other action against you as long as you maintain your agreed monthly payment
• You are able to operate a 'normal' bank account as long as it does not have an overdraft facility
• No publicity in the local papers
• It may safeguard your property
• Does not affect the ability to hold public office
• An IVA does not affect your professional status

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What are the disadvantages?

• IVAs are only suitable if you or another person can afford to make an offer of repayment to your creditors
• Your creditors have to agree on the arrangement through a vote, However we will not suggest this course of action to you unless we think there is a good chance that your creditors will accept your offer
• If you do not make the payments to the IVA it is likely that the Arrangement will fail and your creditors will be able to take other action against you. It may also result in your bankruptcy

http://www.insolvencyhelpline.co.uk/paye-employed/iva_facts.htm#ivafacts4

I also remember seeing on here that they often run over the 5 year and that if you have a good payrise or bonuses then they do go up the levels you pay but again its just from what people have said on here - sorry!

thepinkladez_2

thank you rayday2 for your prompt response.

yes they do worry me too!like you i really don't know a huge amount about them to make a informed decision at this stage. I only seem to hear the bad points. The whole BR thing scares me so one step away doesn't make me feel to good! just obviously want to be debt free as quickly as possible and then rebuild my credit file as would like to have a normal life back!ideally like to move home etc once debt free so didn't know if an iva would be better if it means a shorter term?at the moment looking at 7 years to clear debt and then 6 years to fix credit rating. (well guess it wont be 7 years if can add extra money?!)

thepinkladez_2

god i'm a bit confused i think its best to call cccs on this one!

RAS

Hi

When you do check out the impact of IVAs on mortgages as I have seen at least one person who really struggled.

Also, do you realise that in year 3 or 4 of the IVA, you have to release any equity in the house to the creditors? That is based on the value at the time of release not the current value.