DMP or IVA - what's the difference?

SuzySu

We have debts of around £12,500 (unsecured) and need to find a way of clearing these. I have read Martin's article on IVAs but I'm not sure if we would qualify. Our situation is this:

Selling our house to pay off mortgage and secured debt (settlement figures are £198,000 and £57,000 repectively) so we will be renting for the foreseeable future.

Our plan was/is to emigrate next year, but not sure how this will affect our debt ie. do we keep paying it off from abroad (going to SA)?

I don't really know the difference between a DMP or an IVA so I don't know if we would qualify for both/either.

Maybe we are just better to use money saved (from not having to pay £440 on secured loan each month) to try to clear our debts.

I would really appreciate any advice you have to offer. Thanks.

Persolv0

Hello Suzy
A debt management plan is a way of paying off your debts over a longer period and normally with interest frozen or partially frozen.

The IVA is organised through an accountant qualified in insolvency and a percentage of the total debt is repaid over a five year period (3 years in scotland and known as a protected trust deed)based on your income after priority living expenses

If Im reading you right ..after the house is sold your total debt burden will be 12.5k?
If thats the case and you have 440 per month to pay off those debts id say you were an ideal canditate for this board and to post your SOA for these guys to look over and advise as id imagine you could be debt free in a fairly short period of time

But do seek pro advice from one of the debt charities(CCCS or national debtline)

Best wishes....R

Persolv0

I would add that my explanation of the dmp and iva is very basic but in truth if your debt burden is 12.5 k and 440 a month minimium to pay off i got kind of focused on that solution

bubbles0169

hi im not sure but i think you have to have debts of 15k or more for IVA

So_Sad_Angel

SuzySu wrote: »

We have debts of around £12,500 (unsecured) and need to find a way of clearing these. I have read Martin's article on IVAs but I'm not sure if we would qualify. Our situation is this:

Selling our house to pay off mortgage and secured debt (settlement figures are £198,000 and £57,000 repectively) so we will be renting for the foreseeable future.

Our plan was/is to emigrate next year, but not sure how this will affect our debt ie. do we keep paying it off from abroad (going to SA)?

I don't really know the difference between a DMP or an IVA so I don't know if we would qualify for both/either.

Maybe we are just better to use money saved (from not having to pay £440 on secured loan each month) to try to clear our debts.

I would really appreciate any advice you have to offer. Thanks.

Hi SS ...welcome to the board.

Do you have equity in the property or are you in Neg Eq land??

I agree with Rich that CCCS (will make appt) or Nat debtline (immediate advice) are essential numbers to call this week...let us know outcome..

Angelxx

SuzySu

Thanks guys. I have posted my SOA here in another thread if anyone's interested.

SSAngel: we have a bit of equity in our house, but are having a lot of difficulty meeting all our bills etc each month and need to sell our house which will pay off our mortgage and repay our secured loan.

Depending on how much it costs us to rent, we should have between £300-£400 to pay towards our other debts (overdrafts, c.cards etc).

My question was are we better trying to sort this on our own by arranging monthly repayment with the various creditors, or would a DMP/IVA be better for us?

What happens to the debt when we emigrate?

I have been in touch already with CCCS and CAB, both of whom were very helpful.