IVA or DMP
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I have debts of around £19,000 live with my partner and we own a home, I work part time and support my son who is 19 and disabled. I have been advised by one debt management company to set up DMP but advised by Payplan to go for IVA my question is as I own half of the house with my partner and we have 5 years left to pay of the mortgage so I will be 60 at this time and my partner will be 65 and my disabled son will be 24 but still living with us. My question Is if we go for an IVA. Is the house safe at end of Iva, been told we will both be too old to remortgage to rely equity plus I would t be able to get one anyway as I’d have been in an IVA for five years, also it’s not possible to sell the house when the Iva finishes in 5 years. As we need someone for us and my son to live. Advice please
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Comments
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IVAs are usually OK for that sort of scenario
How much is your proposed monthly payment in the IVA?0 -
£69 per month is the intended Iva payments0
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So a dmp at that level will take 23 years. Even if you have to do a sixth year in your IVA that's still a lot better.
Do your research but for a homeowner with little surplus income that does see a reasonable option, if the creditors will go for it.
Edit: I see you have posted on multiple threads and that stepchange are negative about an IVA. So stick to one thread and go with payplan0 -
Thank you for the reply0
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Do not go into an IVA without thoroughly researching the company and costs
They charge phenomenal fees , most of your payments go to them ,only a third to the creditors, so you will have to pay a huge amount back , no matter what . They can extend your IVA , there’s no limitation . I’m still paying mine 6 yrs later! They don’t consider your situation or your problems , they will hound you for more money if they think you’re able to afford it . It was the worst thing I ever did .0 -
BeeBee0301 wrote: »Do not go into an IVA without thoroughly researching the company and costs
They charge phenomenal fees , most of your payments go to them ,only a third to the creditors, so you will have to pay a huge amount back , no matter what . They can extend your IVA , there’s no limitation . I’m still paying mine 6 yrs later! They don’t consider your situation or your problems , they will hound you for more money if they think you’re able to afford it . It was the worst thing I ever did .
There are good and bad. The problem is that it's a poorly regulated sector and it's difficult to work out which is which. So your advice to do research is good, but how do you research in practice?
Now I'm not recommending this company but they are at least open about their fees, and they are not extortionate.
https://www.payplan.com/iva/iva-costs-fees/
The IVA should not be extended without good reason.0 -
BeeBee0301 wrote: »Do not go into an IVA without thoroughly researching the company and costs
They charge phenomenal fees , most of your payments go to them ,only a third to the creditors, so you will have to pay a huge amount back , no matter what . They can extend your IVA , there’s no limitation . I’m still paying mine 6 yrs later! They don’t consider your situation or your problems , they will hound you for more money if they think you’re able to afford it . It was the worst thing I ever did .
I am sorry that you had a bad experience but your above post is so far from the truth of the matter as to be unbelievable.
For the avoidance of doubt, if an IVA is protocol compliant then there are safeguards for all concerned. The fees are accepted by creditors and agreed to at the outset. There are a set number of payments and the only way that would ever extend, in foreseeable circumstances, will have been written in the proposal at the beginning. In unforeseen circumstances then an extension would only be sought if payments were missed or if they were reduced for a significant length of time and a minimum dividend was set.
An I.P. firm will charge 2 fees, a Nominee fee and supervisor fee. Nominees fees would usually be £1,000 or so and supervisors fees around 15%. Other costs have to be agreed by creditors at the start and are usually capped as well. Therefore, the fee issue is a red herring as it is the creditors money.
Should your circumstances improve during an IVA, creditors will want you to pay more and the I.P. firm has a duty to do that. If you don't like paying more when you are in a position to do so then don't do an IVA. Annual reviews to cover the changing cost of living will only ever expect you to pay over 50% of any NET increase in disposable income, so creditors get half and you get half. If you think that is unfair, don't do an IVA.
Ad hoc extra income, overtime bonus and commission are dealt with differently. Anything up to 10% extra per month, again net, is disregarded. Anything over 10%, you keep the first 10% and then split the difference 50/50. If you think that that particular clause is unreasonable and that you should not pay back more of the money that you owe if you are in a position to do so then don't do an IVA.
It really is too late for you to whinge about it now, all of these details, and more, will be in your proposal. If you didn't like them, then you shouldn't have signed it.
If fees are in any way an issue for anyone, there are organisations that will administer an IVA for a fixed fee, so any changes make no difference either way to the I.P. firm. Creditors do seem to like this fixed fee model, so if that floats your boat then find one of those firms.0
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