Iva to setting up my own dmp

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Jimmey2808
Jimmey2808 Posts: 1 Newbie
in IVA & DRO
Hi I'm in my first year of an iva worst mistake ever with payplan I'm looking for advice I feel like I would be better of with letting my iva to fail and to write to my creditors and set up a payment plan with them has anyone attempted this. NEED HELP!!!!!

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  • sourcrates
    sourcrates Posts: 28,879 Ambassador
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    Hi,


    You need to give us a lot more information in order to make any useful comments on this, for example, how much do you owe, how much is your IVA payment, your income/ expenditure, also why do you think you would be better off in a DMP ?
    I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter
  • PrettyKittyKat
    PrettyKittyKat Posts: 1,270 Forumite
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    It is possible to do yes, although whether it is the right thing to do is another question.

    Why is it the worst mistake?
  • Craig1981
    Craig1981 Posts: 769 Forumite
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    DMP is a lesser version of an IVA, except that you will pay debt in full

    if IVA was a bad decision to you, a DMP wont be anything different, in my opinion.

    at least with an IVA, the payments are legally binding. DMP companies can still add interest, refuse to accept DMP and continue with collection, regardless of you paying them or not

    you may also be responsible for the IP fees on your IVA from start until it has failed, which is another debt added

    more information needed as to why you think it is a bad mistake
  • PrettyKittyKat
    PrettyKittyKat Posts: 1,270 Forumite
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    I've never known an IP chase 'unpaid fees' Craig - does this happen? I've seen IVA's fail within 3 months so no payments were made and therefore no nominee fee taken and they still didn't pursue it. The nominee fee is always taken from the first few payments first, then the supervisor fee is usually based upon contributions made so is taken as and when, in my experience.
  • Craig1981
    Craig1981 Posts: 769 Forumite
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    PrettyKittyKat wrote: »
    I've never known an IP chase 'unpaid fees' Craig - does this happen? I've seen IVA's fail within 3 months so no payments were made and therefore no nominee fee taken and they still didn't pursue it. The nominee fee is always taken from the first few payments first, then the supervisor fee is usually based upon contributions made so is taken as and when, in my experience.

    no, never heard of anyone being chased for IVA fees when it has failed
    was merely stating that fees for services until fail date will still be liable, but these are usually paid by the first instalments anyway - should have been a bit clearer on that
  • PrettyKittyKat
    PrettyKittyKat Posts: 1,270 Forumite
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    Ah ok. I think IP's just write off any fees that have accrued but haven't yet been taken from the payments made to date, so the debtor doesn't need to worry about adding another debt as there isn't one - that's my understanding anyway.
  • ToxtethO'Grady
    ToxtethO'Grady Posts: 342 Forumite
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    Unless the debtor personally guarantees the fees then the IP can make the debtor BR due to that.
    But fees are usually covered by the first few payments.
  • fatbelly
    fatbelly Posts: 20,499 Forumite
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    I've never come across an IP petitioning for bankruptcy on a failed IVA either.

    We're still not clear why the OP thinks a dmp would have advantages over an IVA. Debt camel covers the pros and cons here

    https://debtcamel.co.uk/hard-choices/iva-dmp/
  • maxmycardagain
    maxmycardagain Posts: 5,747 Forumite
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    question... what are the allowed fees or % taken from, an IVA payment, I only hear bad things about thgem
    Now we all know how it felt to play in the band on the Titanic...
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