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Original poster

dMP or IVA

33 replies

Slowlygoingunder · 09/02/2015 21:03

I have been in touch with steps for change as I simply haven't enough in comings to cover outgoings as DP is forced to PT due to ongoing health issues(advised not to go back by consultant but we would never survive on what little benefits we may get ! ) now a grand down :( not entitled to Wtc as just over threshold for couple with one dependant ) 800 of outgoings are credit card and 12 grand bank loan that was used to consolidate cc a while back but due to unpaid time off to have surgery because he was facing dismissal if ant more time off !) we had to use the bloody cards again and now maxed out ! So they have predicted either IVA ( debts paid and remainder wiped in 6 years , creditors can't cotact me or DMP where paid in 8 years but creditors can still persue , I know either will ruin credit rating but IVA sounds more drastic , need to decide quickly as over draught almost gone and won't be able to pay next month , can't believe I'm in such a mess ! Never missed a payment and credit score is good but can't get a loan to consolidate again as in too much debt ! Any idea which route to go down ? ( total 28 grand)

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Original poster
Slowlygoingunder · 09/02/2015 21:10

Steps change reckon a sum of 290 per month which is doable , also DMP will be reviewed so even moving to a cheaper rent will mean the amount to pay will go up . Was planning on moving whilst still got a decent credit score but not ideal now . I'm rambling I know . Sorry

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TickleMyTitsTillFriday · 09/02/2015 21:13

Don't know much about DMPs but IVAs are off your credit file in 6 years and you only pay what you can. Do you own your house?

purplecloud123 · 09/02/2015 21:14

Do you feel £290 per month is doable? If you do move and have a larger surplus, you would have to pay more into an IVA too. The term of the IVA wouldn't reduce, but if you could pay more into a DMP then the term would go down. Did they recommend one over the other?

Original poster
Slowlygoingunder · 09/02/2015 21:16

No it's rented , I think maybe IVA as thers an end in sight and more legally binding but DP thinks both are too drastic ! Sure he thinks if we ignore it it will go away ! Head in the sand ! I have day off tomorrow and need to sort something out !

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Original poster
Slowlygoingunder · 09/02/2015 21:17

IVA first but then I sent for application for DMP but swaying to IVA I think ....

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TickleMyTitsTillFriday · 09/02/2015 21:18

The amount you pay into your IVA can reduce. They will do yearly checks. What you pay can go up and down. If it does go down too much then another creditors meeting may be needed but Stepchange would help you with your budget to try and avoid that.

purplecloud123 · 09/02/2015 21:21

The main benefits of an IVA over a DMP are that you're not going to get any hassle from creditors (if they agree to accept it) and they can't take any further action against you to recover their money, provided you stick to the terms and conditions. You've also got a definite end date. A DMP is informal and could offer more flexibility. I would choose an IVA if I was confident I could afford the payments because it's more definite and you have the extra protection from creditors.

TickleMyTitsTillFriday · 09/02/2015 21:21

To me an IVA seems like a better option. With a DMP the creditors can still hassle you...moneyaware.co.uk/2011/07/12-differences-between-an-iva-and-a-dmp/

LivingLife2theFull · 09/02/2015 21:22

Have you looked into dla for your husband? You can get it even when working.

TickleMyTitsTillFriday · 09/02/2015 21:22

Cross posts there! I know someone who is months away from finishing their IVA and they're beyond excited. Another year and it will drop off their credit file.

Original poster
Slowlygoingunder · 09/02/2015 21:26

Thanks , hate the thought of no debit card ., emergency cc or overdraft ! Not given DS what he needs - not so much material things but security. Needs must so best get out the whip ( or a big stick) and knock some sense into DP ! Why is it its us women that always have to sort thing out !! il ring them tomorrow and see what's the best way forward !! Nervous for the future , wouldn't care if was just me and him ! Have a wonderful gorgeous 7 year old and it breaks my heart he's in the middle of it all :(

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Original poster
Slowlygoingunder · 09/02/2015 21:28

Got a pips claim in .. Be 16 weeks but only £21 mobility component mainly so can get a blue badge for car and it's so hard to get that now ! So might get declined anyway

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Original poster
Slowlygoingunder · 09/02/2015 21:29

Yes the harassment by creditors is what's swaying me to IVA !

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TickleMyTitsTillFriday · 09/02/2015 21:33

You can have a debit card if you're on an IVA. And you would be in a much better position than you are now. My friends monthly payments went down from 1200 a month to 200.

Original poster
Slowlygoingunder · 09/02/2015 21:34

Thanks ladies :) il pop back on later as Mr ostrich is coming back down stairs ;)

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Original poster
Slowlygoingunder · 10/02/2015 14:42

So I've been in touch and did a new calculation as I missed out a car loan ( daughter pays me but the through my acount ) told all debts have to be included that are in my name , new figure came at 140 a month ! So a DMP would take 18 years !! Have to phone back if want to go ahead with IVA .... Just need to convince the man with head in the sand .... Wish me luck !!!

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Zamboni · 10/02/2015 14:52

Have you considered a debt relief order or bankruptcy? If you are in this much debt and have no assets to protect, then you may be better off with a clean slate and start again. Yes the credit rating will be badly affected but it probably isn't great ATM anyway and both an IVA and bankruptcy are formal insolvency processes as far as the credit file goes.

If your debts are joint then you may need interlocking IVAs for you and your partner. If you think an IVA is right then please go and see a local insolvency practitioner who will probably see you initially for free advice rather than be referred to an IVA provider who you never meet.

Original poster
Slowlygoingunder · 10/02/2015 14:56

dR0 is for £1500 or less , bankruptcy is a step to far I think , will impact on tenancy and work , I think the IVA is the best option and steps change are a charity that seem to have good reviews ? Just need to talk some sense in my DP ! Feel like everything's always up to me to solve ! All debts are in my name as well

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purplecloud123 · 10/02/2015 17:09

Stepchange Voluntary Arrangements are very highly regarded in the industry. I certainly wouldn't go anywhere else if they have recommended an IVA for you. You don't qualify for a DRO and the DMP term just seems too long now.

Original poster
Slowlygoingunder · 10/02/2015 17:16

My thinking too Purple ! Just need to get the ball rolling asap

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TickleMyTitsTillFriday · 10/02/2015 18:11

Definitely Stepchange op. They are a charity so all fees are included in your IVA. You can have a joint IVA with your partner if you both have debt. Just think 5 years and you could be debt free!

Original poster
Slowlygoingunder · 10/02/2015 19:04

Well he's still against it ! God he's too bloody old to believe in the money fairy !! Il get my own way in the end ;) said to him other people manage without CC ! That s what got us in mess in the first place !! Daughters panicking about her car ! ( finance in my name so has to be included ) can they take the car back ? A year to go with payments . She's convinced they can take it back ! Surely not ? It's finance not HP ?

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avocadotoast · 10/02/2015 19:08

If it's unsecured (eg a personal loan) then they can't take the car back. It'd be just like if you'd taken a loan out to buy a holiday, they wouldn't be able to take that back. So tell your daughter not to worry.

Good luck, OP. It's never an easy decision to make but there are pros and cons to both solutions. You might as well find out more about the IVA and then you can decide from there.

Original poster
Slowlygoingunder · 10/02/2015 19:22

The garage arranged it through ford finance ?

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avocadotoast · 10/02/2015 19:37

Do you have a copy of the paperwork? If it says "hire purchase" or "conditional sale" then it'll be secured against the car. If it says "personal loan", "fixed sum loan agreement", or "credit agreement" then it won't be.

If you don't have the paperwork you need to call the finance company to ask them. They are sometimes tricksy though and they might try and make it seem that the debt is secured when it's not. If you're not sure, ask for something in writing.