dMP or IVA

[Slowlygoingunder]

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)

Thanks , il dig it out tomorrow , sure it's a loan fingers crossed

Mmm sure its a credit agreement ! It will be upstairs somewhere!

Hi slowly if the debts are in your name then surely it's your choice in how you deal with them ? Hopefully your husband will see that this is the way forward good luck

Thanks :) he does mean well in a wierd way ;) just worried about screwing the future up for me but really it's scewed if I dont ! Men ... ;)!!

Have a look at the iva forum, you'll probably find the car answer there and probably some success stories that may convince your DH.

If the debts are in your sole name then it's your decision. A DRO is for debts under £15k, not £1500. That or bankruptcy may be a step too far but it is unusual nowadays for either to affect tenancy agreements or your employment contract although it is of course necessary to check your specific agreements.

As for an IVA, you need a licensed insolvency practitioner to act as nominee and if creditors approve the arrangement, to act as supervisor. Any IP will discuss how their professional costs and expenses will be paid with you but if the IVA is going to be based on income contributions, it is typical for the supervisor's fees to be deducted from those contributions.

Good luck deciding what to do.

I've gone bankrupt and it didn't affect my tenancy or employment whatsoever. Was the best option for me as it meant clearing my debts within a year, without repayments, as opposed to several years' worth of having to pay back under an IVA. So it cost much less overall, even with the huge bankruptcy fees. Still kept my debit card and was able to be a second cardholder on DH's credit card. But if Stepchange recommended IVA or DMP to you then there will probably be a reason why they didn't suggest bankruptcy - I would trust their advice.

I kept my finances separate from DH's and he didn't have any input in my decision. Your finances are up to you, especially if you've been careful to keep things separate. We even have a mortgage now (only in his name) as his own credit rating was unaffected.

Try and avoid Debt Management as there are usually a lot of fees involved. Even if you use a charity you will still get hassle from creditors as its an informal arrangement. If you can afford it best off going for an IVA as its a formal arrangement and legally binding whereas DM isn't. You will also likely keep your assets. The only other option is bankruptcy but get advice first as you will be obliged to put your assets in to clear the debt.