Debt Management Option

[j.k]

Could anyone help me on whether debt management might be a better alternative to an IVA. For example if someone owes £39,600 in total (includes interest) could they pay £550 x 72 mths or £660 x 60 mths thereby paying in full or other combinations. Also say increase monthly contribution by £30 year 2, again another extra £30 year 3 etc. Please forgive me but I am so unclear on this. Your help would be appreciated.

[JulianSampson]

Hi JK, and welcome

There is another excellent thread on IVA/DMP comparisons going on in this month's postings. I am sure Bright Oak could help you here..

Kind regards

Julian Sampson
Solicitor
Wright & Wright LLP
www.wrightandwright.com
See my article in Clean Slate magazine

[Andrew Graveson]

Good morning,

I think the key to the best way forwards is answering the question as to what you can realistically afford to pay.

Your creditors, whether you seek an IVA or DMP, will expect your best offer.

Could I suggest that you work this through and post the results?

Please remember that under an IVA the IP's fees will be deducted from the amount you contribute and interest will definately be frozen. Under a DMP the DMP companies fees (unless you use a fee-free provider) will be paid by you in addition to repaying your creditors in full, and interest might be frozen.

I'm also curious to know whether you are a homeowner, and if so, whether you have any equity?

Andrew Graveson
Mortgage Broker & Bright Oak Debt Management
andrew@brightoak.co.uk
www.brightoak.co.uk

[j.k]

I live with my father OAP who have no debts whatsoever and pay towards electric, rent etc.

[Andrew Graveson]

Thanks j.k.

What do you think would be your affordable monthly repayment amount?

Andrew Graveson
Mortgage Broker & Bright Oak Debt Management
andrew@brightoak.co.uk
www.brightoak.co.uk

[j.k]

Andrew
My affordable payment would be between £400 and £525 maximum

Regards Jeanette

[MelanieGiles]

With that sort of repayment Jeannette, you would not pay all of your debts off in full during a five year period, so ought to consider whether an IVA is a better option for you. Alternatively, if you could persuade creditors to stop charging you interest, payments of £525 would see all creditors being paid off in approximately 6 1/2 years, but longer if you choose to appoint a fee earning company to manage your payments.

Payments under bankruptcy proceedings would only last for three years and would be set at between 50% and 70% of your surplus depending upon circumstances - so if you have no assets which would be at risk under such proceedings, you may also wish to give some consideration to this as an option as well.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp