phone up each of your creditors and say 'look I am thinking of applying for an IVA to pay back 30%-35% of the total amount owed to all creditors. However if you could agree cutting 50% of loan now then I can pay that back over 24 months'. The incentive is that they would get back more now then if i went for an IVA (with the other added costs that they'll incur). Has anyone done this before? any experience? I've got to go for a major op summer 2013 and I want to be debt free before then as I have to give up work for a fairly long period after that....
I always think that anything is worth trying, and in this case, you could arrange your own DMP, rather than using a company.
The only downsides could be that they more than likely will still add interest to the balances and that you will not be protected, meaning that you will default, and they could cancel the arrangement at any time wiothout much notice.
Have you spoken to any DMP companies at all ?
Started IVA 27th Feb 2012 - Due to complete 27th Jan 2018 !!
Full & Final submitted and accepted 30th March 2015, paid 10th April 2015 - 3 yrs 1 month into IVA
Completion Certificate received- 30th April 2015!!
AC1975 I understand your theory but when you consider that IVA requests can and are refused at times and also that not all IVA's receive 100% of creditors acceptance, it makes your theory less likely in practice. Agreed you may get one or more to accept your proposals but where you are left with one or two who may not accept it could prove a fruitless exercise. Added to the fact that with an IVA you have a court registered seal of approval/agreement, however, with a homemade solution you will not have that peace of mind.
Good Luck.
Last edited by Pennyless on Wed Mar 07, 2012 5:03 pm, edited 1 time in total.
I came into this world with nothing and still have most of it left!
I think the problem is there no certainty from your creditors that you will pay, if you had the money to offer as a lump sum now then fair enough, but saying you will pay this over the next 24 months is a bit pie in the sky as far as your creditors are concerned, plus they have no guarantee you are paying as much as you can afford to pay so I doubt they would entertain the idea.
With an IVA, as much as you are legally protected, they are also secure in the knowledge that your IP is ensuring that you are paying back as much as you can afford and they will be supervising you closely to ensure you stick to the legal rules, also your plan takes nothing like windfalls/equity/assets etc into account
i've been on DMP with initial debt of around £18k. Have paid about £12k into potsince 2009. Fell seriously ill (life saving op). Became dpressed etc.Now I check to see that i still owe £13k because of interest etc. I'm really fed up. Wish i started IVA rather than DMP (I was advised against IVA by the DMP provider who is one of the big free ones). I probably would have been debt free by now.
My main concern would be the legal protection side of things. If one of your creditors changed their minds or were taken over by another company, would you be protected. I doubt this very much. I would be asking the question as to whether it is possible to do an IVA over a shorter period of time if I was in your shoes, as maybe you have extenuating circumstances surrounding your health.
I take it you intend to return to work after you recover from op reversal.
You could propose an IVA to protect you and freeze interest and charges,with a payment break pre-arranged for your recovery period,ie pay for 24 months,take a year out then resume payments? Its not going to get you debt free before your OP but other than a lottery win nothing else would get you debt free by then either.
Worth a punt I reckon.
Paul
Discharged today the 8th feb 2012. View is much brighter now.
Continuing to rebuild our credit worthiness.
