Whilst not wanting to appear to be the hard done to party here, I am amazed by the approach of some creditors to dealing with debts owed to them. I have been trying to resolve my creditor issues without the intervention of a 3rd party, as a matter of principal. I subscribe to the fact that if I owe money I should pay it, however it seems all my attempts to resolve through reduced payment plans with creditors is not really worth anything. I spoke to one of my creditors this morning who simply said it would be "easier if just did an iva" !!!! Not sure if he was trying to help or not, but it seems that although an IVA will provide my creditors with potentially less money longer term they dont appear that bothered !!!!!
I take the point you make; I tried to resolve mine but all I got offered was more and more money - what I could not get into their heads was the fact thatI was having difficulty paying what I had to pay - so how could I pay more? My bank was the worst offender - offered £50,000 on top of what I already had! Hence my request to Melanie Giles to help me sort the problems which she did with alacrity to the benefit of my creditors, my family and myself.
Thanks elv, to be h onest I have been really torn between an IVA and a DMP but the DMP will take 15 years to pay off and that seems like a lifetime. I feel that I am almost at that point now where I will have to take an IVA to protect my future and my home from creditors who dont seem to see sense in trying to resolve to there benefit as well as mine
May I suggest you speak to Melanie Giles - my IVA was very difficult - a one off for several reasons but she got it through on first attempt when several other firms told me "no chance". If you look on www.iva.com you will find reviews about her and others - but she is excellent - in my view you could do no better particularly in the light of your employment.
For some reason creditors don't seem to be that interested in DMP's even though they will get a lot more of their money back.
There is a site which can help you set up your own DMP, it has proper template letters etc on there, and there are experts on the end of the phone if you need advice.
You could try that to see if your creditors would be happy.
Otherwise I'd advise you to speak to one of the professionals on here - it can't hurt and may actually help you in the long run.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
It may seem odd Snowmonkey but even though creditors do receive a percentage of their money in an IVA many prefer them to DMPs. There are a number of reasons;
1. Many banks do not have the facilities to deal with reduced payments and have to pass the debt on to debt collectors who charge a substantial fee for collection.
2. DMPs are not regulated whereas IVAs are legal documents and the IP has verified all the income, assets etc of the client.
3. In a DMP there is no legal protection so some creditors can improve their position by obtaining a charging order, attachment of earnings etc whereas in an IVA all creditors must be treated equally.
4. There is no recourse to a failed DMP as opposed to an IVA which could ultimately lead to bankruptcy.
5. In an IVA the IP will normally register a caution against the debtor's property which would make him/her aware of any attempt to sell or refinance. In a DMP there is nothing to stop a debtor from selling up and just disappearing.
There are numerous benefits to creditors from IVAs so do not be surprised when they suggest that you speak to an IP and reject your offer of a DMP.
Hi
Interesting points.
I always thought that creditors, in general, preferred debt management plans because they are not writing off any of the debt and it had a lesser affect on their bottom line compared to an IVA. When an account goes into an IVA the whole debt is written off the creditors books straight away.
However I think anybody faced with a ten year plus DMP would be far better suited to an IVA if curcumstances allow, this would be better for both the creditor and the individual.
Regards
My DMP was destined to last for 20 years, by which time I would have been in my mid 70's and hubby almost 80. There was no way I wanted to be saddled with that so an IVA was a much better deal.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Some creditors do prefer DMPs and as you say this is often to hide bad debts in their balance sheets and not to have to admit how much of their lending was toxic. Given that we now own the banks they should be obliged to come clean and admit exactly how much of their debts are irrecoverable.
DMPs certainly are a valid tool but I agree that anything over ten years is unfair on the debtor and also cannot be commercial for the bank to collect.
I sincerely hope you will be around in 19 years David, but no way would you want to be worrying about debt and repayments for that time.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Michael, to cut a very long story short - in the adjacent village lives a major shareholder of Barclays. He is helping our PP set up a helping hand for debtors in this area. However, because of the trouble some posters had with Barclays me included this individual asked some pointed questions at their AGM - one of which was how mnay IVAs have been accepted by the bank, how many DMPs have been accpeted and what is the value of the write offs?. Answer - detailed records are not kept! He did not believe them.
So do I Jan but according to the age of death of my parents and grandparents I have a little over 25 years left. I wonder if we shall be still chatting then. However, if not, I shall have your book to read!
I find it hard to believe also that banks do not know how much of their debt is fully or partially irrecoverable. However, I can understand why they do not want this information in the public domain. In fairness to Barclays they have not had to go cap in hand to the government to borrow our cash but the other banks have and should be forced to release the information. Barclays should publish too if only to give a true reflection to investors and shareholders.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
