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Hi. I currently have debts totalling about £37000. I am a council tenant, & my only equity are vehicles aged approx 15yrs. I'm married with 6 dependants.I approached a company about the repayment problem i had & they suggested a DMP. I've so far made 3 payments to them as agreed of £338pm which is supposed to take about 9yrs to repay, but the creditors have charged me as much again in charges & interestalong with a barrage of threatening letters. In my opinion, this DMP is not working as i was advised, so wonder if i'd be better off with an IVA? Please can you advise? Regards,

Hi derek and a warm welcome to the forum

I can understand why you are finding a DMP unworkable, with the level of debts you have. Are you finding the £338 affordable, as this would definately fund an IVA so long as you do not owe anything to HSBC or Northern Rock.

Why did your debt company advise you to do a DMP rather than an IVA? And have you also considered bankruptcy proceedings, as you have no assets which would be affected in such scenario?

I think that an IVA would be better than the DMP - simply to buy you certainty and a known exit route in 5 years time, however bankruptcy is also very much an option. Can you list out your creditors so that I can advise further.

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

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

Derek
Your case highlites the down side of debt management plans,the interest keeps piling on and the letters keep on coming.You end up on a neverending treadmill,so I suggest you look into an IVA because interest will stop and so will the letters plus it will last only 5 years.
regards

Andy Davie
IVA.co.uk Spokesperson and site manager
(aka Neverending)

Please check out my blog: http://andydavie.blogs.iva.co.uk

View my profile here:
http://www.iva.co.uk/andy_davie_profile.asp