www.iva.co.uk

Hello all,
pretty new to this, but I am reading as much as I can on this
site, and I am on the verge of BR, but am I right in thinking
that people on a DMP have been misinformed.

I know when I first realised I was in real trouble financially,
my first port of call was google search, and being in trouble,
and in a panic, I took up the first phone call that sounded
credible.

I have since realised that this is not realistic, and because
I cannot proceed with an IVA because of my circumstances, as I have
been told it will fail within 12 months, I now face BR.

I have now wasted 10 months of DMP, and struggled so badly, maybe
because of pressure, or maybe because I was not wise enough, I
dont know, but from reading this site messages, it would seem
a DMP plan is a waste of precious money, and people should be
advised from the word go, that IVA would be the sensible route,
generally speaking......

Am I alone in this thinking, or have I got this totally wrong..

DMP's do have a part to play in the debt recovery marketplace, but are generally more suitable for people with lower debts and disposable income.

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

hi worry wart and welcome to the forum,

what do you mean people on DMP have been misinformed? people enter a DMP as a short term solution, ie awaiting IVA process or where there debts are too low, or the client has affordable disposable income which means they can pay their debts off with out the inclusion of an iva, why will your iva fail?
i tried for an iva which was rejected,in hindsight i am glad it was as the monthly payment figures were not affordable to me,,once it failed i entered a DMP until i was certain in which route was the best for me, i wanted to pay as much back as reasonably practicable for my circumstances regardless of the length of time but had to be reasonable to myself, i went BR in april which was the best thing i could do with my circumstances and opted for a fresh start, don't get me wrong this is not an easy decision, especially in light that i have assets to protect and 3 children to think about.

you really need to weigh up your circumstances and only you can decide what is the best solution for you, do not be pressured into anything that will not be affordable long term.

good luck
kerri

Please view my blog at: http://scaredkez.blogs.iva.co.uk/

worrywart wrote:

Hello all,
pretty new to this, but I am reading as much as I can on this
site, and I am on the verge of BR, but am I right in thinking
that people on a DMP have been misinformed.

I know when I first realised I was in real trouble financially,
my first port of call was google search, and being in trouble,
and in a panic, I took up the first phone call that sounded
credible.

I have since realised that this is not realistic, and because
I cannot proceed with an IVA because of my circumstances, as I have
been told it will fail within 12 months, I now face BR.

I have now wasted 10 months of DMP, and struggled so badly, maybe
because of pressure, or maybe because I was not wise enough, I
dont know, but from reading this site messages, it would seem
a DMP plan is a waste of precious money, and people should be
advised from the word go, that IVA would be the sensible route,
generally speaking......

Am I alone in this thinking, or have I got this totally wrong..

You have to look at your personal circumstances, I had debts that greatly exceeded my assests equities etc.

So I opted straight for the BR route, my attitude was give them my assets to be rid of the debts.

I have been telling my story on different sites trying to give people the benefit of my experience, and time and time again keep coming across people who are trying to protect their house and car from the repo man with unrealistic DMP's etc.

One lady I spoke to was trying to protect £30k equity in house from £100k debt. Now the £30k was percieved value from the spotty herbet estate agent valuing it after a couple of coats of looking at. She might not realise this figure in the real world housing market.

So you could argue that her house might go up in value in 5 years (IVA) but could also go down, not a great climate at the moment. If repo'd, they cetainly wouldn't realise anything like this figure.

Another guys only concern was that his precious car would have to go and he couldn't be seen in anything less than this.

I personally bought a £500 van, got clear of my debts through BR, sat through my 1 year bankruptcy, got used to living without credit, now save up for things (weird concept nowadays) or make do.

I am debt and credit card free and have never been happier, rebuilding
my life again (without credit)

I was funding my business with credit, my life with credit, my holidays with credit, christmas with credit. I took a rather large bad debt in my business and the whole lot spiralled out of control.

So now I am still self employed, working from home no premisis or staff, If I cant afford it I don't buy it, I have a caravan which the kids love but if we can't afford to use it we don't, and we save for xmas presents and have realistic outlooks.

There is life after BR and personally if i had taken the IVA route I would have still been up to my neck in payments that left me little or no money each month until July 2009.

Weigh up your Individual situations people and make your judgement based on what you have to lose and what you have to gain, not your creditors also be aware that some IVA companies have a bias towards IVA's because they make money from it.

Its your life take back control.. Good luck...