If I enter a debt management plan, and the creditors hand money over to collections agencies. If at later date and my pay does not rise as forcasted over the next few years, will i still be allowed an IVA but this will be with the collection agencies not the creditors. Are they any toughter at IVA meetings.
I guess it depends if the creditors sell on your debts to a third party. From some of the post I have seen, there are creditors who seem to sell debt on to the same company fairly quickly and others don't but may still employ a collections agency to assist with the recovery.
Perhaps if you list the creditors, someone will confirm if they had their debt sold off and who to?
With regards to the likely voting practices with an IVA, some IP's seem to have good working relationships with pretty much all the collections agencies as well as the original Creditors. I Guess this is all down to who your chosen IP would be in the future.
As you are probably aware, a DMP is not legaly binding and therefore a creditor may at any stage decide to add charges, interest or pursue a legal claim for the repayments. However I would like to think this unlikely as they should want to work with you to resolve your situation, which remains in their own best interests.
Anyway, keep thinking poitiviely and I'm hoping you don't need the IVA as you get it all sorted via the DMP.
Lots of people try DMPs first and then decide that an IVA is a better option - and there is no problem with changing your mind, but justification will need to be given to creditors who may have got used to receiving monthly payments and be reluctant to give them up.
Remember that the DMP has no legal status, so creditors are free to pursue you in whatever manner the elect, but in reality this does not happen very often once a DMP is in place.
We had no problem at all changing from a DMP to an IVA (bad advice given in the first place though - should have been an IVA from day one!).
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
I had no problems with the DMP at all, interest and charges were stopped from day one.
However, it was going to take about 20 years to pay off and neither of us is getting any younger! We were told that we weren't eligible for an IVA when we took it out, yet 18 months down the line we decided to change company's as we thought with Payplan the creditors would get more money back, and it was them who suggested the IVA.
We pay less into that than we did in the DMP.
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
Ive been quoted 280 a month which would take 11 years but as my wages goes up quite a bit each year i will keep upping this and I guess i could be done in about 6-7.
Although tempted by IVA im scared in my nature of work about sudden large outgoings that may be unexpected, professional fees, courses etc.
I may try a dmp then switch if its not great.
At least we have options.
If your DMP is likely to last just 6-7 years if you can pay in extra, then I would stick with that. It will have less impact on your employment and you will be able to pay back your creditors in full.
Make sure that all interest and charges are frozen though as that can impact on the time it takes to pay back.
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
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
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
MelanieGiles wrote:
Lots of people try DMPs first and then decide that an IVA is a better option - and there is no problem with changing your mind, but justification will need to be given to creditors who may have got used to receiving monthly payments and be reluctant to give them up.
Remember that the DMP has no legal status, so creditors are free to pursue you in whatever manner the elect, but in reality this does not happen very often once a DMP is in place.
I am not sure that switching from a DMP to an IVA if circumstances change requires too much justification. Length of time of a DMP and Interest freeze or not are the usual justifications, as is putting the figures through the Mondo Matrix to see what is owed with or without interest freeze over a 5 year period usually provides adequate justification.
Regards, David Mond, Insolvency Practitioner for over 46 years. Personal Insolvency Practitioner of the year 2012, Personal Insolvency Practitioner of the year finalist 2013 & 2014 awarded by Insolvency & Rescue Magazine and 2015 finalist for Personal Insolvency Firm of the Year.
But those are advantages for the debtor David, and not creditors. Creditors may not see it the same way you do - and often would prefer a long-term repayment plan to continue.
