3 years ago I had debts of £29,000. I was paying a DMP company for 12 months when they advised me to change to a IVA. I have been paying them a further 2 years. I have decided to sell the family home and have ask for a settelment figure they are quoting £30,200 as the outstanding balance. how is it thay after 3 years of payment i now owe more than i started with.
regards Rosemary
There is the very real possibility that, during the DMP, they were still adding interest and charges -- which would have all gone into the IVA. So the debts going into the IVA could well have been more than those you entered the DMP with.
Once in the IVA, there will be added fees, typically, up to £2000 Nominees fee then 15% of payments. But, of course, no more interest will have been added.
If you are now looking to pay 100% of the debt there might be a charge for statutory interest at 8%. Most modern proposals exclude this and many IP's get this requirement removed if it was originally included.
I would ask for s written, detailed, breakdown of how they have arrived at this figure.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
I think it is very likely to be IP fees and also when switching from DMP to IVA creditors may have claimed a higher amount with any interested added back on top of the DMP debt
I feel your pain as I was in the same situation.
IMO there is really no point to DMP's, I learned this the hard way, what is the point if you are still being charged interest and your debt is increasing?
There should really be something done about this.
you should be much better off with your IVA, but if you have any problems, this is the place to come.
Do not assume that the IP's are always right, if your not sure, ask here.
