If I could avoid an IVA with a DMP running for up to 10 years then I think I would go for that. My big concern is that creditors wouldn't play ball for the whole term and I would end up in an IVA anyway. The protection that an IVA offers is attractive even at the cost of having to be formally considered insolvent. I'm looking for stability and a quiet life.
I would imagine it does refer to that, but if it does come in, it won't be until next year.
You will still find that DMP's will take a lot longer than IVA's to deal with.
Mine and hubbys would have taken 19/20 years to clear, and that was with the interest and charges being frozen!
Personally, I prefer to be insolvent and debt free in 5/6 years than have it drag on that long!
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
Statutory Debt Management Schemes...
The Ministry of Justice/Insolvency Service recently held a Stakeholder Event about their thinking
on Statutory Debt Management Schemes. If these come to pass – which currently looks
highly likely – they will radically change the nature of our industry, not least because only
authorised organisations will be able to offer them. The present intention is to issue a consultation
paper on Tuesday 14 July, for which there is likely to be the minimum 12 weeks for responses
before proceeding, should Ministers agree, to putting the Scheme(s) in place in April
2010. Stakeholder consultation meetings are planned in London and Manchester in the week
commencing 14 September.
It is important that members get involved in providing feedback for this consultation. The Debt
Resolution Forum will be contributing to the consultation and urges members to do the same
on their own behalf.
Our aim will be to see a statutory Debt Management Scheme approved which provides:-
• Protection from creditor action
• Automatic freezing of interest and charges
• Statutory acceptance of income and expenditure guidelines which are reasonable and
allow an element for contingencies and to motivate the client to perform
• Protection for client funds
• Protection for clients in terms of excessive fees being charged , allied to a commercial
approach that allows reasonable fees and promotes competition
• Pragmatic accreditation and regulation
It is likely that the price for this will include transparency on performance and distributions to
creditors.
Even with the interest frozen, it will sometimes take people a lot longer than 5/6 years to pay off their debts, so I would still recommend an IVA in those circumstances.
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 just wonder how the BERR will get around this procedure remaining silent, when they insist that IVAs be publicly advertised. Will there be a Register of Debt Management Programmes I wonder available for view on Google?
Perhaps it should go on the Insolvency Register the same as IVA's and Bankruptcy.
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 agree - nothing should be accessible to the public. If companies want to look up details, they should have to pay. The general public don't need to know.
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 agree there should be no publicity for anyone in financial trouble. With DMPs it would be even more tricky. Would it only apply to those using DMP companies whether feepaying or not? What about those people who do a self administered DMP? How long do you have to be in a DMP before it is published, so would it count if you were making reduced payments while sick or temporarily unemployed? The answer is not to extend publicity but to restrict the availability of information regarding those on financial trouble to professionals and bankers who need it.
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
