www.iva.co.uk

The OP has deleted the original question -- but was basically asking if an IVA or a DMP would be better in his circumstances. Debt would have been repaid, by either method, on paper, in about 5 to 6 years........

There is an element of certainty with an IVA, both in the term and in frozen interest, which you don't get from a DMP --- from the creditors point of view, though, they will get back substantially more in a DMP, without it costing you more. Stepchange do not levy fees on a DMP but will with an IVA.

Thanks foggy just not sure which would be the best way forward

Fri Oct 04, 2019 2:03 pm19ryanh93 wrote:

Thanks foggy just not sure which would be the best way forward

A DMP would be potentially less damaging to your credit record, in the short term, providing all creditors agreed to it and stuck to it --- they are free to back out at any time. It would also be less financially intrusive and you wouldn't be tied to losing extra income (though regular income will still be reviewed each year) or windfalls into the arrangement.

It is a tough call, but, if I were in your shoes, I would be looking at the DMP more closely.

You would also be swerving equity release and restrictions on your property and, of course, the fact that one of your creditors, HSBC, are IVA averse (that said, I have actually seen them agree to them in the past).

They agreed to mine.

It depends on your circumstances, how much debt you owe, what assets you have, what disposable income you have etc.

19ryan93 has a house which is mortgaged.

Mon Oct 07, 2019 8:30 amLisa Thomas wrote:

It depends on your circumstances, how much debt you owe, what assets you have, what disposable income you have etc.

Hi Lisa.

As mentioned mortgaged house with about 15% equity. Owe around £43k with circa £650 surplus. Been told an iva would be approx 5y 6m and a DMP would be approx 5y 7m.

Your original post had been deleted so I couldn't see that, thank you.

A DMP will likely be cheaper than an IVA, although you might like to check whether interest can be frozen in a DMP.

IVA is legally binding so creditors cannot take action against you once in place, assuming you stick to the terms whereas a DMP is not legally binding so creditors can (although unlikely) still pursue you and take recovery action against you.

Mon Oct 07, 2019 11:15 amLisa Thomas wrote:

Your original post had been deleted so I couldn't see that, thank you.

A DMP will likely be cheaper than an IVA, although you might like to check whether interest can be frozen in a DMP.

IVA is legally binding so creditors cannot take action against you once in place, assuming you stick to the terms whereas a DMP is not legally binding so creditors can (although unlikely) still pursue you and take recovery action against you.

Yeah I’ve picked that up by people on here just trying to work out what’s going to be the best way. A DMP sounds more like the way to go first and if anything goes south then an IVA is always an option.

Doesn’t make sense to me to go for an IVA straight away for a month less payment.

Does that make sense?

Ultimately the choice is yours and you have to think long and hard about it.

So I’ve decided to go down the DMP route in the first instance. With the possibility of an IVA on the cards if a DMP doesn’t work out.

Hopefully the creditors will stick to the DMP

Thanks for all your help

Fingers crossed!