www.iva.co.uk

Hi Guys!

Well, I have now decided that an IVA is not right for me - thanks to everyone for your advice and info.!

As I am going to Canada for a year in January 2009 for year, maybe for good, I just do not feel that it would be right to enter into an IVA when there is a good chance it will fail.

So, I think I will go into a DMP instead. I know this is an IVA Forum and I apologise, but I was wandering whether anyone might be able to answer the following questions for me please re. DMP's:

1. Would I get to keep my assets / savings in a DMP? E.g. my car, laptop, camera, and I also have £500 cash saved up.

2. Would I have to declare my 2nd P/T job? The work is very irregular - I have not worked there for 2 months now but may do in the future?

3. I currently pay into a Local Govt. Pension SCheme which comes straight out of my wages. I also have about £30 deducted from my wages each month for a Work Bike Scheme which is Tax and NI free. Would I have to stop making payments into these?

4. What if my situation changes e.g. change job / lose job / more pay / less pay - would I be able to continue paying into the DMP?

5. What about when I go to Canada? Would I be able to, or be expected to, continue paying into the DMP, and how would this be done?

6. Would I be able to keep paying for gym membership / have a contract mobile phone / have 'going out money'?

7. What if I can no longer pay into the DMP? Is it then BR?

8. Is there a charge if the DM 'fails'?

9. Can my Creditors, or will my Creditors still keep hassling me during a DMP?

Sorry for so many questions - I hope someone may be able to help me with this!

Cheers!

Hi Snowman,

I can't answer all your questions, but some I can.

You can continue to pay into your pension scheme. I imagine the bike scheme would be the same.

Your car (unless it is a Ferrari), laptop, camera won't be affected.

You would be expected to continue paying if you went to Canada? If you didn't I imagine you could be made bankrupt (but not too sure about how that would work.)

You could still have a mobile contract. Not sure about the gym membership, but you can have spending money. It's not as rigid as an IVA.

As for your creditors, they can still phone you. I was DMP for 18 months, but once it was set up, we just had phone calls every 6 months asking us if we were able to increase our payments. Once we told them nothing had changed they went away quite happily!

I imagine someone else will come on and answer your other questions.

Hi Kallis3

As always - thanks very much for your info.!

Nah, it's not a Ferrari unfortunately! It's a Golf, worth about £1,500 max.!!!

I am thinking of going with Payplan for the DMP, but th repayments they proposed seemed quite high - more than in an IVA...

That surprises me. My DMP was with a different firm and me and hubby paid £645 a month, £113 of which went to pay the firm and not to the creditors.

We then approached Payplan as they do not charge for DMP and so all of our money would have gone to paying off our debts.

They suggested the IVA and we pay £615 per month, and they quoted us £590 for DMP.

I don't think there is a charge if your DMP fails. It's not the same as an IVA, you would just revert back to having interest and charges on the account and the creditors on your back again.

In simplistic terms, there is little scrutiny of assets or expenditure levels in a DMP - especially if you use an independent firm rather than one funded by creditors. You are in control of your ongoing finances and, whilst the spirit of the arrangement must be to try and pay as much as you can, you will actually find that these arrangements are quite flexibile. Just bear in mind that the lower the payment you make each month, the longer the eventual repayment period will actually be.

Hi!

Thanks again for your replies!

I originally went to quite a few firms regarding IVA's and they seemed to take into account a lot more possible expenditires than Payplan did, so maybe if I go back to Payplan and add some more expenditures then the monthly payments might be reduced somewhat?

Or maybe I could try someone else for a DMP, maybe someone who is not funded by the Creditors - does anyone have any suggestions?

Although I am going to enter into an IVA, there is still a chance that it may fail and I still may yet have to go down the BR route, but at least it sounds like with a DMP there is more room to manouvere.

So, in a DMP, am I right in thinking that they do not look into one's finances as rigorously as they might in an IVA or BR?

Hey snowman, try Andrew Graveson www.brightoak.co.uk He comes highly recommended. Good luck, I'm so jealous, I want to go and live in Canada! X

Yes - I can concur that Brightoak are a very reputable company to work with and definately worth a call.

Hi!

Thanks for your replies again! Sorry - my last message did not make sense - I meant to say DMP not IVA.

I think I will contact Brightoak and compare them with Payplan.

Yes, with regards Canada I am very excited - it feels so right - I have wanted to go there for about 10 years now - I got some good news last week - I have been accepted for a Work Visa so that's one hurdle overcome...but the biggest dilemma is sorting the debts...

Cheers!

Ah snowman, I wish you all the luck in the world, for your adventure to come and sorting your debts out once and for all. X

Canada sounds wonderful snowman! I hope you manage to get everything sorted ok.

Thank you very much!

If you ever get out to Canada and want some free snowboard lessons let me know!!!