IVA v DMP

Karnevil · 10th October 2006, 12:42

can someone explain the difference between an IVA and a DMP (eg through payplan or CCCS) to me ? Thanks, Karne x

sequenci · 10th October 2006, 12:46

DMP = Informal arrangement via a debt management company to pay back all your debt. you make a monthly payment to your DMP provider who distribute the money on a pro-rata basis amongst your creditors. Payplan and CCCS offer FREE DMPs.

IVA = legally binding agreement which typically lasts for 3-5 years. You enlist the services of an insolvency practitioner (they charge a fee!) they will hold a meeting with your creditors and so long as 75% by volume agree, it will go ahead. It is negotiated that you pay back a percentage in the pound of the debt (so some will get written off), this can be as low as 30p in the Pound. Sometimes the agreement will involve you having to realise some equity from your property (if you own one). it is worth shopping around for a good IP.

hope this helps, onyl a very brief discription and i'm sure people will expand on it!

maybelline · 31st October 2006, 19:44

National Debtline also offer a free debt management plan.

Some companies charge around 15%!!!

Hamilton Locke is one that does charge.

sequenci · 16th November 2006, 13:07

Quote:

Originally Posted by maybelline

National Debtline also offer a free debt management plan.

they actually refer people to cccs or payplan but do all the seeting up

maybelline · 17th November 2006, 08:41

that is correct, they refer

maybelline · 4th December 2006, 13:29

is it usual to be paying for unemployment insurance policy with a DMP, offerred by the DMP company even though looking at the clauses it does not cover much and is costing over £60 a month that could be going to the debt?? I am thinking of suggesting cancelling it and transferring the DPM to one recommended and free of charge, Hamilton Locke are also charging 15% permonth on the payments?? I feel this is madness.

Tristesse · 4th December 2006, 13:40

Change without delay that is disgusting amounts to pay and hinders reducing the debt. Give CCCS a ring and have it changed over, friend of mine did it the other month and had no problems with the change over. 15% how is that justifiable I negotiated with creditors myself and although difficult i'd never pay someone 15% of the £80 i pay back a month.

blackrain · 4th December 2006, 15:27

Does anyone know which Insolvency Practitioner CCCS recommend? Having trouble getting through to CCCS and need to get ball rolling quick.

blackrain · 4th December 2006, 15:28

p.s. sorry for jumping on your thread Karnevil

maybelline · 4th December 2006, 15:34

thanks, I thought it was awful too!

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