Two of the most common debt solutions that our clients opt for are DMPs and IVAs. They are two very different options and many people have to choose between the two.
How do you make such a decision? Here is our handy guide to see what is involved in each plan.
Individual Voluntary Arrangement
Written by Gemma on October 25th, 2011
Filed Under debt help, Payplan | Trackback | 8 Comments
Stuart saysYou suggest bankruptcy is a risk in a debt management Plan when it is much more of a risk in an IVA and an OFT requirement to mention that risk. You also say a minimum £100 disposable income is needed for an IVA when in practice no one would get an IVA at that level. Who wrote this ?
Gemma saysThis was written by myself and is based on our experiences.
Stuart saysAre you saying that in Payplan’s experience the risk of bankruptcy in a DMP is greater than in an IVA and that you also administer IVAs with payments of £100 a month ?
Gemma saysNo greater, however it is still a risk that is worth mentioning. It is a risk with IVA’s and we talk to all of our clients about any potential risks with any plans.
As a rule we do say that the minimum amount of disposable income for an IVA is £100.
Stuart saysHave Payplan ever administered an IVA at £100 per month ? Apart from the vulnerability to the slightest increase in priority debt outgoings over 5 years, it would barely cover your fees would it ?
Gemma saysYes we have, we would only ever do that it we felt that it was sustainable for the client.
Stuart saysDo you refund the fees if an IVA fails at that level or is all the risk on the customer ?
Gemma saysAll of the risks are explained to each and every client who enters into an IVA. We would never set up an IVA if we did not think it would be sustainable.
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