{"id":10881,"date":"2010-10-14T11:19:17","date_gmt":"2010-10-14T10:19:17","guid":{"rendered":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/?p=10881"},"modified":"2019-08-02T11:29:44","modified_gmt":"2019-08-02T10:29:44","slug":"difference-between-dmp-iva","status":"publish","type":"post","link":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/difference-between-dmp-iva\/","title":{"rendered":"Difference between DMP & IVA"},"content":{"rendered":"\n

From the debtor\u2019s point of view the attraction of an IVA (Individual Voluntary Arrangement) is the length of the sentence, so to speak. In a DMP (Debt Management Plan), the sentence (i.e. the likely duration of the DMP) must seem to many debtors that it is going to last forever – without hope of parole.<\/p>\n\n\n\n\n\n\n\n

DMP or IVA \u2013 The Big Difference<\/h2>\n\n\n\n

Most IVAs last no more than five years although they can be as short as one year or even less in the case of what is sometimes called a \u2018one-off\u2019 IVA. This occurs when the debtor is able to offer a lump sum to creditors without the promise of ongoing monthly contributions. The lump sum may come from the sale of property or from a family member who is willing to assist the debtor.<\/p>\n\n\n\n

\"DMP<\/figure>\n\n\n\n

The attraction for the debtor is that creditors can \u2018take it or leave\n it\u2019.  If they take it, the duration of the IVA can be quite short. If \nthey leave it, the lump sum offer can be withdrawn and a five years IVA \ncan be offered based on monthly contributions from income only.<\/p>\n\n\n\n

Debtors who enter a DMP on the other hand can expect to be making \npayments to their creditors for many years if they are to repay the debt\n in full, although some creditors may agree to reduce or forego interest\n and penalties for a period of time. Nevertheless although a DMP can be a\n relatively attractive solution for creditors the long duration is a big\n disadvantage for the debtor.<\/p>\n","protected":false},"excerpt":{"rendered":"

There are quite a few differences between an IVA and a DMP, one being the duration of the plan.<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_seopress_robots_primary_cat":"none","_seopress_titles_title":"","_seopress_titles_desc":"","_seopress_robots_index":"","footnotes":""},"categories":[4,7],"tags":[],"class_list":["post-10881","post","type-post","status-publish","format-standard","hentry","category-debt-management-articles","category-iva-articles"],"_links":{"self":[{"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/posts\/10881","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/comments?post=10881"}],"version-history":[{"count":1,"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/posts\/10881\/revisions"}],"predecessor-version":[{"id":10891,"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/posts\/10881\/revisions\/10891"}],"wp:attachment":[{"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/media?parent=10881"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/categories?post=10881"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/tags?post=10881"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}