{"id":11278,"date":"2011-03-08T16:31:21","date_gmt":"2011-03-08T16:31:21","guid":{"rendered":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/?p=11278"},"modified":"2019-08-08T16:33:03","modified_gmt":"2019-08-08T15:33:03","slug":"iva-vs-dmp","status":"publish","type":"post","link":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/iva-vs-dmp\/","title":{"rendered":"IVA vs DMP"},"content":{"rendered":"\n

There are many available options for people who are struggling with \ndebt. Debt management comes in many different forms, and can be hugely \nhelpful with troublesome debts. However there are situations in which \nyou need to use the law to protect yourself from bankruptcy, in which \ncase using an IVA may the better option.<\/p>\n\n\n\n\n\n\n\n

Range of services<\/h2>\n\n\n\n

Debt management organisations operate up and down the country, and \ncan give advice as well as other services. If you\u2019re having difficulty \ndealing with your creditors direct, debt management professionals can \nnegotiate with them on your behalf. Many of these organisations offer \ntheir services free of charge, but it\u2019s worth checking any possible \ncosts before going ahead with anything.<\/p>\n\n\n\n

\"Credit<\/figure>\n\n\n\n

Debt management services can also set up payment plans for you, and \nsome offer systems whereby you simply pay them whatever you can afford \neach month in one single payment, and they handle the distribution of \nthese funds to your various creditors in a way that will best handle the\n debt that you owe.<\/p>\n\n\n\n

Insolvency<\/h2>\n\n\n\n

If your debt situation is serious enough that bankruptcy may be a \nreal possibility, you need to consider speaking to an insolvency \nprofessional. Insolvency Practitioners specialise in these matters, and \ncan help you to work through your various options, with any luck \navoiding bankruptcy.<\/p>\n\n\n\n

An IP will have a close look at your money situation, and may advise \nany number of different things. If you have assets, they may advise \neither selling or releasing equity to ease the burden on your debts. If \nyou have substantial unsecured personal borrowing, such as credit card \ndebt, they may indeed recommend using an Individual Voluntary \nArrangement.<\/p>\n\n\n\n

IVA<\/h2>\n\n\n\n

IVAs are a way of offering an alternative payment plan for debts that\n you cannot manage. If the alternative is likely to be bankruptcy, the \ncreditors realise that it is in their interests to accept an IVA, which \nis also preferable for your own future financial stability. Through an \nIVA, you pay what you can afford towards the debt, rather than what is \nrequired by your current credit agreements. <\/p>\n\n\n\n

Income<\/h2>\n\n\n\n

To use an IVA, your income needs to be sufficient to make the IVA \npayments each month. Similar to debt management, you make one payment \ntowards the IVA, and your IP handles the distribution of this to the \ncreditors involved in the IVA. If creditors are signed up to an IVA, \nthey cannot take any legal action against you during or after it, \nproviding you keep to the arrangement.<\/p>\n\n\n\n

Choices<\/h2>\n\n\n\n

Many debt management options can help with debts that you are finding\n difficult. However if those debts have landed you in a position where \nyou simply can no longer manage them, it\u2019s best to get insolvency advice\n and to consider such measures as IVAs to really get things under \ncontrol.<\/p>\n\n\n\n

Whichever option you end up exploring, the importance of getting \nsound financial advice cannot be overstated. An Insolvency Practitioner \nis required to give you trustworthy guidance, and is best placed to use \nthe law to protect your position.<\/p>\n","protected":false},"excerpt":{"rendered":"

There are many available options for people who are struggling with debt. Here we compare an IVA to a Debt Management 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-11278","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\/11278","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=11278"}],"version-history":[{"count":2,"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/posts\/11278\/revisions"}],"predecessor-version":[{"id":11293,"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/posts\/11278\/revisions\/11293"}],"wp:attachment":[{"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/media?parent=11278"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/categories?post=11278"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/tags?post=11278"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}