What is the difference between a debt management plan and an IVA?
A Debt Management Plan (DMP) is an informal arrangement between an individual and their creditors.

Debt management plans are not binding agreements between debtors and creditors and often involve full repayment of any outstanding debt over an extended period of time.

In a debt management plan an individual is essentially requesting a reduction or complete elimination of interest and other costs charged by creditors along with a reduced monthly payment. Individuals can attempt to put in place a DMP themselves or approach a Debt Management Company to undertake this work on there behalf.

Debt management plans can involve a lengthy repayment period and require ongoing negotiation with creditors.

IVA's are a formal agreement and legal procedure supervised by a Licensed Insolvency Practitioner. They are a binding agreement between debtors and their creditors. Typically IVA's last for a 5 year period. At the end of this any unsettled debt is wiped clear by the individual’s creditors.

For an IVA to be accepted 75% of a person’s creditors must vote in favour of the IVA proposal as an alternative to a debtors bankruptcy petition.

Creditors take a commercial decision when voting for an IVA referred to as 'pence in the pound recovered'.

How much will I have to pay into a DMP and for how long?
This very much depends on your circumstances, and the views of your creditors. You would need to complete our enquiry form to set out what your circumstances are. Or give us a ring on 0800