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.

Debt Management Plans

  • This is an informal arrangement between you and your creditors
  • House could be at risk as creditors can force Bankruptcy or apply to the court to secure the debt against your property.
  • Legal action is possible.
  • Credits can still make contact with you regarding your debts.
  • Creditors can change their minds about the repayment plan at any time.
  • Flexible repayment plan.
  • Repay all of your debts plus interest and charges.

Apply for a DMP

Individual Voluntary Arrangement

    • House is safe as long as you maintain repayments.
    • You would usually need a minimum surplus of £100
    • Legally binding agreement so creditors cannot pursue any further legal action.
    • Creditors can only contact you when sending annual statements
    • Once your proposals are approved creditors cannot change their minds.
    • Your proposals set out your repayment plan for the duration of the IVA, any reduction must be approved by your creditors.
    • Any debt remaining after your IVA is completed is written off.
    • You can hold most official employment roles whilst in an IVA that you wouldn’t if you were to go bankrupt.

Apply for an IVA