Can I cancel a debt management plan?

leo45 · Joined: 27 Jun 2007 Posts: 1

I have been in a debt management plan for 6 months and the agreement only covers 3 of my creditors. I am paying 2 of them back separately because they didn’t agree to join in the agreement.
I don’t think the debt management is a good solution for me because I am still receiving calls from my creditor all the time, they have now started ringing me at work and it is getting me in trouble with my employers.

I am not sure if I will be able to stop and start an IVA – Will I be allowed to do this? Please let me know!

John · Posted: Fri Jun 29, 2007 9:48 am Post subject:

Leo,

If a Debt Management Plan "DMP" isn't working for you, you may wish to cancel it. But be sure you've given it time to work. Some banks and lenders will not accept offers from a DMP at first in the hope that you will begin paying the full amounts again. You may find they will accept your offers after a few more months. Speak to your DMP provider about this.

If an IVA is approved by creditors, they are not allowed to contact you in any way. They would have to deal with your Insolvency Practitioner i.e. ClearDebt. They would also have to freeze interest in accordance with IVA regulations. That is your creditor’s side of the bargain. In return, you must co-operate with your Supervisor. As such, you must remain up to date with contributions, and inform your Supervisor about any non-payment and the circumstances surrounding non-payment.

An IVA can only work if you are commited to finding a resolution to the problem. an IVA is a way of 'biting the bullett'. You should not consider an IVA if you feel you wanted to start and stop your contributions.