IVA Vs. DMP - Which can be the better choice?

To get rid of your debt, there are two important measures that one can think of - one of them is the Debt Management Program (DMP) and another one is an Individual Voluntary Arrangement (IVA).

In DMP, a person meets with all the creditors and tries explaining them his or her financial emergency and why he or she is not able to make payments.
You need to mention to your creditor the time period by which you will pay off all your debts and request for a revision of the payment plan.
One benefit of it is that you don’t have to pay any fee while the process could be a bit stressful.

Another type of DMP is Commercial Debt Management Program. In this program, you hire a Debt Management Company and they take care of your case, providing you proper guidance.
In this case you need to pay some fee for taking services of a Debt Management Company.

On the other hand, an IVA is a formal process and a legally binding agreement between you and the creditors. It saves you from bankruptcy and set up an repayment scheme for you.
IVA helps you to calculate your income and expenses and help you fix an amount that you can pay to your creditors comfortably. While protecting you from legal actions it is an advantageous alternative for debtors providing them a legal cover.

IVA could be a better option in comparison to the informal arrangements of a DMP. IVA protects you from going bankrupt and saves your assets legally from being acquired by your creditors.


If you are in serious debt we advice you to talk with a debt expert to evaluate your personal circumstances. A debt solution could have some costs, keep in mind before applying.

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