I am currently in a DMP but struggling to keep up with my payments, what happens if I change to an IVA but one of my creditors objects? Or would a DRO be better for me? For an IVA, I understand you need a certain percentage (by value owed) of your creditors to agree. If your largest creditor objects, it's unlikely your application will succeed. This happened to me before and I was left owing EVEN MORE than I owed when I first applied for the IVA. What else can be advised in such a situation? I have since entered into private separate arrangements with all creditors, but the logistics of fulfilling these payments on different due dates is a nightmare!

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A DRO (Debt relief order) will only help if you fulfill certain, very specific conditions (You need to owe no more than £15,000 in unsecured debts, you can't be a homeowner, nor own a car worth more than a grand). The IVA requires approval by creditors to whom you owe 75%, by value, of your total unsecured debt. This means that, if 25% by value vote against, your IVA is scuppered.

However, this also means that it is rare that a single creditor can determine whether an IVA is accepted or rejected. And, it is rare for IVAs to be rejected in any case, more than 9 out of ten go through.

You have chosen to do a DIY debt management plan. This is a brave choice and can work well. It is complicated and difficult to administer - which is what you have experienced. It can also be true that creditors who have rejected an IVA will then demand more from a debtor who enters a debt management plan (DMP). We think this is unfair and are beginning to campaign on this issue. 

Fee charging DMPs (like our sister company Abacus) earn their money by handling the admin (something many people who have had difficulty managing their money really welcome), minimising the hassle and (whenever possible - it isn't always possible) getting interest freezes agreed with the creditors.

Hope this helps.