boohoo or yipeee?

[argento]

I've been away for a while and I just thought I'd update you all.
Be as breif as I can.
Creditors meeting back in september.
Voting was as follows.
Yes to IVA
MBNA £5000
Capitol One &8000
Lloyds &5000
Capital Bank £6000
Egg £5000
No to IVA
Northern Rock £16000 (surprise surprise!)
Didn't vote
Next £200
Argos £300
Lloyds &900
HFC £250
IVA rejected because of Northern Rock majority (boohoo!), referred by IVA company to Payplan for DMP.
Now for my questions.
My first payment via payplan is due to reach my creditors sometime this week but I've had a few phonecalls (mainy from MBNA) and so I explained my situation and told them the payment they could expect. They are not happy and want more. I said when they see my income and expenditure list they will understand that every creditor is being payed on a pro rata babsis and so I can't afford more. Still, they are not happy. (Boo hoo!)
In the meantime I contacted NR who haven't called me since the rejection and I found out they are in the process of securing my loan to my property - no phonecalls, no letters of warning, they are just doing it. Then I thought - maybe that isn't a bad thing. Let me explain and hopefully someone out there can tell me if I'm right.
I was worried that if my creditors don't accept what I'm offering through the DMP then they could make me bankrupt. I jointly own a house with my wife and have between ten and twenty thousand of equity in it. The debt is all in my name and therefore only half the equity could be touched but we would still probably need to sell our home as my wife could not afford to buy me out. If NR secure their £16000 to my house, therefore leaving me with negative equity, would my wife be able to buy my half for a small sum if my creidtors forced bankruptcy on me or I if get so fed up I clam it myself. This would then leave NR and my mortgage to pay. If that is right then Yipeee, there is light at the end of the tunnel. If this isn't right then can any one tell my what would happen? Also, if my creditors find out that I have no equity in my property would they be more willing to accept what I'm offering through the DMP and be more likely to freeze interest and stop charges becasue they know I will be better off and they would loose out through BR?
Cheers!
Thanks.

[Adam Davies]

Hi
Yes NR may have done you a favour in that if you bankrupt yourself,after they have secured your unsecured debt,leaving you with no equity,then you will be able to get your wife to buy the interest back from the OR for a £1 plus costs.
So as long as you can afford your mortgage payments and NR payments then you will be able to keep your house.
NR are sure going to be popular with other creditors[not]but seem to have a policy of looking after themselves above anyone else.
Regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[argento]

cheers Andy.
It's not the ideal way out of my situation but having tried my best to do what was right and give my creditors a decent return, if they aren't willing to accept then it's good to know I have options. Just a quick mention about NR, two days after my creditors meeting when they rejected and ultimately put the block on my IVA, the news broke about them having to borrow all that money from the bank of Engalnd to help them out. Pity they aren't willing to help out their own customers!

[Adam Davies]

Hi
Yes,you have done all that you can.
NR are very anti IVAs and seem to prefer to go straight for charging orders.
Let's hope other creditors don't follow that lead
Regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[MelanieGiles]

Why don't you try and represent the IVA with Northern Rock detailed as an unsecured creditor. So long as your other creditors receive a similar dividend to that originally pledged, and of course you will have to pay Northern Rock ongoing contributions in order to protect your property, this could actually work.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[Cybus]

Why don't you try and represent the IVA with Northern Rock detailed as an unsecured creditor. So long as your other creditors receive a similar dividend to that originally pledged, and of course you will have to pay Northern Rock ongoing contributions in order to protect your property, this could actually work.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

I wonder if that should read as secured as opposed to unsecured?
Assuming Northern Rock have the ability to do what they say then their whole liability becomes secured.

So the amount you pay to your secured creditors will go up, but equally the level of unsecured debt will go down.

Northern Rock effectively take themselves outside of the IVA by doing what they are doing. They will rely upon their security and as long as you make payments to them, they'll be happy (Well as happy as Northern Rock can be [:)])

Tell it like it is.

[MelanieGiles]

Thanks Cybus - I was obviously having a blonde moment. Yes I do mean treat them as a secured creditors, which they will be if the charging order is granted.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp