Help should I go for an IVA

[lpoyner]

Im in the process of trying to set up an IVA and after reading all the horror stories with Northern Rock am getting quite concerned that Im going to fall at the first hurdle here as I have a debt with Northern Rock and from what I can see they seem to put a stop on most IVA's has anyone in this forum had a situation where they have got an IVA agreed who also had Northern rock as one of their creditors?

[MelanieGiles]

How much do you owe Northern Rock in comparison to the remaining creditors - and is the debt linked to a mortgage with Northern Rock or just another unsecured loan?

I have got lots of IVA proposals which have been accepted by Northern Rock, but their policy towards IVAs has certainly got tougher over the last 12 months.

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

[lpoyner]

Hi Melanie
Your company have been sent all the details Tina is dealing with (very early stages) the total debt is around 35k Northern Rock debt £13k, all of the remaining debt is just in my name, the northern rock debt is in Joint name (with Husband) it is linked to our Mortgage (a together mortgage) seems a standard way Northern Rock did mortgages in the past?? As the loan is linked to our mortgage we just have 1 payment to them.

[MelanieGiles]

I will look at your papers when they arrive, but assuming that your husband is jointly liable for the debt, could he continue to make the payments from his disposable income leaving you with an IVA for the remaining creditors? This plan would need to be fully dislosed to the other creditors, but is definately possible if the numbers stack up.

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

[lpoyner]

Hi Melanie

Yes he could as it is part of our mortgage payment (we only have 1 account number for both the secured element and the unsecured element), it is certainly something he could continue paying. I just didnt know whether the other creditors would see that as favouritsm towards northern rock? I Just feel extremely worried that as Northern Rock make up such a big % of my debt, that they could put a stop to it before we get any further. Im sure everyone you deal with probably say this but I feel extremely stupid for getting myself in this situation and really want to work hard in putting this right and by paying a fair amount to my creditors hopefully I can do this and im 100% committed to any agreement I can reach with them.

[MelanieGiles]

It can't be favouritism to Northern Rock as he is jointly responsible for paying the debt! Don't worry we will sort this out in some shape or format.

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

[MelanieGiles]

Unlikely - the same management will be managing the bank, presumably under a similar corporate policy as there is in place now.

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

[lpoyner]

Thanks Melanie

I will wait to hear from you when you have had chance to look at the papers.

With regards the Northern Rock dilema, its just been announced on News at Ten that it looks like Northern Rock will now definitly be Nationalised, I wonder how a company that will be publicly(government)run will handle IVA agreements. do you think this will have any effect on the way they are currently quite difficult to make an IVA agreement with?

[MelanieGiles]

It is hard to say at this point in time to be frank - we will just have to wait and see.

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

[Beechy]

There must be significant issues with NR or the people looking to buy the business would not be looking for the long the guarantees from the Government .
I agree that some on the proposed bidders may be looking for a quick profit.
If the business had a decent debt book some other financial institution or investment company’s would have surely taken up the opportunity to see the value.
There has been much chastising of fund managers buying businesses, splitting them up and make profit. To the extent that the Government is reviewing the tax breaks to these companies..
Generally when you look at a business you look at the assts and liabilities if the assets are greater than the liabilities you have room for progression.
Add to this some positive cash flow ( which, at the time of review may not be there but with reasoned thinking can be attain) there could be a chance of saving the business.
As to the view NR take to IVA’s in the future, who knows but at some stage some one will challenge the Bank (Government) if they continue to adopt a none compliance with the banking code.
I think that the Government will try to work to clean the debt book up, take the losses and release the bad debt figure on a busy news day
In the short term the NR will have management change as indicated in the press recently with the likely appointment of a new Chairman, who is already reported to have found a new Financial Director.
The likelihood is that the business will be nationalised, will cost the tax payer money and those who have benefited from the rapid growth, good salaries and bonuses will move on to their net job.
Some may call me cynical, my self I think a realist

Who knows no could be a good time for all the people who have had IVA's rejected by NR to seek advice


Dave Beech