I am considering an iva

[kathryn.n]

I have a debt management plan with the cccs and have had some trouble with persuading northern rock to agree to reduced payments. I also have about £170,000 equity in my house, which has been on the market for about 2 years, but properties in my price bracket are slow to sell in liverpool. I am considering an iva-would these issues affect my chances of creditors agreeing?

[MelanieGiles]

Hi kathryn

One of our other forum posters "Scaredkez" has also had the same problems as you. Hopefully she will be on line at some time to tell you what is happening to her.

How much are your debts in total, and do be careful of charging orders as these are becoming more and more popular by certain creditors. If you wish to proceed with an IVA, then your existing debt management plan is likely to have little effect on your chances of success at a creditors meeting. How much are you currently paying into your DMP?

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

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[scaredkez]

hi kathryn i have had a no go from northern rock as melanie has said unfortunately i am going br very soon the sooner the better, they were not interested in helping at all. the house prices across the water from you are still booming and that is why i am going to lose mine, ironically today my boss called me in the office to tell me he is giving me a substantial raise which i refused can you believe that , he has felt so sorry for me having to go BR he thought he was doing me a favour
but the OR will take it so have said to him review after the OR meeting if i can help in any way please ask
good luck kerri

Please view my blog at: http://scaredkez.blogs.iva.co.uk/

[kathryn.n]

Hi melanie
my total debts on my dmp are about 60,000. I pay in 499 a month. northern rock are my biggest worry, i've heard that they are unhelpful from many people amd they have harrassed me mercilessly, even ringing repeatedly when i am teaching lessons. My whole financial situation is v complicated, involving the death of my ex partner and him leaving his half of the house to our children.
regards kath

[MelanieGiles]

Kathryn

I think that the best option for you is to call Northern Rock and see what they can suggest that you do. You are not "asset" insolvent, given the equity in your property, but are "cash" insolvent as you have insufficient money to pay your debts as they fall due.

If you are intending on selling the property at some stage, presumably then you will want to clear your debts from the sale proceeds, so why not invite Northern Rock to take some security against your property in return for lower repayments? You really have nothing to lose. Why not remortgage the property, as you have sufficient disposable income to cover the repayments (which would be lower than your are currently paying your creditors) and this would not affect your children's share.

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

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk