I'd like to know if anyone has any info on co.

[kirsty1]

no he probably couldnt afford my half of the loan as he doesnt earn as much as me and ca just about manage his half of the mortgage and bills.

[kirsty1]

hi again - i've now been informed that norther rock are just rejecting IVAs outright. Do you know if this is true? If i had to include them in an iva, it'd fail because most of my debt would be with them (my half of the unsecured loan being approx. 15k

[MelanieGiles]

Well there must be something strange going on in my office then, as I have had every case put forward to Northern Rock accepted over the last three months!

It is rot to say that they are rejecting all IVAs outright, but they have strict recovery policies and view each case on its own merits. I would take advice from a couple of IPs as we don't all turn Northern Rock work away - obviously!

[Adam Davies]

Hi Kirsty
What are Payplan advising you about a possible IVA ?
Regards

[kirsty1]

Hi - I've not been advised by Pyplan but U have spoken to an IP (via Debtadvice). However, I did not include my NR debt. at the time I hadn't even thought about it as one of my unsecured debts- It was just my mortgage. I would like to be able to do an Iva but NR proably have around a 50% share of my debt. For this I pay around £100 a monthto them. Do you think ould i do an IVA, leaving out my partner who pays the rest of the NR unsecured loan?

[MelanieGiles]

Your partner will not form part of your IVA in any case, so that is not a problem, but he will get chased to pay the Northern Rock loan as he is jointly liable for that. An IVA including Northern Rock for you is not necessarily problematic but not all IPs will look at them.

[kirsty1]

ok, thanks. it all seems so complicated for me. a student loan, northern rock, my partner, my fixed rate mortgage ends in 2012, and i want to start a family soo. i feel like i'm at my wits end. i have no idea what to do for the best

[MelanieGiles]

That is why you need proper professional advice Kirsty. Can I suggest that you contact two or three IP firms, seek their advice and decide whether you want to try an IVA.

[Soulgrowth]

Kirsty ... don't give up ... there is a always a solution, just some days we can't quite see it ... and then it all becomes clear again.

Keep in touch

Debbie

[go_4_broke]

Hi Kirsty

Sorry it's a bit late in the day but reading the above, I can't help thinking Bankruptcy might not be the worst thing that could happen to you.

It depends on the exact legal status of the 'unsecured' part of the Together Loan - which seems to have the amazing ability to become 'secured' at the first sign of trouble - and the exact amount of equity (if any) you have in the house.

If ALL the Rock monies are legally secured (and it sounds like they are)if you went bankrupt all the loans would go except the NR stuff and the Student Loan and you would pay into the Bankruptcy an affordable amount from earnings for 3 years.

I'm not sure on the exact amounts but if you have the 'Together' (125%?) Loan you probably have no or very little equity in the house? Theoretically whatever there was could be bought out by the partner and you would continue to have joint liability for the NR loan/mortgage.

Subject to the usual caveats about professional advice you'll get an easier ride in bankruptcy and be paying for 3 years and not 5-6 in an IVA. Also if the IVA goes pear-shaped you could end up Bankrupt 3-4 years down the track and your house could by then be worth a lot more, in which case they will be after it. They will be after a good chunk of it anyway in an IVA. I also don't like the bit Melanie mentioned about he will get chased to pay the Northern Rock loan as he is jointly liable for that, I think you need to get that clarified!

If you can stomach it Bankruptcy might be worth looking into. Best of luck in whatever you decide.

[MelanieGiles]

What is it about my comment that you don't like, go for broke?

Surely you understand the definition of joint and several liability? And how have you determined that the Northern Rock loan is secured? The 125% together mortgage includes 30% of unsecured lending.

[kirsty1]

i work for a very well known company and i'd probably lose my job if i went bankrupt. and its not the sort of question i want to ask to find out. also, my family would be horrified. and i dont think my partner has enough disposable income to buy my equity (our house cost 92k. we borrowed £115k. our house is probably worth around £125 - 130k, but his wages just about cover the existing half of the mortgage & bills that he pays

[go_4_broke]

Hi Melanie

Unfortunately yes - I take it to mean that as soon as Kirsty is in an IVA then NR can and will pursue the boyfriend for any shortfall at least - and possibly aggressively as the loan will then be deemed to be in default. That seems to go rather against the original aim of keeping him out of it and restricting his liability to 50% of the regular payments - unless a condition can be put in the IVA enforcing this.

My understanding of the way the Together product works is that even the 'unsecured' part is secured on an 'all monies' guarantee, which makes it effectively secured in my book, at least in default (which it technically would be) and ought to be good enough grounds to exclude it from an IVA. I can't see why NR would object to this, after all it is giving them preferantial treatment as creditors! However I CAN see why other creditors would object to it NOT being included, because it looks like one (on the face of it unsecured) creditor is receiving preferantial treatment ! If this is correct I think NR have been very clever in designing this product, (which incidentally following the debacle at NR is no longer available), it just makes it a b*****s muddle for everyone else.

Kirsty - I think your best bet in the short term might be 'Plan A' - the original DMP with the private company. It looks like they have the more flexible approach, and thats what you are paying them for. The big public/charitable/free providers will be more inclined to do things 'by the book', but it sounds like the private co. have a better handle on what is going on with Northern Rock. You can use the DMP to tread water and should be able to bale out at any time (check this) once you have decided on a more permanent solution. An IVA is a big commitment so you need to be sure it is bang on for what you need.

Also I think you need to check that house value. It sounds as though it's gone up around 30-40% in six months which is some going in the current climate and it's important as it has a lot of bearing as to what your options are.

Best Regards

[kirsty1]

hi - Yes we spent a lot of the unsecured 30% on doing the house up (It was very cheap for a large 3 bed semi, gardens, etc - at £92k) but needed gutting and redoing, which is now almost complete. You do have me thinking about BR though now. If NR secure it all, then the equity is about 15k maximum in total. How can I find out if my partner would be able to purchase my half of the equity? If I do lose my job it wouln't be too bad seeing as how I could afford to get a lower paid one if I went bankrupt

[Adam Davies]

Hi
Could your partner afford to raise 7.5k ?
Have a look at the t&c of your employment to see if there is anything about insolvency,your company can't just sack you because you are bankrupt unless they have put this in your contract.
Your NR unsecured part of the laon is unsecured and your partner fully liable so please do take professional advice from a couple of insolvency practitioners
Regards