IVA possible if i have debt with northern rock

[Richb]

Just wandering people, is it even worth applying for an iva if im have a large proportion of my debt over 50% with northern rock?

Cheers

Rich

[catullus]

Statistically you stand a 10% chance of them approving it but your specific circumstances may increase or decrease your chances.

[Richb]

great!:-(... sounds like my only option will be bankruptcy then?

[catullus]

It depends upon your specific circumstances. Have you tried talking directly to NR about your problems. Difficult to do, I know, but what have you got to lose?

[Richb]

no i havent, erm... might try this though.

[Oliver]

This will not automatically rule you out from being able to propose a succesful IVA. I would reccomend that you discuss the individual circumstances of your case with 2-3 IVA companies to guage their feelings on your chances of success.

Best Regards
Oliver

Thomas Charles and Co Ltd.
Experts in personal debt solutions.
Read customer feedback at: www.thomascharles.com/about_us.asp

[catullus]

I think that it would be better for you to try to speak to NR directly before you speak to some IP's. That way you'll know how big a problem you've got and will be able to explain NR's reaction to any IP you speak to.

You never know, they might be sympathetic, but if you are in financial difficulties now don't fall for borrowing more money from them especially if they want to secure all/more of their debt on a property.

What you should be looking for is an agreement to suspend interest with some sort of repayment plan but be prepared for them to put you through the ringer.

If you get a hostile reaction that's the time to take some advice from an IP.

[Sadsack]

I agree with ThomasCharles. There are quite a few IP's who post on here who have had considerable dealings with NR and have been successful. My concern is that by approaching NR in the first instance could possibly jeopordise a positive outcome in an IVA.

Sue

Ho Hum! Think I'll bang my drum!

Read My Blog
http://sadsack.blogs.iva.co.uk/

[Oliver]

As this is only the initial stages of a "potential" IVA there would be no problem gauging some companies’ opinions whilst starting a dialogue with Northern Rock.

I take Cattalus point on board as one of the biggest complaints from Northern Rock is that the first they hear about a client of theirs being in financial difficulty is when the IVA documents arrive.

Talk to NR and see if you can come to a satisfactory agreement but also feel free to discuss your case with some debt experts also.


Best Regards
Oliver

Thomas Charles and Co Ltd.
Experts in personal debt solutions.
Read customer feedback at: www.thomascharles.com/about_us.asp

[catullus]

Why would speaking to them first jeopordise a subsequent IVA?

[Sadsack]

As I said - could possibly - not - it will. As IP's are professionals in all aspects of debt and various possible solutions to them, their expertise in dealing with creditors and advising debtors is second to none. By approaching an IP (or 3) explaining their predicament, the debtor in my opinion will get fair and practical advice as how to deal with a creditor. I would far rather consult with a professional before approaching the creditor, particularly this creditor, after reading the many threads on this forum. I feel that Richb is being responsible by researching his options by posting on this forum.

I am certainly not advising as I am in no position to do so, however, this is my opinion as a debtor who has NR as a creditor.

Sue

Ho Hum! Think I'll bang my drum!

Read My Blog
http://sadsack.blogs.iva.co.uk/

[catullus]

As Thomas Charles have said above, one of NR's criticisms is being hit out of the blue with an IVA proposal without ever being aware that there was a problem.

NR is a difficult creditor but they do occasionally vote in favour and I think that playing by their rules is likely to give you the best possible chance of getting an IVA through, particularly where they control 50%+ of the vote.

I really cannot think how talking to them in advance could prejudice a subsequent IVA.In addition, talking to NR gives the debtor a really good feel as to how bad the problem might be (as opposed to hearing it third hand from an IP) helping them to formulate their own views as to the liklihood of an IVA getting though.

Armed with that knowledge and information an IP can do a much better job in helping the client to make the right decision,and, as I've said before. you never know, NR might be helpful.

[sonyse2t5]

Some Banks have an unwritten 'policy' that if you have fanancial problems they don't want to hear an IVA proposal at their door step as the next thing.
EGG PLC been one of these Banks.Protocol matters.

I held back on my IVA till I told them, and then chatted to their Specialist lending dept and made DMP payments as they represented 22% of the debt and could make the difference in an iva vote.

It could be conicidental but they voted for the IVA.

[s.b.w]

Got to admit, I've been in a DMP with my creditors prior to my IVA being set up and they do tend to act in a much more cooperaive way than if they just suddenly get hit with "talk to my IP".

I'm in the last 8 months now and it's been a hard slog, but better this than sticing my head in the ground and not trying to deal with it.

Good luck in whatever you decide to do.



Arghhhhh!!!!!!!!!
If only I'd said NO!

[Adam Davies]

Hi
Any danger of NR looking for a charging order[if the person is a homeowner] if told that someone is in difficulty ?
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