MELANIE - I AM SO CONFUSED!!!

[onlypassion]

Hi Melanie,

I am wondering if you can clear something up for me as I am so confused!!!! I have just spoke to a lady from Thomas Charles about our IVA. Now when we originally applied to Thomas Charles we though we had around £103k debt(ouch). We then got our paperwork which suddenly said that we had £155k debt. When we questioned this with our advisor (Ann Marie) she said it was due to the interest creditors will charge i.e our northern rock loan which is actually £24k turned into £45k as we took it over 25 years so they would total the return they would have had if we had taken this long to repay it - in other words they take what we owe them now and add the total amount of interest they would have received.

We have now just spoke to someone else from TC and she is saying we actually only owe the £103k we originally thought!

Which of the 2 is correct, I am confused!! We have an amount of £1120 a month for the IVA with an additional £250 for the last 16 months so with the £103k I am pretty confident for now at least. If it is the higher figure, then I am panicking.

can you please give me your expert opinion on what is likely to be right!!

many thanks (again!!)
Andrea

[MelanieGiles]

Hi Andrea

I believe that Northern Rock will discount the future interest, and therefore the lower figure will be the correct one to be used. This will, however, need to be checked out with Northern Rock directly to be sure.

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