Oliversbar - what are your current personal details - how much do you owe? Do you have any assets and what is your DI? There maybe another solution possible.
Regards, David Mond, Insolvency Practitioner for over 46 years. Personal Insolvency Practitioner of the year 2012, Personal Insolvency Practitioner of the year finalist 2013 & 2014 awarded by Insolvency & Rescue Magazine and 2015 finalist for Personal Insolvency Firm of the Year.
I posted my further details in regards to all this on the thread under Asset Financial. We owe around 70k, 30k odd of that is to NR i one of the infamous Together mortgage products. We were going to do an IVA with Melanie earlier this year but due to the length of time we had had the NR loan(jul 07) and their stance (I pleaded for them to secure the 30k as our house is all we want to keep) we went onto a DMP. The amount owed seems to be increasing not decreasing,so Ithink we'll go for the IVA to avoid BR if we can.I was worried about my job, due to the strcict security of the MoD, but I think I'll risk that now. I think it may be ok as long as I declare it.
Northern Rock will definately reject an IVA if the borrowing has been taken out within 12 months of your application, but as you have now passed that stage, it might be worth revisiting the IVA especially if the DMP is not working out for you.
Have the accepted the DMP payment? I will read throught the other thread, as there is probably more information there!
It should be separated. By continuing to service the Together loan, you could be unfairly prejudicing the other creditors - but if my memory serves me rightly - aren't your contractual payments lower than NR would be entitled to receive from the pro-rata portion of your disposable income?
This is one of the criteria that they do operate when reviewing cases, and if this is the case then an IVA may still not be an option for you unfortunately.
I am sure that I can remember the facts of your case - and that with a total disposable income of £500 - and Northern Rock at 42% of your aggregate debt, they would be entitled to receive £210 - but the contractual payments to them under the Together loan are only £185 - so you are not actually prejudicing the other creditors, indeed they are getting paid slightly more as a result - and NR will never accept an IVA where it can be demonstrated that you can afford to continue the contractual payments to them.
One of the dangers of taking out the now extinct Together product, was that you were borrowing a large sum of money but paying the payments over a much longer time period than normal. This gave the lender the opportunity to maximise the interest gain from the debt, but they do get pretty upset when people try to declare themselves insolvent just to avoid it.
MelanieGiles wrote:
I am sure that I can remember the facts of your case - and that with a total disposable income of £500 - and Northern Rock at 42% of your aggregate debt, they would be entitled to receive £210 - but the contractual payments to them under the Together loan are only £185 - so you are not actually prejudicing the other creditors, indeed they are getting paid slightly more as a result - and NR will never accept an IVA where it can be demonstrated that you can afford to continue the contractual payments to them.
One of the dangers of taking out the now extinct Together product, was that you were borrowing a large sum of money but paying the payments over a much longer time period than normal. This gave the lender the opportunity to maximise the interest gain from the debt, but they do get pretty upset when people try to declare themselves insolvent just to avoid it.
