my main creditor is NR

[BlueShoes]

Hi fudge34
We too have little equity in our house as bought only a year ago, and we have bankruptcy as a back up should our IVA proposal fail. We do not have NR as a creditor, although owe quite large sums to less than 10 creditors, so are in the position that 2 of them could block the IVA as they individually hold more than 25% of the debt. (If they vote that is!)
We have looked into bankruptcy, and although neither of us would have chosen to be in this position, we know that it is are only option if the IVA proposal does not succeed.
There are some really supportive people who regularly post on here, including some who have gone bankrupt, so it is a great source of support.
Good luck with your plans.
Have you got a good IP? And are you paying upfront?
Blue

[fudge34]

its so difficult isn't it - you think you will always be able to pay off debt and then you realise that life has changed and you cannot. I don't know why NR are so unreasonable to me going BR means less money for them in the long run. I am working with Accuma and I don't pay any fees up front if they don't win it I don't pay them they sort out another route for me which would be to look at BR and then a DMP which I don't think NR would allow me to do anyway - the IVA is going through and should be held on August 17th so not too long to wait to find out where we are how about you?

[BlueShoes]

Our meeting is in the next week or two, and we are with a reputable IP who has a good track record of success with IVA proposals.
We never thought we would have such huge debts, as we have reasonably good jobs/salaries. But sometimes things don't work out quite how you planned; so we find ourselves in the position we are in.
With young children, we obviously want the finances sorted out one way or another (IVA or BR) so that we can stop worrying about the debts and get on with life! (In fact our youngest is 5 tomorrow, so we are having a party at a playgym, which if the IVA goes through will probably be the last as they are pretty pricey!)
Good luck with everything, and keep asking questions. (I'm still asking and have been posting for a while!)
Blue

[Adam Davies]

Hi fudge
What percentage of your total unsecured debt is NR ?
As you have little or no equity in your house then you are in a strong position to be able to keep hold of it by getting a third party[family/friend]to buy your share fro the OR.
If you can live with the Bankruptcy notice in your local paper then this may be the solution that is best for you if your IVA is rejected.
To be honest the more people that go bankrupt once NR reject their IVA the sooner that NR will start looking at IVAs constructively and with an open mind.
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

[fudge34]

Hi
My main debt is with NR its just ahead of egg - I owe them 26.000 currently and the rest are almost managable just NR. I would probably now consider BR as a viable option depending on the outcome of my IVA. My main concerns obviously were my house and my professional reputation and the fact that I would like to get credit at somepoint (i.e moving house in the future) Could my husband buy out my share? I have a joint mortgage and I am not sure that we have any equity in our house to be honest we brought it last year an had a minimal deposit the IVA has stated my current equity once split in half is just under two grand - any help gratefully received!

[fudge34]

Which IP are you with just out of interest - I know that is the thing isn't it paying it all back over 5 years although being positive you look at how long it would take if you were paying it back over a DMP - how are you dealing with your house if you need to take BR? am crossing my fingers for you that you get the IVA sorted!

Our meeting is in the next week or two, and we are with a reputable IP who has a good track record of success with IVA proposals.
We never thought we would have such huge debts, as we have reasonably good jobs/salaries. But sometimes things don't work out quite how you planned; so we find ourselves in the position we are in.
With young children, we obviously want the finances sorted out one way or another (IVA or BR) so that we can stop worrying about the debts and get on with life! (In fact our youngest is 5 tomorrow, so we are having a party at a playgym, which if the IVA goes through will probably be the last as they are pretty pricey!)
Good luck with everything, and keep asking questions. (I'm still asking and have been posting for a while!)
Blue

[Adam Davies]

Hi
Yes your husband could offer to buy your share from the official receiver and once you are discharged from bankruptcy[normally a year]you could look at taking a mortgage.
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

[atom]

Hi, if you have a property and Northern Rock reject, they may end up putting a charge on your house for the outstanding debt. If so, there's nothing to stop the IVA being re-submitted without Northern rock and therefore have a better chance of success.

Part of the Rock's view is that if an IVA is rejected, the natural step is for the individual to go bankrupt. However their research has shown that most of those whose IVA is rejected don't go bankrupt which strengthens their view to reject.

[Adam Davies]

Hi
That certainly seems to be their view,looking in from the outside.
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

[catullus]

But what NR don't seem to understand is that many people who should go bankrupt refuse to do so for purely irrational reasons.

This leaves them muddling through a completely shambolic financial position leaping at the shouts of the creditors who shout loudest or, worse still, for people in this situation, living the life of the living dead in a DMP that is acheiving nothing.

And of course this suits NR because until someone enters bankruptcy or goes in to an IVA they don't have to write the loan off their books. Better still they blame IP's for overmarketing IVA's which casts a doubt over the legitimacy of the procedure thereby discouraging other people from looking at it as an option.

[Adam Davies]

Hi
Quote "However their research has shown that most of those whose IVA is rejected don't go bankrupt which strengthens their view to reject."
I think NR understand that most people will not go BR and instead stay on a neverending debt repayment plan.
As you say it makes their bottom line look better.
There is the otherside of the coin where they refuse a legitimate IVA that most of the other creditors have agreed to and the debtor does go bankrupt not only giving NR next to nothing but also for the other creditors.
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

[fudge34]

Hi I have my mortgage with NR will this make any difference to what NR may do or won't do do you think?

Hi, if you have a property and Northern Rock reject, they may end up putting a charge on your house for the outstanding debt. If so, there's nothing to stop the IVA being re-submitted without Northern rock and therefore have a better chance of success.

Part of the Rock's view is that if an IVA is rejected, the natural step is for the individual to go bankrupt. However their research has shown that most of those whose IVA is rejected don't go bankrupt which strengthens their view to reject.

[catullus]

Hello Fudge34,

Not really. Atom's post was suggesting that if you have equity in your property NR could get a charging order to secure some of the unsecured portion of their debt. This would leave a smaller unsecured debt to be dealt with in the IVA thus reducing their vote in a subsequent IVA.

Unfortunately I think that you mentioned in an earlier post that you don't have much equity so this is probably not going to work for you.

[zoe]

Hi Fudge34,
I can see you have had great advice so far - If you wish to have further information on Bankruptcys check out the blogs for myself, skippy13 and scaredkez for info.
There is also a debt evening tomorrow night which i will be attending.
Hope this helps
Z
x

Zoe
x
Keep your chin up - everything happens for a reason!
View my blog http://zoes.blogs.iva.co.uk/

[atom]

Hi Fudge 34, in my experience N Rock will many times still put a charge on your property even if you have £0 or little equity. I have clients with the N Rock 'Together' mortgage (up to 95% secured and the rest unsecured - up to maximum 125% loan to value)or with standard mortgages and personal loans where N Rock are putting the unsecured element as a charge against the property.

Their view is that the house value will rise anyway and if you are doing a 60 month VA, you probably won't be moving house. Also during the 5 years of the VA your house may have grown in value to cover the charge. If not they can just sit and wait until you sell.