Northern Rock

[debandbatch]

Having had an IVA rejected solely because of Northern Rock could we try again for another IVA with someone else or would it be a waste of time. Failing this can anybody recommend a reputable DMP company. We have looked into Payplan but not sure whether to trust. We need to act either way very quickly. Any help at all would be appreciated
Thanks
Debbie

[dcl]

Hi Debbie
A couple of people I know are with Payplan on a DMP and are happy, they don't charge a monthly fee and deal with your creditors quite promptly. The other one I've heard of who also don't charge a fee are CCCS.

[Skippy]

I think Myvesta also have a free DMP.

Onwards and upwards!!!

[MelanieGiles]

debandbatch

First of all you need to find out the exact reasons that Northern Rock rejected your proposals on. If those issues can be addressed, then maybe an IVA could be reproposed, although creditors do not like to see this happening as a general rule.

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

[debandbatch]

Hi Melanie,

As far as we can ascertain Northern Rock rejected because of it being a new loan and the way it had been managed whatever they mean. I originally took out a loan for £20,000.00 but then I think it was a year later I had to refinance the loan. I took out a £25,000.00 loan with them but the original loan was paid off and I only got the few thousand difference. If I were to sell my vehicle or try and get a lump sum together to offer them would this help although it would only be somewhere between £6,000.00 and £9,000.00 if I was lucky.

Thanks
Debbie

[MelanieGiles]

Hi again Debbie

This can often be a problem as creditors see a new loan as brand new borrowings rather than the repayment of an earlier loan. You have to ask yourself the question - would the finding of a lump sum cause you even more ongoing financial difficulty? How would you manage without the car? What is the cost of alternative public transport? If you borrowed from friends or family, how would that debt be repaid?

My gut feeling is that there is no point in proposing another IVA just now. If bankruptcy proceedings are not an option for you, try a DMP for a few months to see if your creditors are generally agreeable to accepting reduced payments.

And you must not thing of preferring Northern Rock over the other creditors, by paying any monies directly to them, unless all of your creditors receive a fair share.

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