OR was very pleasant, again non judgemental

[pippa]

It would seem so soulgrowth, he has asked for a new valuation to be carried out, I need to do this asap, to be honest the valuation for my iva was based on certain work being carried out so I need one giving its market value as is.

Thanks for the kind words

Pippa

[Adam Davies]

Hi
Well done Pippa !!
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

[aguise]

Well done Pippa
you must feel a bit better now its over.

Ang

Please visit my blog at http://aguise.blogs.iva.co.uk/

[MelanieGiles]

I am sure that Pippa will not mind me pointing out that her IVA proposal, which was rejected by just one creditor, was offering 54p in the £ from a combination of monthly contributions, the sale of some shares and a final year equity release. To enable this to be affordable, Pippa was prepared to revert her mortgage to interest only for the duration of the IVA.

The reality now, and how this works to her advantage, is that assuming that she is able to find a family member to purchase the beneficial interest, she can use her £90 per month to be begin a repayment plan towards this person, and once discharged re-mortgage the property to pay off her funder.

Whilst in the meantime - her creditors get paid little or nothing! It's a strange world isn't it!!!

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

[thebear29uk]

Hi Mel/Pippa

Was the £90 the offer to creditors as monthly payment in the IVA proposal? If not how much would the payments have been?

As I understand it in 6-8 months time Pippa will be able to remortgage to repay the relative and that's the end of it. No 3 years of repayments, an almost certainly lower mortgage repayment as an equity release in year 4 would probably have been higher than buying the BI now. And she can keep her repayment mortgage and continue to reduce it rather than switch to interest only.

Mel do you forsee a time when all the other creditors take NR to task over their policy of rejecting IVAs? I know Andy touched on this a few weeks ago but those few weeks have seen more and more good proposals rejected simply because NR have more than 25%. I'm not sure what the others could do though. Maybe complain to the dti or the BBA that perfectly good legislation is seemingly being ignored by one creditor when all the others seem to embrace it. Who knows?

Regards

Dave

[Skippy]

I'm glad it went well Pippa - here's to your debt free future x

Yesterday is history, tomorrow is a mystery, today is the present - a gift to make the most of.

View my blog at http://skippy13.blogs.iva.co.uk/

[MelanieGiles]

No - the £90 is her disposable income as calulated this morning by the OR. Her IVA payments were going to be higher, as she was going to revert to an interest only mortgage.

I really do not see the other banks lobbying Northern Rock on this point - as they will be reluctant to dabble in another organisations policy - and the loss is relatively small fry compared to their overall lending.

Whatever we feel about this creditor, we have to respect that they have their own policy and are sticking to it. In my experience banks rarely take much regard for other lenders in an insolvency scenario, and more and more I am seeing individual lenders charging (!!) ahead with charging orders when they become aware of a looming insolvency - thus seeking to gain advantage. Again, they cannot be blamed for having a good collection policy - banking is a commercial industry at the end of the day.

Our regulators are in the process of discussing various policies with a number of major stakeholders in an attempt to understand why they have their current policies and why they do not feel that an IVA offers a sensible method of repayment for them. In Northern Rock's defence, a lot of their lending is linked to a customer's mortgage term - often over a lengthy period with a very favourable interest rate. They are refusing to accept IVA proposals which seek to write off a substantial amount of that debt after five years, and you have to see matters from their point of view to a certain degree.

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

[pippa]

Melanie

It certainly is a strange world, 3 months ago I was drowning in debt, had been worried for so long I didnt know what it felt like to be normal anymore. I am now looking to a debt free world in 12 months maybe less. I think I was expecting some form of 'punishment' but it has been nothing but so far.

I think Melanie worked out that at most my creditors will get approx 5p in the pound in BR, but can i add i would still have preferred the IVA route, I felt I would have done the right thing, I have to admit BR does appear to be the easy option even easier if you have no equity.

And I dont know about stigma in BR i certainly havent had any at all, well not yet anyway.

As melanie says, my surplus will be put away to start a 'buy back' fund. And if by chance, as the OR mentioned, I get an early discharge after 6 months I can start looking at remortgage options even earlier. Strange world indeed [;)]

Pippa

[MelanieGiles]

Pippa

Do keep posting about your experinces. I, for one, and fascinated by your case and what has actually happened, and it is so good to see you back on form again.

The key thing about your case is that you actually wanted to repay your creditors as much as you could possibly afford, and were prepared to make sacrifices to do so. The feelings of despair and failure that you felt, have now been met by a renewed and positive outlook for the future, and debt freedom is in your sights.



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

[thebear29uk]

Hi Melanie

I think therein lies the problem. NR tend to lend much higher amounts over longer periods linked in to the mortgage therefore they have a higher percentage of peoples debts.

Regards

Dave

[fudge34]

Hurrah Pippa! you did it way to go girl! I have been thinking of you today and sending you lots of positive thoughts well done and thanks for clarifying your position with the OR so well - it helps to understand the process and for others like me, who are still to go through it. Interesting about the child tax credit and child benefit as my IVA advisor did count these as extra 'income' on my IVA and even went as far to say that my child tax credits would surely go up in teh future allowing me to pay more towards my IVA -- relief to see that the OR doesn't count these as I won't have to worry about the annual review next year and the liklihood of my child tax credits going down ... well done again now HAVE A LARGE GLASS OF WINE!

[Skippy]

And a big bar of fruit and nut!

Yesterday is history, tomorrow is a mystery, today is the present - a gift to make the most of.

View my blog at http://skippy13.blogs.iva.co.uk/

[pippa]

Cheers Fudge

You have a glass for me, I dont really drink, as you are probably aware my vice is chocolate[:D]. And thats going too I have put on a stone in the last 3 months [:0], always pick up a bar of my best friend when stressed.....anyway no more, besides OR knocked my chocolate budget request right out the door lol!

Managed to decipher my nervous scribbles from the meeting earlier and here is what was allowed.

Mortgage 760
House keeping 300
Gas/elec 67
Water 32
Telephone 52
Travel to work 40 (he up'd it by 10)
Clothing 60
Council tax 62
Car tax 11
tv licence 11
dentist 5 (down from 15)
Home insurance 30
Car Insurance 30
Holidays 50
Hairdressers 20
Pet care 20

He disallowed

Pocket money 20
Pet vacinations13
Pet insurance 14
extra pet food 20
Car maintenance 20
Life ins 13

I have 2 dogs and 2 cats so put dowm full costs, but he would only allow 20, he said my house keeping while a little high for 2 people he would allow.

Pippa

[catullus]

Most people in an IVA would give their eye teeth for this I & E, ah say most people would give their eye teeth (apologies to Fred Elliot!!)

Are you reading this Northern Rock?

[BrassicLintus]

Congrats Pippa! I'm filing for bankruptcy and my meeting is at 9.00am today!!! But reading your post has made me feel a bit better! Had zero sleep last night and have been up since 3am going over my papers to make sure everythings correct! But you must feel so relieved. Very happy for you.