Spent the whole day crying!

[Mrs_Moody]

Spent the whole day crying! Northern Rock revised their vote but they needn't have bothered. It works out that apart from the savings we will make by moving to IO on the mortgage, we will be paying out almost the same as we were before on our debts, which is what put us in this position in the first place. Not only that, but they want to make the IVA 7 years! Payplan couldnt have been more useless, it took a half hour phone call just to work out what the uplifts actually were, she changed the figures 4 times.. I dont think she could work it out herself. Ive had the most soul destroying week, sat by the damn phone, waiting for information and now we end up back where we feared ending up, square one! I hate NR, I would never ever, ever, deal with them through choice again. Sorry for rant, but I just feel as though we have had bad advice from a company that dont know their ar*e from their elbow that have made this process far more painful than it needed to be! We feel really tied now because if we go DMP we need to do it quickly, creditors are getting impatient and default charges on some are rising, payplan already have all our details, Ooh, what to do

[Cath]

I feel for you Mrs M. What dividend will this proposal give you?

Maybe you could try again with a different IP firm.

We started out with one that gave us silly figures for expenditure and at the time (in a flurry of panic) I thought it was OK until I found this site and we started all over again with Melanie and her team.

All my post today was from creditors about default notices and such. I think you have 90 days from when you first didn't pay before they can take further action and then I'm sure your IP can go to the court for an extension if the paperwork and creditors meeting hasn't been set or done (I'm sure someone will be able to clarify but that's what I have gathered from what I have read).

I have a £5k National Savings Certificate which was left to me by my Grandma and that will be going into my IVA, I have no choice about it and even if it didn't it would only be used to shore up the debt problem for another couple of months, as did the other money she left me, it was a very substantial amount and all it did was put the debt problem on the back burner for another 12 months, I have nothing to show for it.

I wish you the very best with whatever you decide to do xxx

[Pennyless]

Mrs Moody it seems strange to hear that you will still be paying out the same as before you got the IVA.

Surely your IP must of made allowances (food/clothing/mortgage/petrol etc) on your I & E leaving you with sufficient money to live on in accordance with CCCS guidelines, otherwise the IVA would be doomed to failure from the start.

You certainly seem to be in a bit of a quandry at the moment and I hope you can get all this sorted.

Good luck to you and yours.

[Pennyless]

Cath we were the same as you....any money we got from anywhere just got used to avoid what i eventually established was the inevitable.....we couldn't dig ourselves out of the hole and needed professional help.

[Mrs_Moody]

Thanks for that guys, I'm not sure theres any point trying agin with another firm for an IVA because it was Northern Rock that insisted on the uplifts and changed our allowances. They added £347 to our payments and dropped other allowances, £47 off our food allowance, and various other things. Bit laughable really, they obviously just did not want us to go IVA and made it as difficult and un-appealing as they could. I think our clothing allowance was stripped down to about £9 a month each, well whoopie doo, My husband is a proffesional and I work in an office, we both have to wear 'business dress' but on £9 a month I think even in Asda we'd be hard pushed to look business like for long!

[Cath]

Maybe another IP would be able to help you out. I know that with the firm we were originally with, they were simply fudging the figures to what they thoughst the creditors would accept and the creditors, especially NR would have seen straight through this.

The firm we are now with are very thorough and need to know the ins and outs of our expenditure, for example I said that we could live without the hairdressing allowance (which the other firm never gave us) and I was asked how so as people obviously need haircuts.

Think about it Mrs M, it may take a bit more time to get it through but it could well be worth it in the long run.

On another note, I hope NR are not now looking at 7 years in the magority of cases as they are one of my main creditors also!

[martgoingmad]

Hi Mrs Moody,

1st thing Don't Panic.

NR rejected our 1st IVA proposal immediately and didn't negogiate with our IVA firm DFD. We immediately went into a DMP with Payplan for 1 year paying NR about £103 per month.

18 months later, using Melanie's firm as our IP NR have initially accepted our IVA proposal and tomorrow is our big test. The creditor's meeting.

I found Payplan excellent for the DMP and found most companies liked them and NR accepted the DMP offer initially for 12 months then accepted the slight increase 12 months later.

So don't despair there is hope, get Payplan to do the DMP to buy you some thinking time and consider your next option.

All the best to you and hope the light at the end of the tunnel becomes brighter.

Martyn

[Pennyless]

Wow Mrs Moody £347 differance......I can see why you think its a non-starter....surely your IP should of known there would be such a massive differance in the proposal to what would be accepted by an individual creditor....even if it is N Rock.

PS: Mrs Moody never say never......your current IP obviously has all your documents so if not happy why not consider changing, after all you have done all the hard work, maybe another IP would be more successful.

I must admit when I first approached an IVA Company (no names) I told them (truthfully) I spent around £600 on food...£200 pound on cigarettes and loads more than what a creditor would normally accept and they said no problem. Of course when I spoke to Melanies team and told them £600 on food they immediately cut it down to the guideline and as for the remainder of my so called expenditure (except utilities) well you can guess it was mightely reduced to a realistic level.

Ironic thing is that although Melanies team did offer me less than other IVA Companies on my I & E, I still chose her Company.....and with each day I thank my lucky stars (of which at the moment I dont have many) that I did.

[Pennyless]

martgoingmad that sounds like good advice. Good luck for tommorrow, will check in to see how you get on.

[Shining]

Mrs Moody sorry to hear things aren't working out for you at the minute but as others have suggested why not give someone else a ring and just get another view and hopefully something will be sorted but if not at least you'll know your options.

[Mrs_Moody]

Good luck for tomorrow martgoingmad, and thanks for your calm advice. Thanks all of you for your advice. Payplan are phoning us Tuesday to see what decision we have come to regarding these outrageous demands, but I will be ringing them first thing tomorrow to tell them that we are most definately, no matter what going into an IVA for 7 years nor are we having hub's pension stopped. He has a teachers pension and it would be madness to mess with that! We also worked out that paying £942pm (not even including his pension)over 84 months would be more than borrowed in the first place and thats without them nabbing any equity off us! Seriously, we would be completley mad to go with this.. wouldnt we? Next thing for us is DMP whilst we research the possibility of trying IVA again elsewhere. Mart, are you saying NR were included in the DMP? I assumed they would be excluded and we would have to pay them as normal?

[Cath]

The thing is though what you borrowed doesn't include the interest which is the crippling factor, well for us anyway.

Maybe you're just not ready to admit defeat yet.

[Mrs_Moody]

Yes, but wheres the point in paying all that money back in an IVA, we can do that in a DMP.. I just dont get it! An IVA is supposed to be an affordable solution to repaying a proportion of the debt back, by the time those payments increase over the 7yrs and especially if house prices rise, they will have had the lot back and more than enough to cover their damn interest!

[mikepapa]

Mrs M, i think you need to change your ip,get your paperwork back & try another ip. our iva was accepted ,nr were our main creditor our dividend is around 27p,(mainly because of the extra 6th year) our only other option was BR, where they would have got zilch,, zero pence, common sense prevailed in ou case, i am sure it can in your case to. good luck.

[Cath]

Well that's what you would have had to pay in terms of your agreements with your creditors before you were insolvent? 100% payback, surely that's a good thing?

Maybe you should try the DMP route and see what happens. I'm sure from reading your posts, you're not in the right place for an IVA right now.