The Man from NR he say............................

[pippa]

A big fat NO!

Ok, I prepared myself for this, I was well aware of their stance on IVA's at the moment and as my main creditor the ball was always very much in their court.
Dont get me wrong I am hugely disappointed, as are the other 9 creditors I am sure. I have a meeting with my IP tomorrow to discuss whats next.

So, I want you lovely people to give your honest (as always) views of what people think they would do in my situation.

i have 61k of debt to 10 creditors and was offering 55p in £.
Due to a big drop in income to do this I would have to convert to an interest only mortgage ( not yet done as was awaiting outcome of creditors meeting) for the duration of the IVA with the usual equity release in year 4/5 etc.
I have approximately 30k equity (minus selling costs).

As my mortgage is still on repayment, I have very little left each month to offer a DMP ( by my calculations it would take about 34years if all interest etc was frozen)

So I have been looking at BR, I know I would lose the house, but it the initial cause of me getting on the road to debt, and it still needs work. The place is really getting me down.

Anyway I feel BR is the only fair way to distribute what I have to my creditors. Besides I can not cope with all this much longer and can not continue consuming the vast volumes of chocolate, I look like a bar of fruit and nut!

Regards

Pippa

[fudge34]

OH NO
Poor you, you must feel very upset and angry at NR. As you pointed out so must all the other creditors. I have a mortgage with NR and as soon as I am able I am going to find another lender. I am telling all my friends / workmates to do the same - I work in PR and I figure that if I tell at least 20 people then another 20 people will tell their friends and family and I have at least a small moment of triumph over them. I wish I could send you some chocolate as you sound as if you need it so will have to be a virtual bar of chocolate. I would recommend that you speak to the IP about getting someone to buy out your share of the house if appropriate. I was due to go down the IVA route today with NR but pulled out when I learnt that they would say no. I am now looking into BR as a viable option and there is some great advice on this and the sister site to help you along.

[aguise]

OH Pippa[:(]
I dont see what northern rock gain from this stance but if bankrupcy is not too painful for you then give them back less, its not fair to the other creditors at all and hopefully they will start complaining to Nr about it. I think they should be discounted from bankrupcy payments as they didnt want anything from an iva. Chin up we are all here for you.

Ang x

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

[tracy.h]

Hi Pippa
Really sorry that NR have yet again turned down another iva and 55p in the £ does seem like a reasonable offer.It just seems like game set and match with NR at the moment.
It doesnt seem very encouraging to others that are submitting iv's at the moment and i just wonder how long it will be before other creditors will get fed up with looseing out because of there stance on iva's.
I admit yes we borrowed the money but like most our circumstances change and payments become unaffordable so we go down the iva route to try and do the right thing and meet a brick wall.Its very harsh but with BR they get nothing,just seems very unfair when you have the painfull wait of setting up the iva you feel totaly let down.
I really do hope that you can find a solution and can find a way to move on.
Goodluck

Tracy

[catullus]

Pippa,

I'm really sorry to hear that but from my post about Northern Rock yesterday, you'll understand that I'm not surprised.

I think that, in your situation, it's important to understand that there is no right answer, it's actually what feels right for you and somebody in the identical situation might do the exact opposite and feel that they have done the right thing.

I do thing that is correct, however, not to get too emotional about your house. Selling/losing it is not the end of the world and I posted a while back that I see too many people box themselves in because they are desperate to keep their house and eventually it causes yet more problems.

This is all about giving you options and one strategy that you might consider is selling the house and distributing the money to your creditors in proportion to their debts. At the same time you could do a DMP, eventually on the lower debt, after the house has been sold, and hope that SIVA's are introduced next year.

Currently it looks as though they will be passed on a 50% vote of creditors so you might get one through then and NR should not be able to block it.

This is a good use of a DMP because it buys you time whilst you're waiting for developents but I would not recommend anyone to stay in DMP for years.

On the other hand you might be so sick of the whole situation that the certainty of BKR appeals more and you can see it as a new beginning.

Please don't think that this is a recommendation. It might be right for you but it's important for you to have options, consider them carefully and opt for the best one for you, That way you'll feel more in control of your destiny and that's the most important thing.

[pippa]

Thanks all for your words of support.

Catullus, I have had a lot of time to think and have looked at every possible option, and yes I am exhausted by it all and the 'fresh start' that BR would give is very tempting.
I think I know what I am going to do, and just wanted others opinions, of course I know the decision is mine and has to be what I think is best for me and my daughter and would never take anyones opinion as a recommendation, but thanks for your response it is much appreciated as are all the others.

Pippa

[Skippy]

I'm so sorry Pippa. If I were you I would say 'up yours' to Northern Rock and go bankrupt. I know it's easy for me to say as I have already done it, but for me it was a fresh start.

Good luck, whatever you decide to do 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/

[pippa]

Thanks Skippy

Yours is just one of the blogs I have read with interest, I am so glad you and the others post your experiences of BR. It was totally a no go for me but then I never really understood the implications fully. NR really need to wake up and smell the coffee, short of me getting run over by a bus tomorrow and my life insurance paying out, an IVA was my only alternative to BR

Pippa

[Skippy]

I was dead against BR at the beginning, but I didn't know enough about it to make an informed decision. To be honest I wish I'd gone straight into BR as I had no assets to protect, but hindsight is a wonderful thing!

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/

[fudge34]

Hi Skippy
I too have been reading your blog! you are gaining a famous status. I do really feel for Pippa NR are my main creditor too and as you probably no I am now not able to go through with the IVA as they will reject it. I am now looking at BR as a option - things that have stopped me losing my house for example are going to be worked through with my husband who is going to buy my share in a years time. I have gotten through the name appearing in the paper thing and I have no real assets we have a car which is in my husband's name it cost us a grand a few years ago so probably worth about 500 now and hte usual TV, Computer that type of thing but honestly I cannot say I have any real assets. I got into debt studying and then taking a year out to look after my little girl when I went to return to work I was told they couldn't facilitate me coming in later due to nursery hours etc so I had to leave and start again in a new area. I think that NR who have just announced record profits should be ashamed of themselves for allowing customers who have always paid on time and are facing difficulties a bit more slack aren't we all after all .. human?

[BlueShoes]

Hi Pippa
So sorry to hear about NR saying NO!
As you have read/researched etc bankruptcy is probably your best option, and from what other contributors have to say, not as bad as one might think. I suppose if that is the route yoy take you need to do it positively, and think of it as drawing a line under things so you can start a fresh.
Good luck with whatever you decide, and you know the forum is here to post questions/get moral support etc.
Blue

[Skippy]

I get fed up with the banks announcing record profits. You are lucky like me - we both have supportive partners. I couldn't have done it without Dave.

If the car is your husband's I don't think the OR will have any interest in it anyway. I was allowed to keep my car, even though it is slightly above the recognised maximum allowance as I need it for work, but what you are allowed seems to depend on your OR. I wasn't allowed a contingency fund, but I was given a holiday allowance!

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/

[BlueShoes]

How much was your car worth Skippy?
Blue

[fudge34]

I hope so couldn't bear to think that my husband would be penalised because of my past behaviour. Can I ask if its weird having no overdraft and or credit cards? I was reading about buying a prepaid credit card this evening from another blog and it hit me then that I would be in the same position - having always had plastic and overdraft facilities it would feel weird I think to not have them! are you happy with your BR and glad you did it?

[Skippy]

My car was worth £3500-£4000, although it needed a lot of work doing to it at the time. I've had most of it done, but the moving money pit needs new tyres next month!

I don't miss having credit at all. The only time I've wished I've had a credit card is near the end of the month when I've run out of petrol, but I'm learning to budget now!

I have got a prepaid Mastercard, but I hardly use it. I have bought a couple of things from Ebay, and I have also paid my mobile phone bill with it, but that's about it. I've now got a Visa Electron with my Co-op Cashminder account and I'm finding that useful.

I certainly don't regret going BR. I would never have survived the 5 years of my IVA. I'm 4 months into the BR now and it's flown past, unlike the 4 months of my IVA, which seemed to drag - probably because I was always broke! Don't get me wrong, I'm not loaded now, but at least I have enough money to live and pay my own way.

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/