Hi new member NR turned me down!

[ladylorraine]

Hi all

New member today. Owe £44000 to 9 creditors 50% was to Northern Rock. Creditors meeting was today 19th felt sick this morning but after the meeting felt suicidal.

Nr turned me down saying I didnt meet there requirements? Can anyone tell me what are their requirements I offered them 54p in pound this amount to be paid in full from a remortgage.
What happens now do I get chance to offer more or is that it?
Im so lost after reading others offering less and being successful.
Please someone advise I dont want to go bankrupt while kids are at home.

[aguise]

Hi Lady lorraine
I am so sorry you have had such a bad day. I cant help with their requirements but your company should know why they turned it down. I know from other posts that they are very thorough wiht the proposals, and dont seem to like less than 40p in the pound but you were offering more so there will be another reason. Ask your Ip and see if they are going to persue it to try to get a yes vote.

Dont feel low you have done your best and there will be a way forward. You will always get support on here.

Ang

[MelanieGiles]

Hi Lady Lorraine

The dividend level does not appear to be a concern of Northern Rock. What they do not seem to like is large loans taken out fairly recently, with only a few repayments made, and then customers declaring insolvency. I think that this is understandable - especially as their loans are generally used for consolidation, so they are effectively using their money to pay off other creditors.

Is this a normal unsecured loan - if so how long was it taken over and how much have you already paid off? Or is it a "Together" product which is linked to your mortgage.

Why not consider offering them a five year IVA, with an equity release at the end, if you have disposable income sufficient to fund this. The creditors will then get a much better return, and may even get a higher equity release if your property increases in value over this time.

And also get your IP to find out exactly what Northern Rock's objections were, to see if an improved offer could be made. You have a 14 day adjournment period which can be used for ongoing negotiation.

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

[westonr]

Hi Lady loraine, sorry to hear about your decision today, I can only imagine how you must be feeling. My meeting is on the 26th and like you, NR are my largest debt - 44% of ttal debt. i am offering 58p over 5 years so I am too concerned at what the decision from them will be. I have had no contact form them -not sure if this is a good sign and my IP tells me that i have nothing to be concerned about -easier said than done. I hope that you find a way to sort things out -we are all looking to make a difference in our lives and pay back what we can afford, I wish you well.

Melanie - I have calculated that i wil pay almost all of the capital back to NR with my proposal, it will only be the interest they have added that will not get paid - do you feel that in your opinion this will be acceptable to them. Sorry to ask all these questions, but as it gets closer it gets more worrying

thanks for your time

[MelanieGiles]

I think that you have a good argument with the capital repayment there, but at the end of the day it is down to the decision makers at Northern Rock to rule. Certainly the better the offer the better chances of acceptance.

Good luck!

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

[westonr]

Thanks for the advice Melanie. Can I ask how the voting works on the day, do most of the creditors just fax or email there decison through or have they already notified my IP in the days leading up to the meeting?

thanks

[MelanieGiles]

It's a mixture of both to be honest.

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

[ladylorraine]

Hi Melanie thanks for the advice I really need it right now. The loans with NR were taken as consolidation over 8 years and still have 6.5 to run.S orry to ask but do you think that I will still be able to get my remorgage for the other 50% of the creditors and only pay NR on a DMP? would this work? My IP says that they dont have any reasons for being rejected are they just palming me off? Im afaid paying an IVA over 5 years isn't an option I dont have the funds, the remorgage was the best I could do.
Thanks so much for all your support.
Good luck westonr for the 29th.

[Adrian Ratcliffe]

Hi Ladylorraine,
I have a mortgage background and plenty of contacts.
Have you missed any mortgage payments over the last 12 months?
My concern is the meeting made you feel suicidal? with kids to which I have 2 of myself and bless them every day, being bankrupt is nothing.
I wake up every morning feeling sick about it all some people are born lucky.
Chin up, post some figures on property value equity etc and im'e sure somebody on here will be able to help.

Regards
Adrian

[MelanieGiles]

Hi again

I think that there are several things you could try.

Firstly - could you borrow more on the mortgage? You can generally find lenders who will lend up to 95% loan to value, and if the repayments on a repayment basis are too steep then you could always consider interest only. An improved offer may be more attractive to the creditors.

You could put Northern Rock outside of the arrangment, and continue to pay them via monthly instalments, but only with the express agreement of all other creditors, as this effectively puts Northern Rock in a more favourable position, leaving the others to acccepting lower returns. Whilst not immediately attractive to the other creditors, they may well take a commercial approach on the basis that 54p in the hand is better than waiting for it to be drip fed via an ongoing DMP.

You could enter into a Debt Management Programme until April next year, when the new SIVA procedures are likely to be in force. As these only require a 50% majority, then Northern Rock may not have an influencing vote.

If your own IP is not going to negotiate further for you, in the 14 day period he has available, can I suggest that you make contact with Northern Rock directly to seek advice from them. They may well favour a Debt Management Programme, and there is nothing to stop you from re-mortgaging to reduce the creditor balances, leaving yourself with lower ongoing repayments which may be more manageable.

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

[ladylorraine]

Going to bite my tongue and ring NR see what they can do. Hoping the mortgage offer is still valid. Will also ring them see if they will still give me it as my IP arranged the mortgage think they may only be IVA specialists.

Had £24000 equity house worth £100000 have a £68000 mortgage and was offering this to creditors as a 1 off payment. Never missed a payment on mortgage thought I was safe.

Thanks Adrian I consider my self to be a very rich person to have had 3 lovely boys.
Ive been very frivulous with money, gave them all I didnt have and now they are having to pay, through no fault of their own.
Going to be strong and pick up the phone.
regards
Lorraine

[Dominic]

Good luck lorraine

[ladylorraine]

Thanks very much for the support.

Phoned NR was waste of time they said its gone this far now I cant offer a monthly payment or go into MP. Have to wait for the CCJ outcome but it would look favourble if I start making token payments. Not sure they understand or care why I went for the IVA.

I understand they want their money back but could a multi million pound company not have met me half way?

Sorry feeling very low at moment trying to pursuade hubby to find work. I dont wanna pressure him Ive been rock bottom also I know what its like.

I made a major mistake and im trying as best I can to solve it. I dont wanna rip them off. If I had the money my family home wouldnt be at risk.

Would love to speak to those in charge but guess what they havent got time for the working class like me.

Lorraine