www.iva.co.uk

I am in a DMP with CCCS and I have told them I won't be making a payment for May because I am going through with applying for an IVA. I have had very little contact from our creditors, apart from Citibank, since setting up the DMP in December.

But, because our biggest cr is Northern Rock, our IP (Melanie) is doing a mini-proposal to them to see how they will vote and what they will do with the £25k unsecured element on our "Together" mortgage. We will therefore have an understanding of how to put forward the proposal. It takes NR about a month to reply, so I'm guessing I cannot realistically envisage our cr meeting taking place until at least June.

I just wanted to know if I am doing the right think in not paying into the DMP? I want to save the DMP payments for my first IVA instalment but I am worried that if NR put the stoppers on the IVA and it doesn't go ahead I will be back to square one with the DMP (and a load of irrate creditors that won't accept our DMP offers). Do I make one last payment to our DMP just to keep them off our backs for another month? Our DMP is £385pcm.

It will not affect Northern Rock's ultimate decision if you make a payment or not to be hones Suzanne.

Thanks for your reply - I'll save my money for my first IVA payment (positive thinking)! However, I am up to date with the unsecured NR loan anyway because it comes out by DD with our mortgage payment!!

As I'm not paying my unsecured creditors this month, should I only pay the secured element of my NR mortgage and not pay the unsecured element?

Yes - that is the most appropriate treatment, and Northern Rock will understand why you are doing this.

Thanks Melanie - I can put the unsecured element away towards my first IVA payment (positive thinking)!

hi suzanne

just wanted to say that nr was hubbys biggest creditor and we did not make any payments to them from the time we started to apply for an iva and nr voted yes at our meeting on monday so like melanie says whether you pay them or not it wont have any bearing on their decision.

hope it works out for you

love barb x

Thanks its reassuring to know that! The payment is due tomorrow so I have cancelled the DD and I will go into the branch with cash and just pay the unsecured bit. Then I can set up a s/o for the mortgage.