hi sorry to here you IVA was rejected,my husbands IVA was rejected twice from NR because he had not paid 6 full payments on the loan he has been on DMP for 16 months but NR are now taking him to court for a CCJ on the loan NR don't seem to like IVA's.
You have possibly missed the fees Andy - but they would need be enormous to make such a difference. Could whatevertodo confirm how much the monthly contributions were proposed and the level of IP fees to be charged.
Thanks Andy - I had missed that one, and completely concur with your calculations. Are the CCCS getting away with massive fees on their IVAs, one wonders!!!
It seems to me that this IP firm are pretty ordinary in putting a proposal forward that is going to fail! given NR & black horse require at least 12 months of loan repayments, must have been a fingers crossed job?
42p/£ or 80p/£ something seems strange here? would it be worth approaching a more professional outfit? at least they may be able to arrange a DMP or something? my attitude would be stuff them & go Bankrupt!
The total costs were around £7500. The monthly contribution was 14 payments of £508 followed by 58 payments of £387 (due to fixed rate on mortgage ending at this time) I just checked and the actual dividend was 40.3p for the first year or so, and 33.69p for the remainder.
andydavie had a great idea, which I think we may consider. (A DMP)
Do you think there'll be any chance of stopping the Charging order due to the fact of giving them unfair priority/advantage? Plus how likely would it be in a DMP for another creditor to obtain a Charging order! I'm in negative equity anyway.
Fox84 wrote:
my attitude would be stuff them & go Bankrupt!
That was my first thought too! [:(!] They've been nothing but unsympathetic and unhelpful the whole way through. Mark and Spencer money and British Gas/AA have been fantastic throughout it all, they were willing to accept temporary reduced payments from the start. ( which is all we wanted) We wanted to clear the smaller (more expensive debts) It's way too late for that now though with the arrears.
I'm just wondering what would happen if we wanted to go back to making full payments, if say we got a massive pay rise etc, what would happen to the arrears?
Hi
A DMP is very possible for you, bankruptcy will always be there as a back up.You are unlikely to stop the charging order now but it won't be the end of the world.
In a DMP you have far more flexibility than you do in an IVA, so if your circumstances change for the better you can step out of your plan and deal with your creditors directly again.
Regards
What happens with a charging order, Do I still have to make payments monthly (if so who decides the amount?), Will the amount run the length of my mortgage and what rate of interest will I be charged?
Hi
You can pay lower than the contractual amount, this will be set by the court.
If you go into a DMP a pro rata payment,taking into account your disposible income, can be put forward and is likely to be accepted.
Interest will accrue although I am not sure on the rate and it will run until the debt is paid of.
Regards
Northern Rock generally do not take ongoing payments from customers with charging orders, but you ought to provide for an equivalent sum to their would be pro-rata payment, and it would be sensible to keep paying this on an ongoing basis to try and reduce the debt - unless you are happy for it be be repaid in full (plus accrued interest) when and if your house is sold?
Thanks for all your answers. We aren't planning to sell or move, I wonder if Northern Rock would allow the amount to be added to the mortgage in the future, like a remortgage. Which we did want originally!
I am sure that they would consider this, and it is worth asking - so long as you are in a position to pay all of your other creditors over an extended time period.
Well, we have discussed the options with CCCS and they're sending us the forms for DMP. We will see what happens from there. They figure it will take us about 11 years to repay at the amount we can afford at the minute! We'll also have to wait to see what NR are doing with the charging order.
