www.iva.co.uk

Just seeing if anyone has any advice on what I'm likely to face with them. We owe about 6k to them have had a CCJ stating we should pay £250 per month to them when weare already paying £50 in our DMP to them of our £315. We are going to appeal, but I'm terrified that we will have to go bankrupt. We had a letter from Link stating that we were due to be paying them the £250, and that they will still charge interest of 19.1%! If we can get a variation order, the debt will just grow and grow on that rate. I think they want a charging order, but I cannot see how much use that'll be as our house is probably worth no more tha 95k realistically, its mortgaged for 135k, and we owe another 30k on top.
I am losing sleep over this - all our other creditors have been fine, its just Link that went straight for a ccj and god knows what next.

Speak to who is doing your DMP and ascertain why they have obtained a CCJ?

It may well be worth doing an IVA or even Banruptcy - seek advice from an IP - visit www.iva.com for reviews on different practitioners.

Payplan are dealing with our DMP. The original loan was with GE Money. I had a phone call(well hundreds) from Link once they had bought the debt and they demanded the whole amount. I said I couldn't and they said they would be taking us to court, and that they would try for a CO. Payplan had already sent out our financial statement of affairs to all our creditors. Link denied they receieved it and Paypla sent it again. The only thing Link did was to suggest a consolidation loan!!!! Link actually told me they would reject any offer we made regardless and they would pursue court action no matter what.

Contact Payplan as I believe that Link have to follow what was originally agreed with GE Money in respect of a protocol that exists between buyers and sellers of debt.

I don't think we'd be eligible for a iva as we can only offer 502 a month for roughly 70k.

I would agree with David. In view of Link's it may however be worth considering an IVA or, if your house is in negative equity bankruptcy. What was the reason that Payplan did not suggest an IVA in the first instance?

Ah you aanswered the question before I had asked it. A surplus of £502 a month for a £70k debt would still give a dividend in an IVA of about 28 pence in the £, which is reasonable. I know that Link ask for a very high dividend but they are only about 8.5% of your debt.

I think you should take further advice on the options open to you

The other problem comes in that the bulk of the debt is to Northern Rock - fantastic! The loan with them is only roughly 18 months old to and is one of the together mortgage products. We looked at an IVA previously and it seemed we had no chance with them.

Ah. I understand now why Payplan did not suggest an IVA for you.

Have Northern Rock secured the un-secured part of the mortgage yet?

It may be well worth contacting Payplan or an IP to take advice about bankruptcy. It might be something you want to consider more seriously.

Northern Rock won't secure the money as we are in negative equity. Problem comes with Bankruptcy is I'll lose my job - I work in the Civil Service.

Northern Rock could seek a charging order just as Link are trying to do. Sorry I don't mean to make you feel worse.

Check with your union or employee representative regarding the position with your employment if you went bankrupt. Also check your contract of employment.

Since they changed the insolvency laws (and allowed MPs to retain their seats if they were made bankrupt)the views held by the Civil Service have changed considerably. It will depend on the position you have though. For example some police forces will dismiss an officer if he or she goes bankrupt whilst others really don't care, and HM Revenue and Customs say that they will not dismiss any of their employees if they go bankrupt but may take it into consideration when considering applications for promotion.

I am not saying that bankruptcy is the best way forward for you, I am just saying that you should explore it further as an option.

They ask about financial status on the security clearance forms. I work for the MoD and on occasion see secret stuff so I'd be rejected on grounds of being a potential fraud risk.
The thought of Bankruptcy is very upsetting. We would have nowhere to go.

I am confident that an IVA would work and NR would go for it. Contact an IP to discuss - giving them all your details of all debts any jointly owned and details of your I&E. Do so asap.

We were told that Northern Rock would never agree. What would happen to the CCJ with Link if we should a miracle occur and we did get accepted on an IVA?