www.iva.co.uk

i have tried for an IVA twice now but northern rock always reject it so have been on a DMP for 15 months now northern rock are taking us to court for a ccj if nornthern rock was to sell the debt on at a later stage would we be able to go for another IVA if it's under a CCJ.

If you own a property N Rock will likely move to secure the debt and will not sell it on. Then in the future if the property is sold or remortgaged they will be paid.

Given that your IVA attempts were rejected and your DMP seems to be failing bankruptcy may be the best option now. However, it may be possible that N Rock would accept an IVA now given that you have paid a DMP for so long.

Do you own a property and if so is there any equity in it?

own a house no equity mortgage not with northern rock, the DMP is working ok northern rock are just been akward they accepted DMP for 15 months but when they rejected 2nd IVA that's when they decided to go to court we are still on DMP with 3 other crediters just northern rock will be on a CCJ.so just wanted to know if they did sell it to someone else could we try IVA again because the others said yes to IVA

just to mention the 2nd IVA was rejected after been on DMP for 12 months

If they sell the debt the new owner may be happy to accept an IVA but what makes you think they will sell it on after going through the courts to get a CCJ and possibly an Order Charging Land [OCL].

If they get the CCJ and apply for an OCL it may be your best option to petition as otherwise you will be paying for a house with negative equity and if it ever recovers in value or the mortgage decreases, the beneficiary would be N Rock.

If you have no equity in the property, is bankruptcy not an option worthy of consideration?

im in an IVA, DMP is my husbands if he went BR would that mean losing the house and what would happen to my IVA

I thought you said that your IVA had been rejected?

no im in an IVA and DMP is my husbands sorry for not expaining myself properly

If your husband goes bankrupt it should have no effect on your IVA. If the property is in negative equity you can purchase his interest for a token amount and if you speak to your IP they should allow a missed payment in the IVA for you to pay the Official Receiver. This can be made up later or paid at the end.

if we let the northern rock debt go to a CCJ and they put an order on the house do i have to inform my IP as in my IVA it says i need to look into remorgageing in the 4th year

The charge against the property will only be against your husband's equity so if there was equity in your name in the 4th year it may have to be addressed.However, it may prove difficult to raise your share of the equity as the new mortgage company will almost certainly want the N Rock charge repaid as a condition of completion. You should make your broker and solicitor aware of the complications that would arise in this instance and you should certainly keep your IP informed of all that happens.

Unless I have mis-read something...... You are in IVA, spouse in DMP, NR debt owed by spouse only (or if joint included in your IVA).

If you genuinely have negative equity the most obvious answer must be for your spouse to go bankrupt, unless there are valid reasons for avoiding it. If NR are going for a CCJ the somewhat obvious next step will be to go for a Charging Order. They will be unable to do this if your spouse has gone bankrupt. If they get the charging order before bankruptcy, then effectively the house has been charged with it and the debt will survive the bankruptcy.

If the bankruptcy precedes the charging order (and there is negative equity) then you could buy your spouses share of the house from the trustee for a very nominal sum, and NR will simply be a creditor in the bankruptcy.

What currently seems a threat may actually turn out to be opportunity. However, a health warning. Before doing all of this, I suggest you have a confidential meeting with the CAB, or an IP, or some other reputable advisor to confirm this, after discussion of all your circumstances as any advice you receive will only be as good as the info you provide.

HTH

Ian

Have you been away Ian?

Not seen you post for a while.

Regards.

Combination of things really Mike,. I got that rotten flu bug about 6 weeks ago and I still haven't fully recovered, at least my chest hasn't! Also, I've been here just over a year now so I've been heavily involved in overseeing the annual report/ reviews processes etc. Oh the joys of being a sole practitioner! Should have a bit more time to get involved now.

Thanks for asking.