Hi, this is my first post. Been reading this site for a few months now but finally plucked up courage to post. Can anyone advise on what northern rocks latests criteria is. We have had a mortgage with Northern Rock since Oct 06 and have always kept up to date on our together mortgage but have now decided to enter an IVA with ClearDebt (documents sent back, waiting for proposal to be drawn up) but we are worried it will just be rejected and that they could repossess our property for attempting to go into an IVA. We have 100k of unsecured debt.
We are up to date on our mortgage and unsecured element so could they apply for a charging order? The guy at cleardebt seems pretty confident that we have a good chance of being accepted but we are just worried that they will reject and then come for our flat. Also found out on christmas day my wife is pregnant, should I advise IP now or wait as we have only just found out and obviously worried as not sure how this sort of scenerio affects an IVA as we don't want it to fail and want to pay off our debts in some form.
any advice anyone can offer would really be appreciated.
Well you have come to the right place - I believe you should tell the Nominee (me) that your wife has just become pregnant and your IVA Proposal will be tailored around that. I am sure that your advisor at ClearDebt is right (mind you I would say that) but I will certainly look into your case after the holidays. Suffice it to say you should not worry and no charging order will be made, certainly at this time. So enjoy the rest of your break and I'll (my advisor) will get back to you in the New Year.
Regards, David Mond, Insolvency Practitioner for over 46 years. Personal Insolvency Practitioner of the year 2012, Personal Insolvency Practitioner of the year finalist 2013 & 2014 awarded by Insolvency & Rescue Magazine and 2015 finalist for Personal Insolvency Firm of the Year.
Northern Rock don't really have a "latest" criteria - they simply operate on the basis that so long as the IVA represents the best way forward for them then they are very likely to vote in favour of your proposals.
The unsecured element of your together loan will be included in the IVA, and one thing to watch is that the contractual payment that you are currently making to Northern Rock is not lower than or equal to the proportionate amount of your monthly disposable income which could be offered to them on a pro-rata basis. This will not pass the Northern Rock insolvency test, and they may therefore reject the proposals.
I am sure that this will have been considered by the IP you have chosen to represent you, and I wish you well for the creditors meeting - and the happy event in due course!
Melanie, hate to disagree with you but they do have a criteria and it has changed. This has inter alia been due to constant meetings and communications with them as a firstly Head of Standards then latterly as the Chairman of the Debt Resolution Forum ("DRF").
See this email from NR dated 19.11.08:
David,
We are in the process of piloting a new Decision Matrix for assessing IVA Proposals.
As part of this process we have reviewed this proposal and as a result we will now be accepting the IVA subject to modifications.
I understand that the meeting of creditors is now adjourned until 25th November so that the necessary paperwork can be completed.
Senior Section Manager
Insolvency Team
The following is the latest position following an email just before Xmas dated 23.12.08:
David,
I've just spoken to Adam Preston who has advised me to drop you an email as you are out of the country.
I wanted to let you know that we have now completed our review of our decision making process for IVA proposals and will be going live with this from today.
The new method takes more account of affordability so you should find the decisions you receive will be more appropriate to the customers circumstances than previously.
Regards
Senior Section Manager
Insolvency Team
Moral is Melanie join the DRF!
***Name and contact details removed***
Last edited by David Mond on Sat Dec 27, 2008 7:18 pm, edited 1 time in total.
Regards, David Mond, Insolvency Practitioner for over 46 years. Personal Insolvency Practitioner of the year 2012, Personal Insolvency Practitioner of the year finalist 2013 & 2014 awarded by Insolvency & Rescue Magazine and 2015 finalist for Personal Insolvency Firm of the Year.
Hi David and Melanie, thank you for your prompt replies very much appreciated. I know you are both highly regarded in these forums so its was a nice surprise to get a reply from you both.
David, thanks for update regarding latest criteria, although nothing is guaranteed you have made me and my wife's christmas as at least we know there is some sort of newly introduced criteria. May I say the service received so far from cleardebt has been first class and hopefully we should have a clearer picture of what will happen shortly. I will advise IP of my wife's pregnancy as suggested.
Regards, David Mond, Insolvency Practitioner for over 46 years. Personal Insolvency Practitioner of the year 2012, Personal Insolvency Practitioner of the year finalist 2013 & 2014 awarded by Insolvency & Rescue Magazine and 2015 finalist for Personal Insolvency Firm of the Year.
