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Posted: **Sat Jan 24, 2009 4:40 pm**

We have just failed an IVA as Northern Rock had the majority vote but wouldnt accept our offer. We have an appointment in February with a financial advisor at the CAB but in the meantime can anyone help us with the following questions.

Can our creditors refuse to enter into a Debt Management Plan?
Can they force a sale of our property even though we have 3 children the youngest being 4?
Is there a maximum amount of years over which a DMP can run?
If we were in a DMP and we had a windfall, can we pay off one of our creditors ie:Northern Rock so that they would no longer have the majority vote in an IVA situation and then come out of a DMP and try for an IVA again?

Posted: **Sat Jan 24, 2009 5:00 pm**

Hi and welcome.

Sorry to hear that your IVA application failed.

In answer to your questions:

Creditors can refuse to enter a DMP, if they do enter one, there is no guarantee that they will refuse to stop interest or charges.

I doubt they would force the sale of your property as long as you are keeping up with the mortgage payments. They could put a charge on your property though so that the debt becomes secured.

There is no maximum amount of years a DMP can run. We were in one before our IVA was approved, and some of our debts were going to take 20 years to clear.

If you did a DMP, then got a windfall, it would not be looked on favourably if you used the money to pay off just one of your creditors as this would be seen as preferential treatment to one, and would not be good if you went for another IVA.

Do you have much equity in your property? If you have little, or none, then bankruptcy could be another option as you may not lose your house.

Posted: **Sat Jan 24, 2009 5:12 pm**

Could you tell us what reason Northern Rock gave for rejecting your proposals, and what solution that they have suggested would be better for them? Also which IP firm were representing you?

Posted: **Sat Jan 24, 2009 8:48 pm**

MelanieGiles wrote:

Could you tell us what reason Northern Rock gave for rejecting your proposals, and what solution that they have suggested would be better for them? Also which IP firm were representing you?

Hi Melanie,
Northern Rock rejected our proposal due to the fact that the loan we had with them had only been running for 8 months and in their opinion we must have known that we couldn't keep up the repayments.
Debt Free Direct informed us that Northern Rock wanted all their money back so we would assume they preferred a DMP.
Kind Regards Tim

Posted: **Sat Jan 24, 2009 11:03 pm**

It was not really wise to put an IVA in front of Northern Rock if the loan was only 8 months old, as it is well known that this is a sticking point for them.

You could try a DMP and then represent the proposals in a few months time, but it might be better to take advice from another firm just for an alternative opinion if you are minded to have another go.

Posted: **Sun Jan 25, 2009 12:46 pm**

Sometimes NR can be awkward on loans recently taken out. What changed circumstances have you had since taking out the loan 8 months ago until the time of presenting a proposal for an IVA?

Go onto a DMP for say 4 months then re-apply for an IVA.

Posted: **Mon Jan 26, 2009 7:05 pm**

David Mond wrote:

Sometimes NR can be awkward on loans recently taken out. What changed circumstances have you had since taking out the loan 8 months ago until the time of presenting a proposal for an IVA?

Go onto a DMP for say 4 months then re-apply for an IVA.

Hi David,

When I applied for the loan I had got weekend work Plastering on a regular basis, they took this into consideration when applying for the loan even without proof but soon after the loan had started the worked dried up completely.

Kind Regards Tim

Posted: **Wed Jan 28, 2009 9:34 am**

Good morning everyone.

I have made David aware of this thread and he has promised to come back to it as soon as he can but he is in London today so it may be a day or so before he can post on it.

The way you describe things does indicate that there has been a change in circumstances though.

Regards.

Posted: **Wed Jan 28, 2009 9:41 am**

Thanks for that. I would definitely start a DMP then switch to an IVA. try a new provider who would start the process for you.Check out www.iva.com for reviews on othe good providers.

Posted: **Wed Jan 28, 2009 7:25 pm**

[quote]Originally posted by David Mond

Thanks for that. I would definitely start a DMP then switch to an IVA. try a new provider who would start the process for you.Check out www.iva.com for reviews on othe good providers.
[
/quote]Hi Size 5 and David
Thanks for the reply and Iwill discuss DMP with the CAB on my next appointment.
In respect to my Northern Rock loan does it look better in your favour if your circumstances have changed and would this encourage Northern Rock to reconsider if I went for another IVA.

Regards Tim

Posted: **Wed Jan 28, 2009 11:25 pm**

Yes - this should have been properly explained to Northern Rock by your IP.

Posted: **Fri Jan 30, 2009 9:43 am**

MelanieGiles wrote:

Yes - this should have been properly explained to Northern Rock by your IP.

Hi Melanie

We have also been thinking about the option of bankruptcy but don't really know much about it. We have possibly £12,OOO equity in the house but we don't want to sell or be forced to sell. We want to keep our house and have not fell behind with the repayments on our mortgage can you offer any advice?

Regards Tim

Posted: **Fri Jan 30, 2009 12:44 pm**

My personal view would be to get another IP to look at the IVA proposal originally put before Northern Rock, to see if they feel it is worthy of representation.

If, however, you are fed up of the process, and are looking towards bankruptcy as a preferred option, then your interest in the property will vest in the Trustee who will want to realise this for the benefit of creditors. Would a family member or friend be able to help you out with the money required to purchase the interest?

Posted: **Fri Jan 30, 2009 6:37 pm**

MelanieGiles wrote:

My personal view would be to get another IP to look at the IVA proposal originally put before Northern Rock, to see if they feel it is worthy of representation.

If, however, you are fed up of the process, and are looking towards bankruptcy as a preferred option, then your interest in the property will vest in the Trustee who will want to realise this for the benefit of creditors. Would a family member or friend be able to help you out with the money required to purchase the interest?

Hi Melanie,

Not sure what you mean by purchase the interest. Could you please explain what this means. Sorry for not understanding.

Regards Tim

Posted: **Fri Jan 30, 2009 6:55 pm**

Your interest equates to your share of the equity.