www.iva.co.uk

Hi all. Just thought I would ask that if Northern Rock accept my IVA then want us to pay for an extra year, as a few people have said on here; do we still have to release equity (if available) in the fifth year? or just carry on with the 6 years of the IVA? or will we have to release equity and pay for a further year? we had about five years left of the loan to pay with northern rock. confused![?]

hi jackie. I have recently been through this with nr as has pap win also posts on here. I understand their criteria is for loans with greater than 5 years left to run to go for a 6 year iva. Unfortunately they still insist on the equity release clause now at 66 months. They really played hardball with us but they know they were in the driving seat of main creditor

I am afraid that you will need to still look at realising equity during the sixth year if Northern Rock wish to extend and have the voting power to do so.

Hi Melanie, what do you think of this practice by NR? Are there other creditors that insist on this kind of thing or are they the exception. In my case even though capital was fully repaid over 5 years they still would not budge.

You have to remember that there is interest as well that is frozen at the time of the creditors meeting. Also NR will only insist that the extra 1 year is where their loan to pay off exceeds 6 years. They also insist that if the loan can be paid off interest free within 10 years they will refuse an IVA, provided other creditors agree to freeze interest fro 10 years (very unlikely). All of this is where NR have at least 25% of the voting power.

MBNA sometimes insist on similar criteria for the extra year.

Thank you all for your answers, [:D] was worried that it may have to go on for 7 years if there was no equity?? the loan with them has been running for just over 5 years and has 4 and half left and only the last payment ( or 2) not paid.[:(]. Swardean. congrats at least you have a result. good luck for future [:D][:D]. My main creditor is MBNA.

Hi Jackie, glad you asked that question as I also have NR and MBNA is my main creditor as well (and giving me lots of grief!) I'm actually in a good position to petition for BR if mine gets rejected as I have no tangible assets and there is no equity in my property, but I do feel a moral obligation to pay some money back to them in a controlled manner. And the risk of losing the house is a little too great for me given my personal situation currently.

My own view about the Northern Rock additional year policy is that as they tend to lend monies over long periods of time - usually for quite large amounts - and their customers agreed to those terms, it is perfectly reasonable to expect a longer period for the IVA. But I think 6 years should be the maxiumum.

It normally is in an IVA Melanie - Debt Management Plan I am not sure!

We have about 38000 debt and £30000 of that is with NR. I'm worried are they likely to be awkward?

Not necessarily, so long as the offer you are making fits their own criteria.

bouncyball wrote:

We have about 38000 debt and £30000 of that is with NR. I'm worried are they likely to be awkward?

How long did you take this loan out for?

Hi David. 10 years

Hi Jackie, how much longer does the loan have to run.

I am still thinking like mine is a 5 year IVA. Once complete, I will just tell myself only one year to go. Somehow this doesn't make it as bad in my mind [;)]

[:I] Sorry David didn't look properly! that question was for bouncyball!