www.iva.co.uk

Hi all

I have an appointment via phone with the CCCSVA tomorrow and wanted to k now what my chances were of entering into an IVA taking into account the following information.

House valued today by 2 estate agents - £150k
Northern Rock mortgage - £103k
Northern Rock secured loan - £25k

Unsecured debts - £60 (£30k of this with NorthernRock via Together product).

Have held mortgage for almost 3 years.

We've had 2 payment holidays (one this month) and have never missed any payments on any of our secured or unsecured debts.

My wife is currently on maternity leave and when she returns to work in November we will be short on our current budget by £500 based on the current £850 we're paying each month on unsecured debt payments.

Having filled out the debt remedy via CCCS site It states that we have £198 remaining each month - that works out as approximately 20p in the £ against the £60k we owe if we paid it each month for 5 years.

From what I've read on other forums, it's unlikely the NR will agree to an IVA with this little return.

Has anyone got any feedback or advice?

My only concern is loosing the house - we have 3 kids (youngest 10weeks) and I'm desperately worried about our future.

Regards,



Wayne

Hi
How much are you paying each month towards the unsecured NR debt ?
Your dividend will not be 19p as you have not allowed for costs, approx 5-6k. This will actually mean a dividend of around 10p.
On the figures above I would be surprised if NR agree to an IVA I am afraid.
Regards

They voted "no" to me with a higher dividend, but that was because they wanted me to switch from my repayment mortgage to that of an interest only 1.

They are difficult to please, but fair in my opinion.

They held 24.5% of the voting with my IVA but all my other creditors accepted and they were out voted!!

Good luck

Currently paying £196pm towards NR unsecured debt.

£689pm towards mortgage and £176 towards secured debt.

Mortgage is repayment mortgage.

All of the above are as per the terms of the Together product we took out and none of these have been altered.

Regards,


Wayne

Hi
It pay pay you to change to an interest only mortgage to free up more disposible income, however if your DI comes in at above £400 you may find that NR reject as their share of the DI [50%] will mean that it will cover your contractual payment to them of £196.
It will be interesting to see what the CCCs VA dept have to say
Regards

N Rock may accept as there is a possibility of equity in the future but also they have a large secured exposure. If you do switch to interest only this would reduce the amount you would be paying N Rock and also decreasing the amount of equity available in year five or possibly year six as N Rock do extend IVAs.

Certainly interesting to see what you are advised.

Northern Rock do not have a minimum dividend criteria, but there are other things they will look for which no doubt your IP at CCCS will be able to explain to you.

Let us know what is actually advised, and whether CCCS feel you have a good chance of acceptance.

Just a thought...

If my unsecured debt is £60k and £30k (50%) of this is with Northern Rock will they be entitled to 50% of whatever I pay into a IVA?

The reason I ask is because if this is the case, then they would be getting approx 50p in the £ (before IVA fees obviously).

It would seem silly if the above wasn't true seeing as how the value of the debt is used as the basis for the voting and so should be used for the basis of the payments too?

Cheers


Wayne

Your creditors will all get the same dividend regardless of how much you owe them.

The dividend is worked out on how much you can afford to pay, less the IP's fees.

...I was wrong anyway.

If you work it out over 5 years it works out as more like a 20p dividend before fees

Cheers,


Wayne

NR usually insist on a 6year IVA.. so may help you calculations a little....