www.iva.co.uk

My partner and I are wanting to enter into an IVA and have been speaking with Step Change, however due to the fact that we owe Northern Rock just over 80% we have been told that they will not agree to an IVA.

I rang NR and was told the same.

Is there any way around this? NR haven't even seen our proposal/individual circumstances....

Our proposal would be over 5 or 6 years at £274pm (if we went into a DMP paying this amount it would take just over 9 years to pay back in total - so would this also go against us having an IVA?

If they decide to vote no, they do have the deciding vote. However, many IP's (other than StepChange) have managed to get them to agree. I would suggest chatting to a couple more firms.

Poppycock, rubbish, drivel and various other adjectives immediately spring to mind here. If you have been told that by CCCS then they are out of touch with reality at best. At worst, well you have to ask why they would say that.

Northern Rock may not accept IVA's directly, or they may tell their staff that, but I can assure you that they do, via their voting representatives, who are, in fairness, likely to insist on 6 years. Also bear in mind that an IVA is likely (not guranteed, just likely) to cost less per month than a DMP, especially one through CCCS who seem hell bent on putting as many people as they can into DMP's.

You pays your money and you takes your choice is never more apt, it seems, than it is here. Get 2 or 3 different opinions, and decide when you have heard and thought through ALL your options.

Regards.

Purely an observation, but, since I have been on this forum, I have noticed a trend with the charities, of suddenly deciding an IVA is the way to go, after 2 or 3 years in a DMP. Of course, this could be down to changing circumstances.

I am on the cusp of proceeding with an IVA and NRAM is my main creditor. The advisor I have been liaising with didn't at all suggest that they wouldn't accept an IVA. I would certainly seek advice from somewhere else. Don't assume that you will have to pay anything upfront just because other advisors are not a charity, it doesn't usually work like that. It doesn't surprise me that their telephone advisor told you that - it's in their interest for you to struggle on for as long as possible!

If what you have been told is correct then the advice I've received is completely wrong!!

Personally I would try and IVA, but if it does not work then you have the DMP to fall back on. I know of no policy in NRAM which would dictate that they would reject a case if they had 80% of the influence, and given that they are now represented by The Insolvency Exchange, I would have thought that we will see more acceptances rather than rejections.

Put it like this - I would be happy to present an IVA for you, but it is difficult to advice fully without knowing the full facts. NRAM do have different criteria at the end of the day, so the advice you have already received may have some substance.

I think perhaps we should speak to someone else with regard to an IVA, though on the one hand I'm quite nervous about the strictness of an IVA, but on the other I really would like to pay off all/as much of our debts in the shortest time possible.... we've been struggling for years now, our house is falling down around us, our cars aren't in the best shape and we just want to be able to breathe easy again.

My husband doesn't always earn the same amount and I put down his basic wage, but I've read about 1st Year IVA Reviews where you have to supply wage slips, etc... what happens if for say 10 months of that year he's been able to pick up extra shifts/unsociable working hours, which has meant he's come out with £100-300 extra in any given month.... will they want us to pay this extra amount into the IVA.... and when do you have to declare it....if it's every month then that seems so much more hassle than being pursued by creditors every 3 months for an up-date....

Also do we need to supply bank statements, as since we've started earning more again (originally struggled due to my wage being reduced) we've been spending bits on ourselves and won't this look bad?

Also, now work has picked up again I may (not guaranteed) start to receive a bonus once or twice a year, what happens with that?

Also, we got married last year but I've not informed my creditors of my change of name yet as it made me nervous in case the presumed we could afford to get married, but actually my grandparents and parents paid for it and it was an extremely small affair..... how do I go about telling them now.... it's been just over a year!

I can't help feeling that it would be easier just to increase our payments and carry on with the self managed DMP we're doing now.... as with an IVA I'm not sure we'd pass being scrutinised!!!

All very valid points/questions, but an IVA isn't a punishment, simply a fair deal, which, in the end, will give you far more certainty on a number of issues than any type of DMP.

For your husband, it is wise to use his basic take home as a benchmark, as extra cannot always be guaranteed, especially not in these uncertain times. The way extra earnings are looked at is usually on a 10% then 50/50 basis. So, for example, if your hubby takes home £1500 on a basic month, then anything up to £1650 take home on any given month is effectively disregarded. After £1650, it is a straight split down the middle. So, using this example and your £300 extra, then in this instance the £300 extra results in an extra £75 going to the IVA, and £225 is yours to do as you please with. It is probably easiest to call your IP each month and pay any extra due straight away, no nasty surprises at annual review time then. The same principle applies to bonuses received in pay packets as well.

To look at an IVA you will need to supply bank statements, but what you spend your own money on, including any extra, is entirely a matter for you. Should a very large amount of cash been transferred into your account in the recent past, and then spent, it is right and proper that a question is asked, but if the money was a gift and to spend on something like a wedding then fair enough as far as I am concerned. I doubt any eyebrows will be raised if it was over a year ago anyway.

All in all, it is well worth speaking to 2 or 3 firms, you have nothing to lose by having a chat, even if you then decide to stay as you are.

Regards.

NRAM have a habit of not allowing the 10% and demanding 50% of everything. This may change not that TiX are voting and your IP can keep you informed. You should also consider bankruptcy and hopefully Stepchange have explained all the pros and cons of this option.

I would certainly not discount looking at an IVA just because of NRAM. They are not as bad as they used to be and especially now TiX are voting for them I would certainly give it a go if you want to.

I would get in touch with a couple more IVA providers and go with one you feel comfortable with. We put forward proposals where NRAM have a deciding vote. Obviously everything depends on your individual circumstances

Thanks for all the replies and advice. After reading some posts on here I realised I didn't mention that we own my parents £1,200 for replacement boiler we needed in Dec and currently we're paying them back £80pm.

Would they become creditors in an IVA or could we continue paying them as we are? The debt will be paid back by Sept 2014 and then that £80 can be incorporated into our monthly IVA payments?

I only ask as though my parents wouldn't struggle without the payments, it was only meant as a short term loan and since my mum's retired and my dad will be retiring in Sept 2013, I would hate to not be able to pay it back asap.....

They would normally be listed as a creditor but given the circumstances creditors may allopw them to be paid as an expense.

font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by stejay

My partner and I are wanting to enter into an IVA and have been speaking with Step Change, however due to the fact that we owe Northern Rock just over 80% we have been told that they will not agree to an IVA.

I rang NR and was told the same.

Is there any way around this? NR haven't even seen our proposal/individual circumstances....

Our proposal would be over 5 or 6 years at £274pm (if we went into a DMP paying this amount it would take just over 9 years to pay back in total - so would this also go against us having an IVA?

Hi Stejay,

We just wanted to step in and say that on Monday Northern Rock changed their creditor agent to The Insolvency Exchange (TIX). We've spoken to our contact at TIX and they confirmed that they will be willing to look at the case despite Northern Rock holding 80% of your debt.

This change of policy sometimes happens when creditors change agents, and this change has been very recent.

I'd recommend that you give us a call so that we can discuss this further.

I hope this helps.

Kind regards,

Peer

I never came across this when IVA Watch/Watch Portfolio were running the NRAM account Peer. Is this something that you frequently experienced in StepChange - which is interesting given your firm's relationship with GT?

well youve certainly been given some great advice as above

I would sugegst as well as Step Change, try another few IVA
companies as mentioned above

Melanie Giles is steeped in praise from all her clients both past & present; I would most certainly suggest you appoach Mels company also. I cant comment on Step Change as i dont ever recall any postings about them on the forum

good luck and let us all know how you get on, but im sure you will feel better now