www.iva.co.uk

Hi all,

First of all just an update on the BR, it has been accepted after seeking further leagal advice on our home. OR has been in touch and has said as there is negative equity in our home, as long as we maintain contractual mortgage payments our home wont be affected at all, they are not interested in it.

They have also said we can keep hubby's car which they believe to be worth approx £3000, checked out with the HP company as it is on HP and they are happy for the arrangement to continue so everything is looking good. We are waiting for something to go wrong now as things seem to be going to well for us! OR said has all necessary info and is unlikely they will need anything further at present, if they feel they need to interview us after assessing bank statements etc they will get in touch, otherwise they will inform us in due course if we are required to make any ongoing payments based on our income and expenditure.

Anyway, my problem is with Northern Rock, we have for the past 3 months paid our mortgage by debit card and specified that the money was to be paid fully off the secured element and none was to go to the unsecured part of the mortgage. They said they were not sure if this could be done but would make a note of it. Now we have received a letter requesting the arrears which is showing as a shortfall on the secured side too as they have split previous payments despite us requesting them not to do this. Do we have to pay this or can we argue that we are up to date with the secured loan? Can they just ignore the requests we made to them?

Any advice would be great
thanks
Andrea.

Hi
Thats a difficult one as I guess nothing is in writing regarding the fact that the payments should have gone compltely to the secured part.
How much is short on the secured part ? and what date were you actually declared bankrupt ?
It may pay you to catch up on the amount in dispute just to keep your good luck run going.
Regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

Hi Andy,

The disputed amount is approx £300 and the date of the BR was the 8th August, We could probably sort the arrears with a bit of overtime but I just think NR are putting as many obstacles in our path as possible. It was only NR out of 11 creditors that said no to his IVA proposal otherwise he would not have gone BR but he basically ended up with no other option.

Andrea

Andrea,

have you spoken to the NR bankruptcy team ?

I have found them to be pretty reasonable.. NR tried to get me to pay the unsecured part of my together mortgage after going BR -- I spoke to their BR team and they sorted it out pronto.

Congrats on keeping the house and car ... my house is going as there is equity .. ho hum

Mish

Hi
I would pay the £300,you are keeping the house and NR will be losing a packet in the bankruptcy,serves them right for rejecting your IVA.
You want to move on without the hassle of trying to sort this.
Regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

Andrea

You need to make it clear to Northern Rock that the payments you have made were clearly towards the secured loan element. If you have specified this to them, then legally they cannot allocate the monies as they choose.

If you need me to step in and write to them regarding this, please contact me directly via e-mail - and glad to hear that the bankruptcy appears to have gone relatively smoothly.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

Hi guys,

Thanks for your responses, Melanie we will speak to the BR team on Monday as Mish is suggesting. We have spelled it out before every payment was made that the money was not to be allocated in any way to the unsecured element, they have aknowledged that we requested this but still tell us it doesn't matter that we requested this, all monies paid have to be split and they claim there is nothing they can do about it. If we still get no joy I will contact you directly, thank you very much for offering to help with this.

Mish, I am really sorry to hear about your home. I must say reading all of your posts I admire you for your positive spirit and great sense of humour, it is admirable. We realise we are extremely fortunate to hang on to ours, my heart goes out to you all who have not been as fortunate as ourselves.

Andrea