www.iva.co.uk

Hi i have been in the process of an iva since september..i still havnt had the proposal,They say it has been made up but it is in the hands of the manager because they are having problems with northern rock who are 25% of our debts.I havnt paid any debts since september apart from one which had already gone to court and is £30 a month.I rang them to say i needed to stop paying it because i am in process of iva but they said because it is a court order if i stopped paying the bailiffs will come.Does anyone know if this is true?

Until an IVA is in place, you do need to continue to pay any court orders. Failure to do so whilst not protected by an IVA could result in further action being taken against you.

Jo Rolland
Debt Alternatives
www.debtalternatives.co.uk

HI JMB

If you haven’t had a proposal since September then I would suggest there is a problem.

Have you paid the IVA company any money ?

The process for an IVA would to gather the information, produce a proposal, send the client for signature and set a meeting of creditors (Sounds easier than it is)

As you have not even seen or signed I would suggest that a meeting hasn’t been convened. Northern rock are currently rejecting IVA proposals and if you have more then 25% I would suggest the chance of your IVA being approved is very slim.

Is the loan attached to your mortgage...... If it is what could possibly be happening is Northern Rock will be securing the debt against your property (which they are entitled to do if it is a together mortgage) however they wont do this until after 3 months missed payments, so I would question if the Insolvency Practice is waiting for this to happen and of so you need to question this immediately.

Typically from first point of contact to having a IVA approved should take 6 - 8 weeks.

Carl

Further more

Jo is correct you need to continue to pay any Court fines or Judgements until the IVA is approved

hi Jmb,

We started the process in September, and we had our IVA approved in December.

We did not have NR but you should have heard somthing from your IP even if it was bad news.

i would start to look around and get advise from other companys.

Melanie Giles is highly recommended.

Good luck.

Please say you have not paid money upfront ? If I were you I would write to the IP giving them fourteen days notice of your intention to go elsewhere - my IVA took six weeks from the initial phone call to the acceptance date and that was with one of the big IVA companies - there must be a hiccup somewhere.

Lulu

No i havnt paid anything yet..they said i make a payment when i sign the proposal.The company i am with is Grant Thornton..i thought they were supposed to be good.Really dont know what to do.

Grant Thornton do have a good reputation in the Industry.

Like Jannot said if you contacted the company in Septemeber i would have expected a Meeting of creditors in December and you really need to question this with them.

Northern Rock have been rejecting proposals for the last twelve months and are unlikely to change there attitude.

Have they given you a reason as to why they are holding it up?

I emailed them telling them how anxious i was about it taking so long..they rang me and all they said was that they needed to have talks with northern rock before sending the proposal out but that was a month ago.I dont really want to go with another company and start it all again.

I would email again if you were told that a month ago and ask for an update.

mrs skint

I can understand your concern about starting again.

But as i said earlier, if NR have 25% then you are unlikely to get the IVA approved anyway and it appears they could be wasting your time.

If you decdided to walk away then your are totally within your right to ask for all your infomration back which you can then forward to another insolvency practise who might be honest with you straight away and tell you if they cannot progress your case.

Let me know how you get on and if you need any more advice.

I think you should ask for your information back and contact someone independantly to review your situation.

During the past 5 months your debts will have been increasing and there may be further action in the pipeline by creditors.

There are many of us here that could look at your situation for you and give you some advice.

Jo Rolland
Debt Alternatives
www.debtalternatives.co.uk

Hi
NR are a tricky creditor and it may be that GT are doing the correct thing in communicating with them prior to the creditors meeting.
Melanie states that NR are still open to IVAs if they meet certain conditions.
I would not change direction at the moment as GT are one of the better IVA providers but simply chase them for a progress report.
It will be interesting to read Melanies view on this.
Regards

Andy Davie
IVA.co.uk Spokesperson and Website Manager

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

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

I am disappointed to see people posting and giving the impression that Northern Rock are rejecting all IVAs.

As an IP in practice, I come across clients with Northern Rock debts all of the time and can assure the forum that Northern Rock do not reject all IVAs. They reject the IVAs that they do not think are viable or are not in the best interests of the bank. Something you would perhaps expect all creditors to do. If GT are taking time to find you a solution, then I would personally stick with them, but they should be able to give you regular progress reports in the meantime.

Let us know the outcome in due course.

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

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

I can only speak from my own personal experience and I would have to say that in the last 12 months Northern rock have rejected the biggest majority of IVA's.

When we have questioned this them on there rejection they have said it does not meet there criteria but will not tell me what there criteria is.

In a recent case i approached NR first who advised me they would consider an acceptance if we could offer 60p in the £.

We put together a proposal offering this dividend and had a realistic prospect of acceptance, however they beet us to and charged the debt against the property so the propsal never made it to creditors meeting as blackhorse then represented majority debt (but that is another story).

Grant thornton are one of the better IVA companies that have a good reputation but you need to get a clear explanation as to what the hold up is and what negotiations are being made on your behalf to ensure your proposal is accepted.

5 months isnt acceptable in any case and your debts will be increasing daily so you need to resolve the issue sooner rather than later.