I don't want to lose my home updated

[Andyf]

I elected to go down the IVA route with 'debtspecialists'. they've advised that my proposal has been rejected by Northern Rock who are also my mortgage providers. the proposal was a monthly payment of £656 on a debt of
MBNA 29000
B/card 3200
M/Stanley 7000
Halifax 1280
Barclays 12600
N Rock 26810

The latest suggestion is to go down the DMP route at the same level of payment until either NR change their policy or the SIVA comes in. Can someone please let me know if this plan makes sense - I'm against going the BR route as I don't want to lose my home.

I was also asked for the first payment up front - which I paid - even though no-one had agreed to the IVA. I now appreciate this was probably the wrong decision - any advice greatly appreciated.

Thanks

[Adam Davies]

Hi
how much equity have you in your house ?

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

[MelanieGiles]

This is poor advice, as you will not fit the criteria for a SIVA as your debts are more than £75,000. What type of loan do you have with Northern Rock - is it a "together" mortgage or an ordinary secured loan?

You will need to beware of creditors proceeding with Charging Orders whilst you make your mind up, as these seem to be getting more popular.

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

[Andyf]

It's a together mortgage, and there's probably around 25k equity.

Melanie, what alternative route would you suggest?

Thanks

[MelanieGiles]

Are your IP's trying to renegotiate with Northern Rock during the 14 day adjournment period which is allowed post-creditors meeting? Are they trying to specifically find out why the IVA was rejected?

I would personally try and improve the offer to Northern Rock, perhaps by extending the IVA terms or increasing the equity you are prepared to release at the end of the term. If this fails, then DMP or bankruptcy are your only option.

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

[MelanieGiles]

And you could also explore the possibility of an equity release now, to pay off a proportional lump to each creditor which would bring them below the £75k SIVA limit.

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

[Andyf]

Thanks Melanie

I don't know what the IP is doing to be honest, i was just told (by debt specialists - I've never spoken to the IP myself) that NR had rejected and that I should follow the DMP route.

I get the feeling from writing this that I haven't been to clever im my dealings with them??

I said yes to the DMP assuming the IP would have tried all avenues, and in desparation to stop the creditors ringing constantly

I have to admit as well, I don't know what terms they're going to negotiate for the DMP - should I at this stage, or should I be leaving it up to them to negotiate - based upon the disposable income we've worked out?

Thanks again!!

[MelanieGiles]

Andy

Don't forget that you are the one in charge here not your IP. It is up to you to instruct the DMP company and advise them what you can afford to pay. I am concerned that you appear to have had little (if any) dealings with the people who are supposed to be representing you.

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