my main creditor is NR

[fudge34]

Hi
Thanks for all your support- I guess what I need to ascertain is this - if NR do not accept my IVA which my IP has been quite honest about saying that they reject 9 / 10 times - even though my dividend is quite high 56p in the pound then I will have to look at BR. I don't feel that a DMP is the way forward, with my current debts its going to be another 15 years before I am clear of debt and I am already suffering from a tarnished credit record due to the fact I am taking out this IVA and have defaulted on NR they won't accept my nominal payments. my Husband is being generally supportive but obviously he is worried about them taking the share of his equity (the IVA is in my name only) which I have assured him this won't happen. I am thinking even though in 4 years time my house will of course be a higher value even with the costs, my half of the equity won't actually be that much it currently stands at 2 grand when all is said and done. The only reason I am really resisting BR is that I work in PR and our job is to scan the papers so my reputation may be tarnished and the worse credit rating than I would have with an IVA - I hope that NR do take a more responsible credit lending stance and or at least change their policy re NR I may you don't know be one of the lucky ones who they approve (trying to be positive)

[atom]

Hi Fudge 34, what you have to realise is that your creditors will not view the debt as yours alone. Especially if you are married they will assume the debt is joint as the debts will usually have been accrued on things like cars, holidays etc etc. For that reason they won't view the IVA as just yours and won't care less about the equity being split in 2 - it's a jointly owned property and N Rock aren't bothered about the intricacies of who owns what share. Speak to your IP as it may be better to go down the IVA route; get it rejected by N Rock (who will then go for a charge on your house)and re submit the IVA with the other creditors only (assuming you are both ok with having no equity for a few years)

[fudge34]

Hi
Thanks for this - its very handy to know - my IP didn't actually explain this I would have never even thought about taking out an IVA if I thought it would affect my husband - on all the sheets it details my name and all of my debts what they have gone on etc so I am really shocked that this will affect my husband equity in teh house - I asked them twice about this (as obviously my husband wants to keep his share of the equity) and they said oh no its just your half - will get onto them straight away about this as I do not want him affected the debts are in my name etc only thanks again

[MelanieGiles]

I have to disagree with this point on equity. In my experience, creditors will rarely assume they have any right over a partner's share of the equity. If Northern Rock do get a charge over your property, this is against your share only.

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

[atom]

Sorry but in my experience I have to disagree. All N Rock will do is reject your VA and put a charge on the property so you've got no equity left anyway. Your husband's credit history isn't affected by the VA. What he's doing is losing his equity share in the short term to help clear debts which the creditors will view as joint anyway. We have clients where the partner will give up their share to help out the spouse and get the debts sorted which, after all, is what you want to achieve.

[fudge34]

Hi
Thanks for all of this - just had a good chat with Andrew from Accuma who has pretty much said what we have all been thinking - NR are likely to reject the proposal and put a charging order on the property - I am now turning towards the route of BR to put an end to this mess!

[fudge34]

Hi
Thanks have so many questions about being made BR not sure where to start!

Hi Fudge34,
I can see you have had great advice so far - If you wish to have further information on Bankruptcys check out the blogs for myself, skippy13 and scaredkez for info.
There is also a debt evening tomorrow night which i will be attending.
Hope this helps
Z
x

Zoe
x
Keep your chin up - everything happens for a reason!
View my blog http://zoes.blogs.iva.co.uk/

[Oliver]

Have you read the many blogs from people on this site about bankruptcy, as they are a great source of information.

Or feel free to post your questions and we will do our best to answer them.



Best Regards
Oliver

Thomas Charles and Co Ltd.
Experts in personal debt solutions.
Read customer feedback at: www.thomascharles.com/about_us.asp

[zoe]

Fire away we are all happy to help!

Zoe
x
Keep your chin up - everything happens for a reason!
View my blog http://zoes.blogs.iva.co.uk/

[fudge34]

Well I guess my main concern is my house. I have a joint mortgage with my husband but we have very little equity in our house - brought it one year ago. I have been advised to think about getting my husband to buy out my half of the equity that has been accrued some 2 or 3 grands worth obviously signing over the house to him. Which we need to take out a loan for as we don't have two or three grand lying around! The main thing that worries me is the house and our assets. We don't have alot of fancy things, we have a car that is an old banger and brought under my husband's name as I don't drive and we have the usual TV, freezer etc. I want to make sure that these are protected. I am also concerned about my employers finding out and whether my future promotion prospects might be hampered. I guess having throught I would do an IVA and now thinking about BR has turned things around on their head! Also not clear what monthly payments I will have to pay off my IP suggest 6p in the pound (as compared to 56p in the pound with an IVA) which means my monthly payments will be around 200 pound - what happens to the rest of my income? obviously I was prepared to pay around 600 so do I get to keep the rest of it! sorry am rambling

Fire away we are all happy to help!

Zoe
x
Keep your chin up - everything happens for a reason!
View my blog http://zoes.blogs.iva.co.uk/

[Oliver]

Your Husband will potentially be able to buy your share of the house so that you can keep the property.

If your car is worth less than £1500 this will not be of interest to the court.

All your Partner's property will be protected and the court will be unconcerned with any household items or white goods that you own that are not of unreasonable value.

In bankruptcy the OR will often be much more lenient with your budgeting requirements which will often mean that you have more money in the month allocated to you.




Best Regards
Oliver

Thomas Charles and Co Ltd.
Experts in personal debt solutions.
Read customer feedback at: www.thomascharles.com/about_us.asp

[zoe]

No Not at all
Firstly as long as you dont have sofas from Harrods or rugs from selfridges your items will be ok.
In terms of equity your husband will need to make an offer to the official receiver for this. you normally get a year for monies to be accrued, therefore what you save you could put aside?!
In terms of payment orders the officialt receiver are more generous on allowable expenditure than IVAs and you would have to pay over a percentage of your disposable income to them and you keep the rest. Skippys blog contains a scale for you to look at
Hope this helps
Z
x

Zoe
x
Keep your chin up - everything happens for a reason!
View my blog http://zoes.blogs.iva.co.uk/

[fudge34]

Which makes me feel as if this is an easier solution than an IVA and I wonder why more people don't do it! I need to find out for sure before I commit to this that the house is protected - we have a young child and I need to take her wellbeing into consideration adn obviously that of my husband as we brought the house together - I am guessing that I would have to list all my assets just mine and not my husbands? he has a couple of grand in shares that he is saving to pay off the downfall in our mortgage (we are paying interst only at the moment for five years and have been advised by our financial advisor to put 200 pound per month away in shares to match the rest) the stigma of BR is hard to figure out in my mind - I want to lead a professional career but everything i have read about BR says that I will not be able to be put forward for a directorship and this will harm my future job prospects I work in PR so don't handle money etc but if I did say want to become a director in three years then this wouldn't be an option would it? sorry for all the questions!

[zoe]

I fit is just you going bankrupt you advise your assets.
In terms of a professional career you will need to look into your contract. If nothing mentioned there is nothing they can do - I am a government officer!!!!
Z
x

Zoe
x
Keep your chin up - everything happens for a reason!
View my blog http://zoes.blogs.iva.co.uk/

[zoe]

I fit is just you going bankrupt you advise your assets.
In terms of a professional career you will need to look into your contract. If nothing mentioned there is nothing they can do - I am a government officer!!!!
Z
x

Zoe
x
Keep your chin up - everything happens for a reason!
View my blog http://zoes.blogs.iva.co.uk/