www.iva.co.uk

has any one else found that Northern Rock are rejecting IVA's regardless of circumstances? All the rejectons last month were all Northern Rock all different circumstances and levels of debt, all decent dividends and when we tried to ascertain why just hit a brick wall. Cant get to speak to desicion makers either. I guess they have blocked all IVA's and that's how they are reducing their bad debts figures. Anyone any other thoughts or do you work fr NR and know what's going on.

http://companyinfo.northernrock.co.uk/d ... tement.pdf

There trading statement doesn't indicate bad debt is any higher than expected.

Only comment I picked up was they are launching near-prime / subprime products through a third party perhaps they will look to move problem cases on in future.

I think Melanie was looking to get an update from them.......

Hi kingsgateinsolvency,

We did have an accept with Northern Rock as one of the creditors last month (early March) but dont seem to have any going through at the moment that have NR as a creditor (which may be a good thing!).

Kind Regards

Nicola

Finebridge Ltd
22 Laud Street, Croydon, CR0 1SU
0800 180 4212
www.finebridge.co.uk

I have not had any rejections from Northern Rock this month - I generally find them quite accomodating so long as the debtor's proposal represents the very best offer. Maybe I am just lucky - and I will probably eat my words shortly!

I spoke to them recently and was advised that they like to see at least half of the debt being repaid, however they will accept lower offers so long as they are the best offer which could be made.

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

Thanks to both replies, looking at sub prime lending would most cetainly be a solid reason for them rejecting all srtuggling borrowers. It certainly flags an opportunity up for THEM, it reduces their bad debt or arrears and retains business.For the CONSUMER not too good, most of our clients had high LTV's or negative equity, another ploy of NR.

"I spoke to them recently and was advised that they like to see at least half of the debt being repaid, however they will accept lower offers so long as they are the best offer which could be made."

Our proposals have all been good dividends with the possibilty of equity release in year 4. In fact one case we received two proofs of debt, one just below the voting level and no vote and then guess what? the second was increased and gave them the voting majority against, just. It hardly supports the fair and feasible rule. Another case we excluded the unsecured loan and ALL other creditors voted for. they objected and voted against, even though the client is repaying the mortgage and the unsecured loan in full.

One of the problems is that Northern Rock know that most people will not opt for bankruptcy if their IVa is rejected so they just keep them on the informal debt repayment treadmill.
If bankruptcy automatically followed an IVA rejection then I,d guarantee that most IVAs would be accepted.
One day maybe ?
regards

Andy Davie
IVA.co.uk Spokesperson and site manager
(aka Neverending)

Please check out my blog: http://andydavie.blogs.iva.co.uk

View my profile here:
http://www.iva.co.uk/andy_davie_profile.asp

To kinsgateinsolvency

I am suprised you would put an IVA forward effectively preferring an unsecured creditor. I do hope that as a profession we do not encourage using those sort of tactics as this will see a general bun fight for all with even more rejections.

I personally am pleased to see that Northern Rock insisted on being included in the IVA, as at least this maintains the traditional and legal principle of pari passu distribution.



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

I am suprised you would put an IVA forward effectively preferring an unsecured creditor. I do hope that as a profession we do not encourage using those sort of tactics as this will see a general bun fight for all with even more rejections.

I personally am pleased to see that Northern Rock insisted on being included in the IVA, as at least this maintains the traditional and legal principle of pari passu distribution.

1st
Northern Rock didnt insist they were included.
2nd
There was extenuating circumstances as only one partner on the mortgage was in the IVA so the loan was jointly and severly involved.
3rd
The issue is: no mater what NR dont vote for an IVA and if you have inside conections it would be good to know who to talk to as so far NR have totally stone walled EVERY case.



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
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