what will my next step be i am so distraught

[j_d]

i have just had a IVA rejected yesterday the only creditor that voted against was Northern Rock. Waht will my next step be i am so distraught my relationship is on the brink because of all of this and i have 5 month old baby. i just dont know which way to turn now.

[MelanieGiles]

Hi jd

Can you explain what reasons Northern Rock gave for not accepting your arrangement? Was the loan with them very recent? What dividend were you offering? Do you own a house with equity?

What IP firm are you using, and what advice have they given 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

[j_d]

Hi Melanie
been trying to get on the site all day and finally managed it.
Thankyou for your reply.

The Creditors meeting was on the 17th April myself and my partner have been going through this now since january 07 and was finally starting to see a light at the end of the tunnel. We had been told that Northern Rock may cause us a problem but was hoping that finally we would have a stroke of good luck.

No the IVA was rejected solely by Northern Rock, we were told by our IP that they did not give any reason at all just a straight out vote against.

Northern Rock being my partners main creditor they held the majority vote. My Iva was accepted 100% but then withdrawn and rejected due to Northern Rock voting against and so rejecting his.

We are in absolute turmoil at the moment, my partner was speaking of unthinkable things last night which would not help the situation at all due to me being left then a single parent.

I just do not know which way to turn. |Any advice would be helpfull and appreciated.

[j_d]

Sorry Melanie
i did not answer your questions very well did i.

As I said NR did not give a reason just a no.

The debt to them was 21000 but due to interest, insurance etc being added rose to 37000 when figures were requested. We were able to offer £700 pounds a month but that was really stretching our limits.

We are 1 month behind with payments.

We do have a property which is worth at present around 135000 our mortgage is for 109000

Wilson Phillips is our IP and have been brilliant. They are now advising that we go a DMP for 6 months.

It just all seems so neverending


julie

[jamesfalla]

Hi jd

To give you the right advice at this stage, it is vital to know a little more above your circumstances. It may be possible to do a Debt Management plan or better to consider Bankruptcy (this sounds terrible but it may actually be a very real and sensible option for you.

Most importantly, do you and your partner own a house? If you can let us know then we will be able to advise you further

James Falla

Expert in IVA, Bankruptcy and informal Debt Management solutions for over 10 years.

For more information visit www.jamesfalla.com and visit my blog at: http://jamesfalla.blogs.iva.co.uk

[j_d]

We do have a house and just really do not want BR if at all possible due to me having a long and sticky divorce in which i fought to keep my house and finally through the financial and emotional support of my parents managed to save it.

The problem we are in has been caused by my partner getting to deep and then robbing peter to pay paul my debt without this was managable and i did not have a problem but as a couple a problem is shared.

[jamesfalla]

Thanks for the extra info JD. Given that you have c£20000 of equity in your property you definitly want to avoid bankruptcy. If you went down this route, there would be a very real risk of loosing the house so the creditors could get their hands on the equity.

Given this you really should be considering a Debt Management Plan. You say £700/mth is stretching things so if you were to pay £600/mth this is going to give you some breathing space.

Hopefully after having completed 6 months of a DMP including Northern Rock, they will be willing to reconsider your IVA proposal

James Falla

Expert in IVA, Bankruptcy and informal Debt Management solutions for over 10 years.

For more information visit www.jamesfalla.com and visit my blog at: http://jamesfalla.blogs.iva.co.uk

[j_d]

Hi James
Thankyou so much for replying.

The problem here is that i am currently on Maternity Leave and we can afford higher payments once i return to work in september until then we are really struggling. The Iva was being set up now to begin in Sept with payments being 700, starting then. If we were to start a DMP now which really does seem like the best option would they be able to arange for smaller payments between now and sept.

Julie

[MelanieGiles]

I have spoken to Northern Rock's voting representatives generally today, and whilst they are not giving much away, I can confirm that if the unsecured element of a Northern Rock together mortgage is less than 12 months old, this will likely meet with rejection.

They are still accepting genuine cases, without any dividend minimum, however they feel that when people have borrowed money so soon before entering into an IVA, they ought to have known that they were in difficulties when they applied.

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

[j_d]

Sorry Melanie am i being dim but did not understand your reply to me.

We do not have a Mortgage with NR it is a loan in my partners name. It was taken out about 2 years ago when he was trying to solve his own problems thinking he could get himself out of it all without having to worry me.

This obviously got worse over the following months and he ended up with more credit card debt where he robbed peter to pay paul.

NR did apparently say to our IP that they would prefer us to go through thier debt management which we have now found out means taking a new loan out to settle the old one 21000 this would then be secured on our property.

[freelili]

Hello jd

I just wanted to say that its Ok and we all have done what your husband has done, its really difficult to believe that your debt problem is as bad as it is and I think most of us can identify with robbing peter (and other disciples) to pay paul and trying to consolidate. He is really feeling bad right now and having these bad thoughts is of concern. I am sure that given time you will be able to work out a solution to your problems, please can you pass on our support to hubby as I feel for him and you right now. The most important thing is that you have each other and your baby. I really hope this works out for you, life is so much more important than money. I am not an expert in financial matters just another person trying to deal with debts,

Good luck and best wishes

LILY

I asked God for a solution and have to live with his reply.

[j_d]

Hi Lily
Thankyou so very very much for your kind words and support.
I know he is feeling really bad at the moment and i am not blameless i do have debt but debt scares me so i have been a little more careful, i know his feelings at the moment areterrible and very real he really sees that if he was not here things would get sorted for me and our children, but they wouldn't would they they would only become worse.

I also think that the embarrassment of getting into this situation is bad as you dont want to admit to people what a mess you have made.

He feels that he has let me down terribly and i musy admit that at times through the last few months i have done very little to eliviate these feelings for him. In fact i feel that i have perhaps made them worse.

He says that every day for the last 5 months he has expected me to be gone with the kids everytime he returns from work.

Thankyou again Lily it is so calming to know there are people out there that understand.

[Skippy]

Hi JD, just to echo Lily's post, please let your husband know that we are thinking of him, and that there are other people in the same situation who understand. I was 65k in debt when I went into my IVA, and I am now bankrupt as the IVA failed , having nothing to show for my debts. I was robbing Peter to pay Paul, using my credit cards to live as I'd used my salary to pay the minimum balances on my credit cards, as well as my 2 consolidation loans. It's so easy to do, so please tell your partner not to feel bad. Give him a hug, and please don't let this break your relationship, you will get through this together x

Onwards and upwards!!!

View my blog at http://skippy13.blogs.iva.co.uk/

[j_d]

Hi Skippy thanks for your kind words.

But they scare me more than ever I really do not want to go BR and you say that you did cos your IVA failed. So sorry about this.

WE had our IVA refused as you have most prob read and are now looking towards DMP I am just so scared that we will end up BR.

NR was the only creditor to say no my creditors voted 100% yes and my partners all did but NR made up 53% so thier vote was majority.

It is all so neverending.

Are you ok now. Think we do need to hear some positives. As at the moment we are just seeming to fall deeper and deeper into despair trying so hard not to be woe is me but it is hard, espeicially as partner is having scary thoughts about where he should be.

Julie

[tracy.h]

Hi JD,sorry you are having so much turmoil at the moment,and that your partner feels so low,and the same as lily and skippy am thinking of you at this low time in your lifes,ive been so far down i no where hes coming from,but you have to look at the positives you have a child and each other,that has to be your priority,everything else will sort itself out one way or another,this forum has helped me to stay sane.
I really do hope you can work things out,and we are all here if you need support.Goodluck keep posting