worried again!

[argento]

Hi, creditors meeting coming up in a couple of weeks. I've been reading the posts avidly since I started my IVA proposal and wasn't going to post another question as most of my queries had been answered, but I read another post today - someone asking if an IVA would be suitable for them as NR was their main creditor. Again the replies came back about NR only accepting about 1 in 10 IVA's.

NR are my main creditor. I owe them 16k. My total debts are 58k (50k in my name and about eight in my wife's who was added to the IVA proposal at a later stage for us to offer a better repayment).
We are offering 72 monthly payments at £350 per month which gives a return of 26p in the £ as opposed to 2p in the £ with BR. We may also be able to offer more with equity release at a later stage.

If our IVA is rejected and I am forced to go BR (we have already assumed a DMP will be no good as even if intrest was frozen it would take us about 15 years to repay everything)I am prety sure that I would be able to get a family member to buy out my share of our homes equity (about 7.5k) and put their name on the mortgage for us to keep our house. If my creditors knew about this would they be more willing to accept the IVA as they would know for a fact that they would get more? Also, if they accept the IVA and it fails for some reason later, I'm assuming that both me and my wife would have to claim BR entitling my creditors to all of our equity. Would this play any part in their decision to accept said IVA?

One more thing. NR have informed me that if I miss three months of repayments they will automaticall move to secure my loan against our property. Am I right in thinking that if I don't go three months behind then they can't do this or can they do this at anytime if they think the debtor is having repaayment difficulties?
Please, any advice anyone?

[mikebdomain]

Is your mortgage also with NR, do you have together product? If so, your unsecured loan agreement states that the loan will be secured in the event that the loan defaults (missed three payments) as standard.

If you do not miss any payments they can not and have no reason to secure the debt.

FREE ADVICE IS THE BEST ADVICE

Mortgage Broker
Specialising in adverse credit.

See feedback and testimonials at: http://www.leybridge.com/testimonial.php

[argento]

hi Mike, thanks for the reply.
My mortgage is with NR but is a standard fixed rate mortgage in joint names with my wife. The loan is a personal loan that I took out with NR not long after starting my mortgage with them (I consolodated a Lloyds TSB loan so that all my debt was with... ahem, one company!) The loan is in my name only.
p.s
I owe NR 16k on the loan because of intrest. My current settlement figure is just under 12k. If the IVA was based on the settlement figure I wouldn't be so concerned because NR would then not have a 25% majority vote.
Pity, uh?

[Adam Davies]

Hi
However if you apply for an IVA you are declaring that you are insolvent and they may have a clause that states that they can secure any unsecured debt without waiting for three months arrears to happen.If they agree to your IVA then obviously they can,t do this.
If they decline your IVA then bankruprcy may be a good move,given your circumstances
Regards

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

[argento]

cheers Andy,
If i did go BR and my wife went back to paying her debts (which she can do) what would I be expected to repay?
Obviously I would release my half of the equity with the help of my parents but what as for monthly contributions? Would they take into account that I would still be living in the same house with the same commitments and therefore a lot of my money will be tied up the same way?

[mikebdomain]

Check out http://www.insolvency.gov.uk/guidancele ... e/home.htm

I am sure that will answer ALL your questions regarding bankruptcy and your home

FREE ADVICE IS THE BEST ADVICE

Mortgage Broker
Specialising in adverse credit.

See feedback and testimonials at: http://www.leybridge.com/testimonial.php

[mikebdomain]

And
http://www.insolvency.gov.uk/guidancele ... ipoipa.htm

which will explain monthly payments

FREE ADVICE IS THE BEST ADVICE

Mortgage Broker
Specialising in adverse credit.

See feedback and testimonials at: http://www.leybridge.com/testimonial.php

[Adam Davies]

Hi
The allowances in bankruptcy are less harsh than in an IVA.The maximum that you can pay over the three years is 70% of your disposible income,compared to 100% in an IVA.Also in bankruptcy tax credits/child benefit are not classed as income,whereas in an IVA they are.
Bizarre !!

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

[argento]

Andy and Mike,
thanks lads. I'll check out them sites now.

[mikebdomain]

I didn't know that Andy - that is bizarre..

FREE ADVICE IS THE BEST ADVICE

Mortgage Broker
Specialising in adverse credit.

See feedback and testimonials at: http://www.leybridge.com/testimonial.php

[Skippy]

My allowances are much more generous in BR than in my IVA - I paid £459 into the IVA and at the moment I pay £186 into my IPA.

It's also more flexible - if I have a change of circumstances I can ask the OR to reassess my payments and it doesn't have to be put before the creditors.

Yesterday is history, tomorrow is a mystery, today is the present - a gift to make the most of.

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