IVA, Norther Rock Together Mortgage!!

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debt attack
Posts: 95
by debt attack » Wed Jan 27, 2010 11:02 pm

I would really appreciate some help!!

I enquired today about a possible IVA...

I mainly have credit cards and one loan which I have informed the IVA company about.

All debts are in my name.

The only thing I've not yet discussed is the fact that I have a Northern Rock Mortgage (£105k) plus a Northern Rock unsecured loan as part of the Together plan (£25k). My house is valued around £105k)

The mortgage and loan is in joint names with my father. He doesn't and never has contributed to the repayment of this...he was purely a 2nd applicant on the mortgage so that I could secure the credit I needed.

Would the Unsecured loan element have to be included in my IVA application?

Would my father have to been involved in the IVA?

Whats N Rock's responses ususally like to including this loan in IVA's? Has anyone had any success with this?

I'm confused, worried and stressing.....any help/advice greatly appreciated??


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Posts: 9503
by Julie » Thu Jan 28, 2010 8:16 am
Hi there and welcome to the forum,

I know there have been other posters who have had the together plan, so I'm sure one of the professionals will be along soon to answer your question.

How much debt do you have and do you know approximately what your disposable income is?


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Forum Expert
Posts: 72258
by kallis3 » Thu Jan 28, 2010 8:46 am
Hi, and welcome from me as well.

Not certain, but I think that the unsecured part will be included in the IVA. If that is the case, then your father will be chased by NR for the full amount, as you are both jointly and severally liable for those joint debts.

However, not 100% on that, and hopefully a professional will be along later to advise.


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Michael Peoples
Industry Expert
Posts: 15189
by Michael Peoples » Thu Jan 28, 2010 9:57 am
Jan is totally correct. The fact that your father signed the loan agreement means he is liable for it. If you enter an IVA or bankruptcy N Rock will pursue your father for the full amount so he will have to keep making the contractual payments. He should be advised that you are in financial trouble as he should consider taking some advice himself.

You will not be able to keep the N Rock debt out of the IVA as your IP company will ask for a copy of your mortgage statement which will show the debt.


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Adam Davies
Posts: 14596
by Adam Davies » Thu Jan 28, 2010 4:12 pm
Have a chat with several experts/companies as there may be another solution that suits you and your father better


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Industry Expert
Posts: 47612
by MelanieGiles » Thu Jan 28, 2010 9:59 pm
This highlights the pitfalls of providing guarantors for loans, or like ndebt attack actually getting a family member to accept joint and several liability for the debt.

I would follow Andy's advice as see whether you could offer a DMP to creditors where you pay the contractual amount to the together loan (which will be a lot lower than payments to credit cards) and then make an offer of pro-rata payments to the others.

This is not strictly in accordance with the principle of pari-passu distribution, but so long as all of the creditors accept it should cause you little bother.
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