Main creditor rejected proposal - what next?

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Meech
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by Meech » Tue May 08, 2018 10:12 am
Just heard that all other creditors accepted the proposal from my husband and I except for one - the main one.

I have been advised by the IP that in reality they will only consider an addition £50 - £100 being paid each month, with the probability being £100. I fear this means we will have no life at all, but really do not know what to do. Extending to 72 months was also mentioned but I do not know if this was as well as the additional payments or instead of.

Has anyone else been in this position - what did you do?

Many thanks to anyone who can take the time to give me some advice.
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kallis3
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by kallis3 » Tue May 08, 2018 10:40 am
Hi,

Sorry to hear that. I suggest you speak to your IP and clarify whether or not it's just the extension.

Only you can make the decision as to what to do. If you don't go ahead, what are you going to do? I take it bankruptcy isn't an option?
Meech
Posts: 13
by Meech » Tue May 08, 2018 10:46 am
Kalis the problem is our mortgage is interest only, due to finish around the time of the IVA, no equity to speak of..and I also worry about our age - I’m 45 and my husband is 50.

Just feel as though great assurances were made at the start about this being the best course of action for us to address our debt..and now seems to be going pear shaped..I just want to pay back as much as we can.

As you say though, only we can make that decision. I just wondered if anyone else had a similar story to share. Don’t they say misery loves company!
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kallis3
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by kallis3 » Tue May 08, 2018 10:53 am
Is your main creditor NRAM by any chance?

You could always try a DMP temporarily and then go for another IVA with a different company. Which company did you go with?
Meech
Posts: 13
by Meech » Tue May 08, 2018 10:57 am
No, unfortunately it’s an unsecured loan with Shawbrook..one of many bad mistakes I wish I could change...
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kallis3
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by kallis3 » Tue May 08, 2018 10:58 am
Speak to your IP asap and be guided by their advice.
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Lisa Thomas
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by Lisa Thomas » Tue May 08, 2018 2:09 pm
You shouldn't accept a modification if you won't be able to afford the payments - that's just going to end in failure as you won't be able to meet the payments.

How have they calculated that you can afford the extra £50-£100?
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Foggy
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by Foggy » Tue May 08, 2018 5:44 pm
I agree with Lisa that an unaffordable payment is not the answer, but maybe knuckle down to an extension ... hard slog but with a (new) end in view. Of course this all depends on the full picture and figures involved.
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