I am just starting the iva process, I have debts of around £80,000 to various creditors, bank loans, credit cards & store cards. I just dont know how i've copped these last few months, but been reading this forum for the last couple of weeks and you lot have helped a great deal. Answering some of the worries i had about iva's etc. so a big thankyou to you all[:D]
I will keep you posted through my process, as i know it's reasurring that there are other people out there having the same difficulties and money troubles as you are.
You may have a little bit of an uphill struggle, I,m afraid ,as you have the infamous NR accounting for possibly 25% of your overall debt.You will need to offer a 40p plus dividend and your equity will almost certainly have to be paid in the fourth year.
I do not want to disappoint you but just want you to keep an open mind.NR still accept some IVAs so you will always have a chance and I guess that your IP will not propose it if they hought that it was a non starter.
Have you appointed an IP yet ?
What would you do about the equity in my house, would you try and secure some debt on it, sell it and rent it back from a firm if an iva isn't going to work for me. i have an IP at the minute who is working out figures etc at the min to whether an iva would work for me. So not sure if i'l have to go through the bankrupacy route, but really dont want to loose my house.
You need to be careful with regard to disposing of your home whilst insolvent.Companies that buy your property and rent it back usually offer upto 80% of your house value.
Do you have a relative who could raise the 15k and buy your equity from the OR ??
Just wait and see what your IP comes up with because bankruptcy will return next to nothing to your creditors compared to an IVA.You never know,your creditors may see sense and accept your IVA and a far better return
So far as I am concerned everyone still deserves the chance to put their proposals in front of Northern Rock, who will then decide whether to accept or reject. But as you have a one in ten change of acceptance, based upon the amount of money you have already paid coupled with the remaining balance outstanding, it is fair to suggest that you do not build up your hopes too much.
Regards, Melanie Giles, Insolvency Practitioner for over 20 years.