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kitty30

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Post by kitty30 » Tue Jun 29, 2010 5:25 pm
Hi,
Wondering if someone can give me reassurance here. I have 56k unsecured debts and 25k is with a northern rock together mortgage. I have had an initial assessment which is coming back at a payment of £340 which I am told is 25% return. I am told that this is the minimum NR will accept. Given this, what is the likelihood they'll accept? Most people have bad things to say about NR and their criteria but no one seems to say exactly what it is.

Can anyone advise?

Thanks
 
 

Shining

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Post by Shining » Tue Jun 29, 2010 5:35 pm
Hi Kitty and welcome to the forum.

I have no debt with Northern Rock and so cannot comment personally but will keep this bumped up for a professional opinion.
IVA final payment left the bank on the 26th January 2013...looking forward to a debt free future.
 
 

kallis3

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Post by kallis3 » Tue Jun 29, 2010 5:39 pm
Welcome from me as well.

I don't know whether anyone knows what the criteria is, I think it varies from person to person.

What company have you approached?
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley.
http://kallis3.blogs.iva.co.uk
 
 

Cath

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Post by Cath » Tue Jun 29, 2010 9:25 pm
I was originally told NR would only accept a 33p dividend which turned out to be a load of rubbish when I approached a different firm for advice. So glad I found this forum before it was too late.
7 year IVA completed in December 2016 - there is light at the end of that tunnel
 
 

Cath

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Post by Cath » Tue Jun 29, 2010 9:27 pm
I do know that they will expect a 6 year IVA if you have more than 5 years left on the term of the loan, if that's any help.
7 year IVA completed in December 2016 - there is light at the end of that tunnel
 
 

kitty30

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Post by kitty30 » Tue Jun 29, 2010 9:42 pm
I don't understand why I would be told 25% is ok if 33% is needed? Why would a company say one thing if not true? Surely they do not benefit if it gets rejected? There are no fees if it does.
 
 

plasticdaft

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Post by plasticdaft » Tue Jun 29, 2010 10:28 pm
What company did you approach? Its not in an IP's best interest to propose something that wont get approved,but check how successful your chosen firm is in dealing with NR,some companies seem to be better than others at drumming up support for IVA's.
Check to make sure the company you have approached doesnt want any fees up front and make sure that if they do want a month or 2 worth of IVA payments that you know what happens to this money if your IVA gets refused.

Dont just talk to one IVA firm,try 2 or 3 and see what advice you get.

Paul
Discharged today the 8th feb 2012. View is much brighter now.
Continuing to rebuild our credit worthiness.
 
 

MelanieGiles

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Post by MelanieGiles » Wed Jun 30, 2010 1:08 am
It is not correct to have been told that Northern Rock will only accept dividends of a certain level. Who has given you this advice?
Regards, Melanie Giles, Insolvency Practitioner
 
 

kitty30

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Post by kitty30 » Wed Jun 30, 2010 6:07 am
I'm with DFD. Perhaps I have misunderstood somewhere along the line. But someone put on here it was 33p in £1, DFD said needs to be 25%.....others say NR won't do? Many of the experts say it must meet the criteria. I just don't know what the criteria is.
Also it appears that part of my car loan is HP then a smaller part is unsecured. Can the car loan company terminate the HP side if an IVA is agreed and I would be left without a car and no way of getting finance?

Thanks
 
 

Michael Peoples

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Post by Michael Peoples » Wed Jun 30, 2010 9:27 am
N Rock do not have a set minimum dividend requirement although they do have other criteria for accepting IVAs. Ironically, this means they are more inclined to reject high dividends as they believe in circumstances like this debt management may be more suitable.

I do not understand about the car loan as I have only ever seen agreements that are secured or unsecured. If it is secured it must be repaid and an allowance will be made otherwise the vehicle will be repossessed. Some HP companies do terminate the agreements of those in IVAs but your IP should be able to help you.
Michael Peoples | McCambridge Duffy Insolvency Practitioners
http://www.mccambridgeduffy.com
If you would like to talk to me about proposing an IVA or have any questions at all please visit www.mccambridgeduffy.com
 
 

kitty30

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Post by kitty30 » Wed Jun 30, 2010 7:07 pm
Hi,
I have spoken to them and they assured me that the car finance company cannot revoke my agreement as long as I pay the secured part - which I have every intention of doing.
Michael peoples - can you elaborate on the NR criteria?

Thanks x
 
 

Michael Peoples

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Post by Michael Peoples » Thu Jul 01, 2010 9:35 am
Kitty.
The bulk of N Rock debts are over long periods of time and the Together mortgages run the same period as the mortgage. There are also other N Rock loans which can be 10 plus years long so N Rock normally ask for the IVA to be extended to a sixth year. They also have the equity modification so potentially your IVA could run for seven years.

The other conditions N Rock look at is whether or not the debts could be repaid in a reasonable timeframe via a debt management plan. They will look at the cases and if they feel debt management is better for creditors than an IVA they will reject. This means that high dividends are more likely to be rejected since the amount of money coming into the pot is close to or equals the total debts. Low dividend IVAs are more likely to be accepted because debt management does not suit and there are no other alternatives. I have had N Rock acceptances for dividends in the low teens as the only other option was bankruptcy.
Michael Peoples | McCambridge Duffy Insolvency Practitioners
http://www.mccambridgeduffy.com
If you would like to talk to me about proposing an IVA or have any questions at all please visit www.mccambridgeduffy.com
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