BR vs NR......quick advice req

rogers1892

owe NR just under 30K, unsecured loan, in joint names with my ex. I was paying £330 appx per month, with only £70 coming off the balance. The loan is over another 23 yrs as was originally unsecured pary of together mortgage. I wrote to them to advise them of them of my financial hardship, I offered them £100.00 per month, and asked to freeze interest or any other charges.

I was amazed to hear back from them to say they would agree to this for 6 months, then we can review! If it wasn't for their accpetance my ex and I would be declaring BR.

I'm concerned about what may happen in 5 months time when this is reviewed. My local CAB have already advised us that as we have no assets at all, and the loan is unsecured, that we should go BR now. IVA not an alternative and even with budget plans, we continue to sink further.

My question is this though. Can I contact NR at the end of the reduced payments and say that we have been advised to declare BR, but make them a much reduced offer to settle the debt and avoid the BR? Am I allowed to do that?? We reckon we can scrape together about 1/6 of the balance, and I know they can just say No! But is this something that people do?????

Thanks for any help/advice!

If I can just add - Northern Rock took the full payment this month instead of the £100.00 agreed. Obviously the additional hadn't been budgeted for, and we are well and truly in the clarts. On the phone to them now! Thanks NR!

tigerfeet2006

You can do this if you want to and they may accept but if they don't then you could use the money to go BR

debt_doctor

Hi,
From your post it is unclear whether you still have the secured loan part, ie are you or your partner still a homeowner ?

If you are then in my experience, NR move very fast to the county court at a mere wiff of BR to try to obtain judgement and then a charging order if you default, thereby excluding their loan from any BR.

Of course if you no longer hold property then this is not an issue.

Good luck with your offer !
DD

peachyprice

rogers1892 wrote: »

If I can just add - Northern Rock took the full payment this month instead of the £100.00 agreed. Obviously the additional hadn't been budgeted for, and we are well and truly in the clarts. On the phone to them now! Thanks NR!

Phone your bank and tell then to reverse the payment. NR have broken the terms of the direct debit guarantee and you are entitled to your money back.

The Direct Debit Guarantee

• If the amounts to be paid or the payment dates change, the organisation collecting the payment will notify you normally 10 working days in advance of your account being debited or as otherwise agreed
• If an error is made by the organisation or your bank or building society, you are guaranteed a full and immediate refund from your branch of the amount paid
• You can cancel a Direct Debit at any time by contacting your bank or building society. We also recommend you notify the organisation concerned.

rogers1892

Sorry guys.....the secured loan was cleared when we sold the house, it's only the unsecured left!

NR are calling me back re the overpayment!

BR is going to be the last option for us, we don't want it, and thankfully so far N.Rock have been brilliant. (Excpet for todays indiscretion!) BR seems to be the only advice CAB are giving us, as we have no assets at all now, no car/property/jewels in the safe.......