northern rock and iva

clasophlia

Hi,

Does anyone know if northern rock are accepting any ivas?

I am £25000 in debt, £20000 of it being a northern rock loan which although we are up to date on, is crippling us fianancially.

We are privately renting now and this loan was from a together mortgage.

We are literally living on £50 a week for everything now and have 2 kids.

I can't believe how stressed and upset all this is making me, it is taking over everything. Please help me.

clasophlia

Can anyone offer me advice? I have heard northern rock dont accept ivas.

Please help

pennypinching_2

I entered into an IVA last May and I had a Northern Rock loan and that went through fine. If my memory serves me right a certain percentage of the companies you owe to have to agree to the IVA so it doesnt matter if they dont agree it has to be a percentage, but I dont know what that percentage is. And if a company doesnt turn up at court then they assume that they have agreed.

Hope this helps.

thecableguy12

if your living of 50 per week your income will be to low to consider an iva, in my time in insolvency northern rock was vey hard t get accepted and alsways made silly excuses etc, if your renting and have no assetts and low income i would advise Bankruptcy, northern rock own way over 75% of the debt therefore almost every iva company would not bother drafting a proposal as such a high chance of rejection hope this helps

clasophlia

Thankyou for the replies, it means alot as i feel abit on my own atm

Well we have around £50 to live on after all bills are paid but that doesnt leave alot for food etc.

I have been studying but im now looking for a job which wld help.

Bankcruptcy scares me if i am honest - not that i am ruling it out, but i am worried about losing my rental house if our landlords found out and also if we needed to move in the future, our credit ratings would be bad so we wouldnt be able to rent privately.

We have a good credit score at the moment and we are up to date with all payments, (minimum) but like i said we dont have much to live on atm as my tax credits have stopped which i have to look into asap.

I was hoping i would get some money back off bank charges and credit cards charges from a few years back now and that would go towards paying off some of the debt. I am still waiting to hear.

I am not sure if i should leave it any longer to see if our situation improves or do something now in case it gets worse which it will if interest rates rise as my loan is not fixed:(

Sorry for waffling and thanks again for your replies, I will sort this somehow - i hate being in debt, just made some stupid mistakes like re mortgaging at the wrong time with northern rock.

Also could someone tell me what would happen if we didnt make the full payment each month? Could they force us to go bankrupt or would it be a case of bayliffs coming round?

Charco_2

clasophlia wrote: »

Well we have around £50 to live on after all bills are paid but that doesnt leave alot for food etc. Just to clarify, does the £50 come after you've paid your creditcard bills and loans etc or just after you've paid your household bills (gas, heat, light, rent). You should work out your finances of running your home BEFORE you take into account and unsecured loans, Credit Cards other borrowings and demanding letters. So you should have your food paid for BEFORE working out what you can afford to pay your creditors.

Bankcruptcy scares me if i am honest - it is scary, no doubt - not that i am ruling it out, but i am worried about losing my rental house if our landlords found out and also if we needed to move in the future, our credit ratings would be bad so we wouldnt be able to rent privately. Many people over on the bankruptcy forum would be able to advise you on this... there is life after BR

We have a good credit score at the moment and we are up to date with all payments, (minimum) but like i said we dont have much to live on atm as my tax credits have stopped which i have to look into asap. Does this involve a little bit of robbing Peter to pay Paul? As i said work out your finances WITHOUT all your minimum payments going out. This will give you a clearer picture of what you can afford to contribute towards a debt solution. You should be able to find Income and Expenditure lists easily enough.

I was hoping i would get some money back off bank charges and credit cards charges from a few years back now and that would go towards paying off some of the debt. I am still waiting to hear. I wouldn't hold your breath, Banks play all sorts of silly games over this. I certainly wouldn't rely on it as your debt solution. If it comes through it would be a nice bonus though!

I am not sure if i should leave it any longer to see if our situation improves or do something now in case it gets worse which it will if interest rates rise as my loan is not fixed:( Speak to professionals now. It'll cost you nothing and there'll be no obligation. Find out if you have (m)any options and at least you'll know what's available to you.

Sorry for waffling and thanks again for your replies, I will sort this somehow - i hate being in debt, just made some stupid mistakes like re mortgaging at the wrong time with northern rock. Who hasn't? If we all had crystal balls...

Also could someone tell me what would happen if we didnt make the full payment each month? Could they force us to go bankrupt or would it be a case of bayliffs coming round? Speak to a professional. Then speak to your creditors if you need to. It would be a long time before they had bailiffs coming round (esp as you're saying you're up to date!) and you'd hope to have a solution in place well before that.

Good luck!

AngelRainbow_2

Northen Rock are notorious for being a little awkward with IVAs - but it can be done. IP Melanie Giles has a good reputation at getting IVAs approved with them as the main creditor. Google her and give her a ring (I'm not allowed to post links yet!)

By the way, an IVA has an adverse effect on your credit reference file in the same way bankruptcy does and you also appear on the insolvency register.