Got to move to DMP, Northern Rock wont play ball!

twoflower169

Hi,

Just wanted to say thanks to all for your support and answering my questions.

We have spoken to our IVA company and we we're told that Northern rock have changed their minds and now wont go ahead with IVA, (as they are 50% of our debts our iva company decided to canvass them first) after we agreed that we would go to interest only mortgage, they went back and done their sums and worked out that if we were on DMP they would get all their money back where as on an IVA they wouldn't get as much at the end of the 6years.

So we have no choice but DMP, as Bankcrupty is not an option.

So now I have to start the whole process again, CCCS will get back to us in 48hours.

Just when I was starting to get to grips with it all.

Thanks again. Twoflower

Charco_2

(this is just nosiness now on my part so tell me to clear off)

1. Are you now on an interest only mortgage?

2. Has it been indicated to you how long your DMP would last?

bagpuss01

I've had our IVA meeting today and Northern Rock have given a negative vote (26% owed to them), they have said that they will vote again if we go on a interest only mortgage. I've agreed to that and we have to wait now for another 7 days to see if they are going to change their vote.

I can't believe that they would ask us to change if they are still going to say no. But that's what they have obviously done to you. Did you get to the meeting stage did they vote? Or wasn't it done like that?

I'm devastated after reading your post, as I thought that it would now be okay.

Charco_2

I would imagine that this would be okay Bagpuss BUT the general way for this to be done is that they would put it into the IVA as a modification for the creditors meeting and accept the IVA provisionally on this (you'd agree the mod and the IVA would go ahead)...

Who is your mortgage with?

bagpuss01

Charco, my mortgage is with Northern Rock, I have a together Mortgage, £140,000 mortgage and £29,000 loan. I'm doing the IVA with DFD and now that I've agreed to changing to interest mortgage I still have to wait for the revised meeting in 7 days. This is driving me mad I can't sleep and I thought I would all be sorted today, one way or the other. I thought we might get modifications but thinking that if I agreed they would then say okay. But gutted to think that I still have to wait at least another 7 days, as apparently they have 14 days to get back to us.

twoflower169

Charco - Answers 1: No we are not on an interest only mortgage now.

2: Initially it was 17years but we have now changed alot in our budget so not sure yet.

Our biggest problem now is getting our other creditors to agree that we can priortise NR, not sure how that will work out, how likely is that to happen?

Bagpuss01: Dont worry about my example compared to yours, NR were 50% of our debt so IVA company checked with them first that they would agree, they did, but they then came back and said no, cos they had redone figures and worked out they wouold get all their money on a DMP, so I wouldn't worry from that point of view. Hope this helps.

Charco_2

See this is where there should be some sort of appeal system available in the IVA/Insolvency system. NR are throwing their weight about in your instance... I wonder of the Office of Fair Trading, FSA or Financial Ombudsman would be interested!? I mean, NR were the first to hold out their hands for a rescue package last year weren't they and now they are denying you the same privilege! They above all should understand how finances can get away from people and a little out of control.

How can they possibly say that 200 months of repayments is the fairest solution for you?

twoflower169

Thanks for yor reply, is that something I should do by myself or should I talk to cccs about it too?

It doesn't seem fair as now its going to take us so much longer!!! Arrrgghhhh!

twoflower169

Charco just spoken to my DH again and it seems NR said if we didn't want to include them in DMP we didn't need to but if we did it (NR that is)would be paid in 8.5years I really dont understand where they get this figure from as from the cccs debt remedy that I just done it said it would take us 15yrs.

Now I'm just in a right pickle and feel frustrated as I dont understand their conclusions!
Will have to talk to cccsva myself I think!

Charco_2

Appealing the decision of a creditor for an IVA is not something that's ever been done before that i'm aware of so i wouldn't know who what or where to turn to but it just seems so unfair.

They know they've got you over a barrel so it would seem your situation is not being considered on it's true merits.

I wouldn't listen to a creditor that claims you can treat them differently from any other creditor. I'm sure they'd all like you to ignore the others and pay only them