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Unsecured or Secured NRAM Loan - confused
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thinkpositive1
Posts: 148 Forumite
in IVA & DRO
I took out a Northern Rock mortgage product almost 5 years ago which was a mortgage + loan.
To cut to the chase I got into difficulties paying my mounting debts and ended up arranging a DMP. The unsecured N Rock loan was included in the DMP but N Rock was the only creditor not to agree to a reduced monthly payment - eventually they took legal action and placed a "Charging Order" on my property. In effect that loan is now secured on the property.
A year ago I moved from a DMP to an IVA and the loan has been kept "outside" the IVA as it was understood to be a secured debt rather than an unsecured debt.
However, I was talking to N Rock today and on their own records it says that the loan is technically "UNsecured". They know I am on an IVA and the person I spoke to at N Rock was surprised that loan had not been wrappped up into the IVA!!!
Terminology seems confusing here. He confirmed there was a charging order on my property (so if I ever sell up, N Rock will have first call on me to cough up and clear the loan balance) BUT that it is still an unsecured loan and not a secured one - hence my confusion.
Have I missed a trick here? I am due my 1st year "review" if my IVA with the company that sorted all the arrangements. I know I need to ask them about this but would be grateful if anyone else has had the same experience or can advise?
To cut to the chase I got into difficulties paying my mounting debts and ended up arranging a DMP. The unsecured N Rock loan was included in the DMP but N Rock was the only creditor not to agree to a reduced monthly payment - eventually they took legal action and placed a "Charging Order" on my property. In effect that loan is now secured on the property.
A year ago I moved from a DMP to an IVA and the loan has been kept "outside" the IVA as it was understood to be a secured debt rather than an unsecured debt.
However, I was talking to N Rock today and on their own records it says that the loan is technically "UNsecured". They know I am on an IVA and the person I spoke to at N Rock was surprised that loan had not been wrappped up into the IVA!!!
Terminology seems confusing here. He confirmed there was a charging order on my property (so if I ever sell up, N Rock will have first call on me to cough up and clear the loan balance) BUT that it is still an unsecured loan and not a secured one - hence my confusion.
Have I missed a trick here? I am due my 1st year "review" if my IVA with the company that sorted all the arrangements. I know I need to ask them about this but would be grateful if anyone else has had the same experience or can advise?
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Comments
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I think the only confusion here is in product names, if they have a final charging order prior to the iva then it is not included as a debtHi, im Debtinfo, i am an ex insolvency examiner and over the years have personally dealt with thousands of bankruptcy cases.
Please note that any views i put forth are not those of my former employer The Insolvency Service and do not constitute professional advice, you should always seek professional advice before entering insolvency proceedings.0
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