confused iva or BR

[nursejojo]

I have just under £80,000 of debt, credit cards, loans and store cards. One of my loans is with northern rock. the together mortgage. House value is £85,000 and owe £65,000, but the unsecured loan is £20,000. So i roughly have between £17-£20k equity.

I wanted to go down the iva route to pay off my debt, but with northern rock voting usually against and the recent news about financial difficulties, my IP is waiting to see what happens to them.

This is causing me some anxiety and stress, as for the last few months not paid credit cards and store cards so starting to get letters, phone calls and notice of default letters. I have changed bank accounts to llyods TSB who i have no debt with, so this month won't be paying loan to HSBC as there will be no money going into that account. I am still paying unsecured loan payments to northern rock as it's in with my mortgage payments.

I just don't know whether to wait for a decision from my IP to whether she is going to put forward mt case or to just file for BR. I really dont want to loose my house, but if it comes to it i suppose i will have to. My credit rating must be zero by now. i was wondering if anyone had any advice on how i would be able to keep my house. I was going to get in touch with northern rock to see whether they would use some of my unsecured debt, and add it to my secured mortgage, therefore paying them some money before i go BR if that is the option i use. Although this might inacure fees from valuations, changing mortgage and i just haven't got that kind of money. I own the house but have a lodger, well to be honest we were together but with the debt and stress of my life at the minute, we have split up, but he still rents the spare room convient for both of us financially, and we are both happy to do this. Who knows once it's all sorted!!

I also read in the local paper about selling your house and renting it back long term, just so i could still live in the same house, to be honest renting would cost a lot more then my mortgage. I wondered how this would look in BR and what the OR would say about selling the house. How much do they allow for renting etc.

I hope someone can help

Regards jo xx

[Adam Davies]

Hi Jo
It,s a pity that your IP won't propose your IVA because if NR do reject they are sure to then try and secure their debt.This will give you no equity so that if you did go bankrupt a third party could buy your interest off the OR for a nominal sum plus costs and as long as you could afford the mortgage and ecured loan you will keep your house.
I would contact your IP and state that you are concerned that creditors are chasing you.Really you should be paying all unsecured debts pro rata and should not be paying NR the full amount for their unsecured loan.Another option is to stop payments on the unsecured part and again NR will probabaly seek to secure it.
You really need to take advice from your IP as what you should do because you can,t stay in limbo like this.
Regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[nursejojo]

Thanks Andy.

I will phone my IP and ask her about this regarding northern rock.

I just feel like i'm waiting around on her decision, and was told that she's going on holiday next week, so nothing will get done next week. just want to know what to do and whether or not she thinks it's worth doing.

How do i go about not paying the unsecured part of my mortgage as it all comes out together along with the buildings and contents payments. should i ring them and speak to them about this?

regards joanne x