Grant Thornton and Northern Rock

[Rainbow]

HI all just thought I would pass on some info that Nancy from GT gave me yesterday about NR she said currently they are advising clients with debts with NR (We are not in this position thankfully but she was using it as an example) they are advising them to enter into DMP and not go for an IVA as they believe that NR will change their stance on IVA's in a few months - then to try in a 6 months or so for an IVA.
Rainbow

[westonr]

I think this is poor advice form GT as they are basically saying that NR will not approve any IVA - I've been led to believe on here that is not the case and each proposal will be judged on its merit, as it should be. I appreciate you posting these comments but it does make me nervous when i read them, especially as my meeting is on Tuesday, with NR as my largest creditor - my IP has never suggested this to me so i am hopeful that my proposal will be successful.

regards

[ivoriva]

I found this on another forum, dont know if its true:-

Northern Rock have said they are not rejecting across the board but will reject anything where the debt was taken out on a long term (usually attached to a mortgage) and where there is still a large part of this term left. For example, if you propose an IVA where the debt was taken out over a 25-35 year term, but is only 1-5 years in – they will reject.

They are also likely to reject if you have kept up with the repayments.

[stam]

HI all just thought I would pass on some info that Nancy from GT gave me yesterday about NR she said currently they are advising clients with debts with NR (We are not in this position thankfully but she was using it as an example) they are advising them to enter into DMP and not go for an IVA as they believe that NR will change their stance on IVA's in a few months - then to try in a 6 months or so for an IVA.
Rainbow

[susanc22]

Hiya,

Dont know whether this helps but Nancy from GT advised us that NR will not accept anything less than 45p in the £1.

Good Luck westonr with the meeting x

[stam]

We too have been advised to go into debt mangement until NR's stance on IVA's alters, or the new legislation comes into force regarding SIVA's. I must confess I am a little worried about this. I read somewhere the the new legislation will help people with up to 85k worth of debt, we have considerably more (120k) with NR having the casting vote. Am I wasting my time waiting for the new legislation to come into force, if it is going to be of little help anyway? Any info on this would be gratefully appreciated.
The DM company are in the process of setting up the debt management plan. This is our first month of defaulting on payments, the nasty letters have just started to arrive, never really dreaded the sight of the postman at the door before.....might get a dog[:)]

HI all just thought I would pass on some info that Nancy from GT gave me yesterday about NR she said currently they are advising clients with debts with NR (We are not in this position thankfully but she was using it as an example) they are advising them to enter into DMP and not go for an IVA as they believe that NR will change their stance on IVA's in a few months - then to try in a 6 months or so for an IVA.
Rainbow

[MelanieGiles]

The £75,000 will be applied individually rather than on you as a couple, so if your individual debts are lower than £75,000 you will be candidates for SIVAs as and when they arrive.

Can I just say that entering into a DMP until the arrival of SIVA's still leaves you at risk from ongoing action from your creditors, which may include bankruptcy petitions, charging orders, attachment of earnings orders, or County Court Judgements which may leave you at risk from action by bailiffs. Property owners should therefore proceed with caution.

I personally continue to find Northern Rock an extremely commercial creditor - who do review every IVA proposal diligently to ascertain if it is the best option for them. You really cannot expect an organisation who lend large sums of money, at very low interest rates over extended terms, to be too pleased when clients pay a few contributions and then look to enter into an IVA. And so far as I am aware, and as my own experience indicates, there is no such thing as a 45p in the £ minimum dividend criteria.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[stam]

The 120k debt is an individual debt not a joint debt, sorry if the 'we' confused

Do county courts harshly judge people who enter into DMP, I am paying a considerable monthly sum (£800.00 per month), not much less than an IVA. All advice appreciated

Thanks

The £75,000 will be applied individually rather than on you as a couple, so if your individual debts are lower than £75,000 you will be candidates for SIVAs as and when they arrive.

Can I just say that entering into a DMP until the arrival of SIVA's still leaves you at risk from ongoing action from your creditors, which may include bankruptcy petitions, charging orders, attachment of earnings orders, or County Court Judgements which may leave you at risk from action by bailiffs. Property owners should therefore proceed with caution.

I personally continue to find Northern Rock an extremely commercial creditor - who do review every IVA proposal diligently to ascertain if it is the best option for them. You really cannot expect an organisation who lend large sums of money, at very low interest rates over extended terms, to be too pleased when clients pay a few contributions and then look to enter into an IVA. And so far as I am aware, and as my own experience indicates, there is no such thing as a 45p in the £ minimum dividend criteria.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[MelanieGiles]

County Courts do not judge harshly those in Debt Management Programmes.

And can I ask who has advised you to go into a DMP pending the introduction of SIVA's, when you do not fit the criteria for that procedure?

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk