Is this just a standard letter?

[pleasehelpme22]

Last week i wrote to all my creditors informing them of my intention to enter into an IVA (if accepted) well today i have recieved a letter from Northern Rock one of our creditors (joint with partner) it thanks us for informi9ng them how ever tells us we will need to continue paying them until an IVA is approved if we do not they reserve the right to commence legal sction in order to protect there postion.

Just wondering if these were standard letters as i know i shouldnt pay them as not allowed to favour one creditor over the other?

It also says i need to ask my IP to forward a proposal to them within 4 weeks , Are proposals ready that quickly??

Tanya

[Oliver]

May I ask if your Northern Rock loan is attached to your mortgage (Together Loan)?!!

[pleasehelpme22]

Oliver

Yes the loan was taken out with our mortgage however we sold our property in March and settled our mortgage and secured loans with NR and are just left with the unsecured loan amount. However as the mortgage was redeemed the loan rate has gone up . Hope that makes sense

Tanya

[Oliver]

The difficulty is that you obviously don't have the funds to pay all your creditors each month (hence you are entering into an IVA), so to pay Northern Rock would be to treat them preferentially.

I would suggest that you contact your IP and they will advise you to either make a pro rata payment to all your creditors with the money you can afford or simply not make any payments to your creditors at all.

[pleasehelpme22]

Thanks Oliver

Im going through Melanies team so i imagine melanie will read this post.

I will call them now though just to confirm im not to make any payments as this was what i was told initially.

To be honest we havent got any money to pay them with anyway as we are now with a new bank etc

[Oliver]

You are in good hands. If Mel has told you not to pay any of your creditors then you should not treat anyone preferentially until you have spoken with your IP.

[MelanieGiles]

I have no problem in you continuing to make payments to your creditors, so long as they are on a pro-rata basis and that each ones gets the same share from your disposable income. Sometimes this can be difficult to calculate and manage, and creditors are likely to pursue you in any case whether you pay or not.

[Moneystinks]

We have had exactly the same letter today. I have scanned it and emailed it to Melanies office. I am assuming that we are in a no win situation until we get a date for a meeting etc. If we pay they will get in touch and if we don't they will?? I have asked a few questions anyway like should we pay is it a standard letter etc, etc. I have assumed before and been wrong lol. Hopefully things will start to move forward soon it is all starting to affect my health now. Good luck with your process pleasehelpme22. xx

[pleasehelpme22]

Thanks Melanie and Marie

Melanie i think we will carry on not paying any of our creditors as to be honest until i start my new job on 112th May we barely have the money to survive each month let alone pay our creditors and im already stressed enough without having to manage pro rota payments etcc.. i think i will just sit out the letters and calls etc as like you say they will prob chase either way anyhow.

Moneystinks are you with NR too? Is your a loan or mortgage? Im with you on the affecting your help comment! The not knowing is the worst , you know the how long will it take and then the worry of the proposal being accepted ect... were both feeling it here too!

[Moneystinks]

We have a NR loan. I sent an e mail to Mels team and I am sure if there was a problem they would have rang or e mailed back but as of yet I have not heard anything. I am going with the no news is good news today, as it is not a good day. I am hoping all this part is over soon and that we will know one way or the other. I feel incredably stressed and keep getting tension headaches - I am really friendly with the carpark at work now as I keep having to walk round it to try and clear my head. My boss thinks I am going mad!! lol!
Hope you are okay we will all get through this, we have too! xx