www.iva.co.uk

hi again,
my mortgage is with NR who also account for just over 25% of the debt I owe (this is the reason I'm about worried about my IVA proposal!)
I have been made aware that if Northern Rock reject my IVA proposal they could secure my loan against my property. My questions are;
a) How can they do this?
b) Can I fight their decision to do this?
c) The loan is in my name but the house is jointly owned with my wife so how will this effect her share of the equity?
and d) If they secure the loan against my house can I then offer to extend the loan term to run alongside my mortgage as it is now a secured loan, therefore reducing my monthly payments?
I got my monies worth there!
Thanks

Hi
They can secure an unsecured debt by way of a charging order and there would be very little that you could do about it as by applying for an IVA your are disclosing that you are insolvent and I would think that they would have a clause in the t+c of your personal loan to say that they can do this if you are insolvent.It will not affect your wifes equity/share and I,m not sure about the ability to reduce payments,you will have to negotiate with NR on that one.
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

cheers Andy,

so, if NR reject my IVA proposal and secured my loan to my property, am I right in thinking that I could then draw up another proposal leaving NR out as the debt is now secured? And if that one is still rejected and my only option is BR, then my wife's half of the equity will still be safe?
Sorry to sound such a worrier but you know...

Hi
Yes that is correct.It may be that NR will do you a favour by securing their debt as your IVA will then stand a better chance of acceptance.
If you look at it from NR point they could secure the unsecured debt and just wait for house prices to rise and their debt will then be secure[and safe]
NR presume that you will not go bankrupt if they reject the IVA.

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