www.iva.co.uk

Hi
There is an ongoing legal case where two debtors have had their IVA rejected by NR[no surprise there]where NR were the majority[+25%]creditor and the only one to vote no.NR then,after rejecting the IVA, obtained a judgement and then a charging order,changing an unsecured loan into a secured loan.
I wonder if this is really the route that they are going to continue down if this legal action proves unsuccessful and the reason for them rejecting so many.Remember that many IPs are not even proposing IVAs where the debtor has debts with NR that are more than 25% of the total debts.
I think that it,s going to get very interesting.
Any thoughts ??

Andy Davie
IVA.co.uk Spokesperson

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hi andy
interesting you should say because yesterday I was contacted by a large IP firm who asked if they could use my case along with several others who have had IVA's rejected by NR to take them on in a court battle I don't want to say too much about it because I know that NR read this but its interesting to note that many IP's now are not even bothering to look at clients who have the words NR written in their creditors list -

Yes, very interesting – as a footnote we deal with Northern Rock and I have emailed our Business Development Manger (BDM) there to request further information on their together product;

“I am involved in a number of debt advisor forums – I have noticed a marked increase in the number of people seeking IVA’s and also have noticed that a large proportion of those individuals have taken out the Northern Rock together product. Does the Northern Rock (unsecured section) have a clause that states that the loan will be secured if it defaults or the borrower misses three or more payments?

Reason that I ask is that Northern Rock seem to be able secure the unsecured proportion of the loan easier than other lenders, so I have assumed there must be something in the agreement that the client has signed. "

I am still waiting their reply and have been told it could take up to six working days (email sent last Friday) - will keep the forum posted.


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I have (had) the Together product. Nrock have not tried to secure the unsecured portion. I did have some court papers last week for this loan, but went bankrupt last Thursday. I was thinking that they might have tried for a CCJ?

I was actually just thinking about this today, as news of our bankruptcy is slow to get to the creditors, what if this loan becomes a CCJ AFTER the date of bankruptcy?????? What happens than??

the unsecured part of the loan jane will be covered by your BR so they will not be able to make it into a ccj so don't worry.
kerri

Please view my blog at: http://scaredkez.blogs.iva.co.uk/

Hi there, all these comments about Northern Rock are beginning to worry me with regard to my IVA. I have an unsecured loan with NR (now part of my IVA). They are not one of my largest creditors but bearing in mind how they are now performing with people proposing to enter into IVAs, could they possibly fail my IVA when it comes up for review in October?

Regards

Liz

I dont think they will fail it. I think the point people on this forum are trying to make is that its hard to get northern rock to agree to an IVA being set u if they hold a majority debt

Hi Liz
If your IVA has been agreed they are legally bound by it.

lily

From what I have heard it more to do with the IP's and other major creditors getting fed up with NR - remember that the IVA fails if NR reject it so its not just the normal public or IP's that are affected its the other major banking institutions - they are the ones losing out - I received a CCJ from them today too but I am going BR tomorrow - its a shame because they are not helping people