www.iva.co.uk

Hi
I have 55k debt,
5k Northern Rock personal loan
13k Northern Rock personal loan
2.5k HSBC overdraft
7.5k visa
27500 HSBC personal loan

I have been ringing round for advice and thinking of an IVA.
Are HSBC receptive to them?
What chance is there of not having to release equity as my partner knew nothing of the problem until I revealed all this week. We have a joint mortgage, with some equity in the house.

I am going to try and speak to CAB Monday and trying to decide on an IP, plus working out exact outgoings. Northern Rock have issued a formal demand on the larger amount but are waiting until I provide them with balances of other creditors (I have until MOnday) before starting action...? Any help would be really appreciated.

Hello Jennifer

Looking at your creditors, Northern Rock is likely to be your most difficult creditor to persuade to vote for an IVA. Generally they have a rather negative attitude to IVA's believing that people jump in to IVA's far too quickly.

You probably would be better advised to attempt to reach an agreement with NR but do insist that any repayment plan includes all your creditors and doesn't just address NR's position.

You need to be aware however, that they are very likely to apply for judgement against you and then seek a charging order against your home so talking to them has its risks. You need to balance off the progress that you appear to be making with them in terms of agreeing a negotiated repayment plan with the speed with which they take legal action against you. If you judge that they are simply buying time to get a charging order then you should speak to an insolvency practitioner quickly.

Trying to reach a settlement with NR may well count in your favour if you do propose an IVA because at least they will understand the efforts that you have previously made.

I'm afraid that it's almost certain that you would need to release equity in an IVA but, to do this, would require your partners consent. You would only have to release your share of the equity, however, not your partners, but as that would require a remortgage your partner would have to agree to do so, normally in the 5th year of the IVA.

As for HSBC, they're generally supportive of IVA's but are known for looking for repayments of at least 40p in the £.

Hi
Thanks for this.
I have just phoned Northern Rock to tell them I am obtaining balances for the other creditors on Monday and the lady in their litigations dept said she would note this and hold on any action, at least until I get back to them

Going back to IVAs
What sort of equity amount would they expect me to pay in year 4 - the mortgage is 60k and the house value now 130k (joint mortgage)?

Many thanks again

Hi

I am no expert just another person in debt but would it be easier to go for a full and final IVA. You could try to email Melanie Giles who writes on this site, I am sure you would get a quick reply. I understand that NR are not happy with IVA's but a quick settlement might appeal to them and you woudld have to reach the 40 per cent criteria with HSBC.

Good luck, its a tough time when you realise the horror of debt, right???

You are amongst friends here who will offer support at this difficult time.

good luck

lily

The current remortgage requirement in an IVA is to remortgage up to 85% of the value of the house (not that you would get those terms today)but with a provision that the increased mortgage repayment need not exceed 60% of your disposable income, at the time that you remortgaged.

Once you have remortgaged and are paying the higher remortgage payment, your contributions in to the IVA cease.