www.iva.co.uk

Hi again, my husbands IVA attempt failed for the 2nd time yesterday and apparently there will be one more attempt by B and E and then probably try for a DMP. Its NR that are failing it, they want it all paying back. My question is, if my husband does a DMP, he can only afford the monthly payments that were worked out for the IVA. To pay off the total amount owing (and that is if the interest is stopped) will take 19 and a half years. He is 51 years old now. I am wondering what will happen when my husband retires etc. Will he be expected to find the money from a pension??? WHat happens if NR fail the DMP too?? We don'[t want to lose out house, we have two young children.

Sorry NR are being so awful to you.

You could try a DMP as a stop gap, and then a few months down the line try again for an IVA. If you do that, I would try a different IP.

NR don't have to agree to a DMP, but I think they would. Unfortunately, your husband would be expected to carry on paying this out of his pension.

Hi da1,

Sorry to hear that the best efforts of your husband to sort this situation have been thrown in his face! is BR not an option? I am sure it does not mean you will lose your house especially if there is is little equity?

Does anyone know if NR are in the habit of selling debts on,what I mean is could a dmp be used until NR sell on the debts and then would there be a better chance of whoever buys the debts accepting an IVA??

It is unlikely that NR are rejecting your husband's IVA just because they want all of their money repaying. This is not their general criteria - although they may feel that he could pay it back in 7-8 years without an IVA, and therefore they ought to be supportive of a DMP.

How much is he offering to pay on a monthly basis, and how much does he owe to NR and his other creditors? Unless anything is going to change in the proposal, there seems little point in representing it again.

Hi da1,

In our experience Northern Rock are pretty supportive of DMP's where they perceive that their client is doing their best to repay the debts as fast as they reasonably can.

If you have to take this route other options (such as IVA's, bankruptcy, informal settlements etc) will remain open to you in the future.

If income reduces (for example once your husband retires) the DMP company would accordingly reduce your monthly contribution so that you could continue to live reasonably.

Thanks for all your replies. The total debt owing to 5 creditors is £38,000, £11,000 is to NR and I beleive that this is the most, My husband can pay £161 a month on an IVA or DMP at the present time.

Just to add, B and E have gone back to them and said that my husband would pay for an extra year. The deadline for this is now 19th Feb

In my experience NR will go for this "extra year" What needs to be shown to them is a matrix of what your suggested IVA payment would result in if paid as a DMP over 5 or 6 years with all your creditors charging their normal interest and seeing what would be notionaly owed at the end of 5 or 6 years. Invariably this would be more than what was owed on day one - hence they will agree to an IVA. Good luck.

Good luck da1, I hope your hubby's IVA is accepted x