www.iva.co.uk

Well after a lot of hard work by claire & Sue my proposal was rejected by 1 out of 9 creditors..Northern Rock!!!
My proposed payment was £475 (53p in pound) after i had managed to get a rent reduction as i live with a friend thinking that i could then afford to pay my creditors more!!.
Big Mistake!!!...
Northern Rock have said that i can do a DMP for 7 years paying £475 which will then clear my debt in full..
What if not all creditors freeze all interest in that time?
I could just end up back to square 1...

Hi

Creditors have to freeze interest and charges in an IVA so at least you wil have a clear end date, even though it is 7 years away

Regards

In a DMP I don't think it's guaranteed to freeze interest and stop applying charges. I'm sure Melanie will give you some expert advice. It's a shame they didn't agree to it, sorry to read that.

Hi Andy

its not an iva that has been rejected, it would be a DMP which from what i understand creditors do not have to freeze interest etc?

Hi lesley

Yes thats how i understand it?
I cannot believe that everyone else voted yes and NR being my biggest creditor said no!
Oh well, im not beaten yet!!

Yes your IVA has been rejected NR want you to complete a DMP is that right? Think Andy probably misread your post.

Alternatively, you could consider bankruptcy?

I would be tempted, on the limited info we have here. Assuming you have little or nothing in the way of assets that you need to protect, and that there aren't any professional restrictions on you then it would almost certainly be a lot cheaper overall for you.

Worth a thought.

Regards.

Sorry to hear your news, but glad you`re staying positive. Best of luck in your way forward [:)]

How awful for you. Does anyobe know is the regular occurrence???
Best of luck for your next journey x

I think it`s between 2-5%. But an IP will only apply if it`s going to succeed, maybe in this case Slekclarke was extremely unlucky with one influential creditor.

With the new debt management protocol now in place, more and more lenders should be freezing interest and charges in a DMP. Northern Rock and Lloyds tend to state that if you can repay the debt within 8 years (no interest and charges) then they would prefer a DMP as they will then get 100p/£.

I suppose that's a good thing if you wish to stay off the dreaded Insolvency register and it could suit those with employment issues etc. 8 years is a long time though!

sorry your iva has been rejected, hope you find a suitable way forward, 8 years is a long time however iva can be 5 or 6 even and many people with personal loans do actually take a term of 7 years. but there is always a way forward i'm sure your ip will advise

As with most incidents like this - we do have a masterplan B for fiveyearstogo, which I know my colleagues have already discussed with her - so hopefully good news will be posted in a couple of weeks.