www.iva.co.uk

I have a client who is fileing for bankruptcy following the rejection by NR.

They are in a right state about it. We have assisted in the completion of the paperwork and are going to go to the court on the 28th Jan with them.

Could anybody out there with positive comment please assit, I am sure you comments will help them through this difficult tiime

I am going round again to see them tommorow and would like to be able to show that life has not ended.


Dave Beech

I went BR after my IVA failed and it was nowhere near as bad as I was expecting. I have just under 3 months left to go until I'm discharged, and it has flown past. I have been keeping a record of my failed IVA and subsequent BR in my blog - I don't know if that might help them.

Yesterday is history, tomorrow is a mystery, today is the present - a gift to make the most of.

View my blog at http://skippy13.blogs.iva.co.uk/

Thanks Skippy, would you mind if I print it off and take to show them, before I log on and hopefully have a good selection of responces on Iva.co.uk to show

Dave Beech

I am curious as to whether Northern Rock voted for outright rejection of the proposal or had modifications that your client was unable to commit to agreeing to?

Northern Rock are themselves in quite a bit of trouble and I still find it difficult to comprehend that they are so seemingly willing to have in most instances, nothing at all as opposed to a return in an IVA.

Does your client own a property? Maybe Northern Rock hope to recover something from the property in bankruptcy?

I think I would assume that since you are accompanying your client to the Court on 28 January, they are petitioning for their own bankruptcies? In doing so they have been given that advice as the best course of action to take?

If they do not own a property, then it may well be the right thing to do and really, at the end of the day, Northern Rock have not just ruined it for themselves, they have scuppered any chance of a return for the other creditors too. It's a shame they take such a view, in my opinion.

As far as your clients are concerned, if they are not a property owner, it's almost going to be a fresh start for them. Though without knowing more precise details about their circumstances, that is not a certainty. It may well be that the Official Receiver has criteria that are met and could propose a Fast Track Voluntary Arrangement, more details of which can be found here:-

http://www.insolvency.gov.uk/guidancele ... a/ftva.htm



Tell it like it is.

NR voted for outright rejection, they do own their pwn house which is in negative equity. Which of course is indicated in the SA.

This was also pointed out to NR who indicated that this situation would not change their minds

Dave Beech

Not at all Beechy, I hope it helps your clients.

Yesterday is history, tomorrow is a mystery, today is the present - a gift to make the most of.

View my blog at http://skippy13.blogs.iva.co.uk/

Cheers skippy I am sure it will

Dave Beech

Hi
It will be very interesting to read NRs reasons for rejections come February.Let's hope that they change their ridiculous stance soon and start abiding by the banking code
"We will consider cases of financial difficulty sympathetically and positively."
How can rejecting an IVA in favour of a negative equity bankruptcy be positive ?

Andy Davie
IVA.co.uk Spokesperson and Website Manager

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

Andy

Northern Rock always give me reasons as to why they are rejecting - and tell me that this is across the board. I do wonder if some firms press enough to find out the reasons why in order to debrief their clients.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

I can assure you we do try to get a reason for the rejection in order to debrief our clients, and if NR say the rejection is "due to the fact a client has no arrears on their accounts with us", I guess this is a good enough reason to reject even when Feb comes around.

Unless of course clients are told run up some arrears with NR so they have to find a new one.

I will pass your comments on to the case manager of the case involved, she was nearly in tears when this one got rejected.

Dave Beech

That wasn't directed at your firm Dave, but was a general point. I did read your earlier post where you made it clear that you had tried to find out and been given a reason!

Sometimes creditors only look at things from their own perspective, and fail to understand the overall picture, but as Northern Rock are monitoring their rejected IVA portfolio and finding that less than 10% of people actually do go bankrupt, you can see where they are coming from sometimes.


Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

NR was one of my creditors they didn't reject outright but wanted modifications which couldn't be met, black horse voted no outright and wouldn't be moved, i went BR in april and was discharged on the 25th september exactly 6 months to the day, i must admit that the BR process was not as near as bad as i thought it was going to be on the day, hubby and i both declared, we have to live with it, hardly any one knows about our situation, but there was no other way out for it for us after the iva was rejected, although i did try every avenue it was the best thing that both of us could do, we are not proud about the situation but we have now began to live again without the worry of the creditors banging at the door, i certainly would never get credit again, we will lose our home, but have been given at least 3 yrs grace with the house with the OR as long as the mortgage is paid, wish your client luck dave and tell them from me, although it is hard to face up to the fact of going BR its not as bad as they think.
kerri

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

Hi
But Mel it can't be right that people are denied the best solution to their debt problems and forced into neverending debt management plans just because NR want to protect there balance sheet.
They can do as they wish,obviously,but should not pretend to be party to the banking code.
Regards

Andy Davie
IVA.co.uk Spokesperson and Website Manager

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

According to NR they have a good balance sheet. And as a matter of interest has any other bank or lender posted their figures relating to rejected IVA to bankruptcy ratio.

If these figure from NR are correct (and I have no reason or evidence to disput tham) why are some creditors acceping IVA's, because if NR are correct 90% of the people who apply for and IVA dont really need one?



Dave Beech

Hi

My IVA was also rejected by NR, who as my main creditor left me with no alternative but to petition for Bankruptcy.
Although I asked, I was unable to get any feedback as to why they would not consider what i thought to be a solid proposal, I was told it was a NO.
It still bugs me a little to this day, even nearly 5 months after my BR petition.

My assumption is that their rejections are based on that only a small minority of all rejected IVA's proceed to BR with the majority finding other solutions to their debts. Although in my case I feel it was more due to the equity in my property and the probability of a charging order around the corner.


Beechy as far as your client is concerned, I feel for them as I cannot remember ever being so stressed as during this period of rejection and filing for BR.
BR was absolutly nothing that I had imagined, life continues but a far less stressful pace. I sleep, I am back to my old self at work, I no longer have control of my debts but that has taken the of the worry and dread away. I have been allowed to keep my car, have a realistic I&E. The only outstanding issue is my Home with equity but as your client is in negative equity then it really does seem the best way forward for them. Also just to note that although I have not advertised that I am BR, I have not had any stigma either, that may also reassure them.

My original iva proposal would have given 55p/£ (NR would by the end have received just over the original amount borrowed) in BR it was calculated at approx less than 5p/£

Pippa