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Hi all, have just completed my proposal, as my div is only 37p/£ i am very worried this will not be accepted as Northern Rock is my main creditor, any advice

ANDY

Andyd, my husband and I were informed by our IP that HSBC and Northern Rock will reject any proposal that is not 40p/£. Unfortunately, we have HSBC as our main creditor. However, we have learned from reading various boards that anything can happen during the negotiations/creditors meeting. Who is to say really they will not accept your 37p/£? Good luck!Also, let us know how it goes.

northern rock were one of my creditors and would only agree if the div was 40p in the £ , but my other biggest creditor was blackhorse and they rejected outright and wouldn't conside any ammendments so it all depends, it all depends on what there return would be if you were to go bankrupt.

Andyd
Try not to worry yourself.I very much doubt Northern Rock will have a policy of 40p min dividend and will more than likely look at each case on its merits.Let your IP do the worrying,they have a vested interest to get your IVA approved.

Hi Andyd

Northern Rock are actually a very commercial creditor, who will look at cases based upon their individual merits. Yes they have a high criteria, but if a 37p dividend is the best on the table I think you have a good chance of acceptance. If not, why not think about offering a few additional contributions to try and find that extra 3p. - Actually the standard acceptance level required by Northern Rock as a rule of thumb is 45p.

Hope it works, it sounds as if you are very committed to the IVA.

Kez - I feel sorry for you. Black Horse have had a very tight rejection policy for as long as I can remember. They do not support any IVA's where the overall debt is more than £7,500 or the loan has been taken out in the 12 months leading up to the proposal. But at least you can hold you head up high and say you tried to repay something back, but were turned down. If more people are forced into bankruptcy by inflexible acceptance criteriae, then we might see a change of policy. I hope so!

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.
View my IVA blog at: http://melaniegiles.blogs.iva.co.uk

Melanie do you find that there is a difference in voting tactics on Northern Rock debts between loans that were taken out alongside mortgages and those that were not?

Best Regards

Oliver

Hi all, Still waiting for a creditors meeting date to be set,but after speaking with my IP I am now able to up the div to 40p/£ fingers crossed this will be acceptable.

ANDY

Hi Buddy. I know I got off lightly but I managed to get just over 25p in the £ accepted by mainly credit card companys like MBNA and banks loans like HSBC. This was on a 73K total debt with a repayment of £503 p/m. Unfortunatley Im failing because I cant keep up the repayments. My wife isnt working much now and I dont/cant find the extra cash. I have dropped into the hole of more borrowing off family for nearly 10K while Ive been in the IVA.
Im in a right old mess now with mine but there is HOPE That they will accept a lower offer in the £ if one is made, especially if that all you can affored at the time.

Good luck everyone

P_T

Hi Andyd

My main creditor was Northern Rock, my first creditors meeting they rejected my orginal offer, i had to find an extra £40 pw, to make it to 45p before the would accept.

I wish you luck and hope they accept your offer of 40p i am sure you will be ok with that.


52 payments to go

Ollie

To come back to you on the Northern Rock point - it seems that they operate different criteria if the loan is an unsecured loan linked to a mortgage - but they still seem to want more than 25p. Difficult sometimes to keep up with the constant changes required by these banks!

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.
View my IVA blog at: http://melaniegiles.blogs.iva.co.uk