www.iva.co.uk

My partner has been on the phone to the company willing to start the IVA process, Northern Rock are his biggest creditors, he owes them £24,000, and the IVA company have told him they will want at least 40p in the pound, is this about right?

Also they still tried to get me and him to pool our resources on the IVA, which as I've posted before, I'm not willing to do so as they're not my debts.

Another question, when you finish the IVA, does it show on your credit report for 6 years? Or do you start completely afresh?

Another one (sorry) out of his creditors, does anyone know if they are ok with the IVA process, they are

Northern Rock
MBNA
Egg
Marbles
Halifax

Northern Rock generally operate under a 45p in the £ criteria - that said I have seen a case go through recently based upon 40p so he might be lucky.

You should not offer your surplus income up to his IVA - but maybe keep that up your sleeve if he gets a rejection, so that you can help him to improve his offer.

With regard to credit rating, it will remain on his credit file for 6 years from commencement and not completion.

MBNA - very unhelpful at the moment. Make sure that he has taken steps to talk to them directly about his difficulties before he commences an IVA, and offer them some form of ongoing repayment plan (which they are unlikely to accept). Tell him to record the name of the person he speaks to and the date of the conversation.

Egg, Marbles, Halifax - are generally OK, but Egg do not like accepting IVA's where payments have continued to be made to them up to the date of the creditors meeting.

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

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

Hi Melanie
I have Northern Rock as my major creditor.
I am looking at going into an IVA hopefully with Thomas Charles subject to them accepting.
I am worried now as i have worked everything out and after IP fees i think my offer will be 41-42p in the £
Zoe
x

Thanks Melanie, he's on a debt management plan at the moment and hes paying them all apart from Marbles which he has continued to pay normally as he wanted to keep at least one credit card.

If he does decide to go down the IVA route, will he have to put this Marbles card in with the rest?

As for MBNA, we have had countless phone calls from them to home and his mobile several times a day, but I think he owes them the least out of them all.

Zoe - that should be OK, but they will really press your income and expenditure probably.

Hellybelly - all debts will have to be included, and they should have been in the DMP as well!

MBNA are renowned for their persistent phone calling. Use Neverending's suggestion and call them yourself each day instead!

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

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

Hi Melanie
I have kept up payments to northern Rock but am really struggling.
Should i write to them now to tell them i cannot afford it before i go for IVA?
Z
xx

Hi Zoe

If you have been maintaining payments to Northern Rock, I assume that your other creditors have been suffering. It is not fair for one creditor to get the lion's share, and therefor you should either suspend your payments to all creditors or pay them ongoing pro-rata payments based upon your surplus income in equal proportion.

If you have been paying normal contractual payments right up until the time your IVA proposal has been approved, Northern Rock will doubt that you are in financial difficulty at all!

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

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

Thaks Melanie
I will write to them and advise,
I had been paying all my people up until this last 6 weeks! but cannot do this anymore!
Zoe
x

Hi
Dont know weather i was just lucky or the fact that i kept Northern Rock informed of what was going on, but my IVA wast accepted last week and that was at a div of 40p/£ so there is hope.

ANDY

Hey Andy - we were all glad to receive that post. I used it to my advantage with Northern Rock just today!

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

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk