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Hello; I feel totally trapped at the mo - I currently have £80k in various unsecured loans (6 creditors) and at the moment I am dealing with Payplan. I have one company Northern Rock who have an interim charging order on my property, which I own jointly with my partner. All of the debts are in my name only and I now have a hearing for a final charge order to be placed.

I am at a total loss what to do, and my partner is in dispair about losing our home. Is there a way I can keep my home or will Northern Rock force me to sell it.

There is currently no equity in the property, but I think if I was to sell it it would make approx £25,000 more than I purchased it for.

Payplan have said that if I pay £150 for 3 months they maybe able to do an IVA, but Im thinking in 3 months I could be homeless!!

Please can someone help?

Micky

Hi micky and welcome to the forum

You need to take action very quickly to stop that Charging Order. A very quick IVA would suffice if an IP could get you an Interim Order in time to stop the Charging Order. How much disposable income do you have? If only £150 then an IVA is probably not the right solution for you.

Please post this information immediately as there is not much time and I cannot understand what your current advisor are doing! Also can you list the debts individually, as I suspect that Northern Rock may well have more than 25% of the total.

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 and many thanks for the advice;

I would like to set up an IVA prior to the hearing on 31st May 2pm. Is this possible as Payplan are currently useless and not working quickly enough. They are even failing to pay some of my creditors.

The breakdown of my debts are:

Northern Rock Unsecured Loan - £25k borrowed - they want £36k.
Northern Rock Unsecured - £18k
Cooperative CC - £12,500
Egg CC - £4,500
Halifax CC - £4,500
Lloyds TSB - £6k
CITI CC - £7,500
Capital One CC - £1000

I can afford possibly £250 - £300 per month I feel as my salary has gone up slightly. I am desparate to set up the IVA as under no circumstances can I lose my house. Are Northern Rock likely to force me to sell if they get the order made permanent?

I have no equity in the house.


Any help would be gratefully received.

Micky

Hi Melanie;

If an IVA is possible, I would definitely use your organisation as IP if we could move quickly and get an interim order. If this is possible how could we proceed. I could even apply to the court to postpone the final hearing as it has already been postponed twice.

Regards

Micky

Hi Micky,
Sorry to hear about the charging order...although you've found the right place to get the right help and advice to sort things out.

We were in a similar situation with PayPlan - they were unreliable and the process really dragged on (after a month, still talking to their debt advisor about our income/expenditure!). After finding this site a few weeks ago, we were in touch with Melanie within a couple of hours, our many questions answered and are now swiftly moving towards our debt solution. [88]

So I'd definately recommend moving away from an IVA factory and towards one of the pros on this forum who are accessible and can offer fast personalised care.

Good luck!

Best

OW

- 'I wont cry for yesterday 'cause there's an ordinary world somehow I have to find...'

Thanks OW!!

Its reassuring to hear that there are people with similar problems to me out there. Sometimes you feel as though you are absolutely trapped and if I lose my home it will have lots of negative effects on my life.

I was really pleased to find this site and I think I may have found it in the nick of time to find some kind of solution.

Payplan seemed the perfect solution but after 4 months with them and paying them £120 pm I am still being contacted by collection agencies who say that they have had no financial breakdown sheets that I sent to PP ages ago.

I thought they were the last straw until finding this site.

I can suddenly see that there is a light at the end of the tunnel by reading other people's experiences.

Many thanks for your advice.

Micky

Micky

Sorry for the delay in my reply. I have been in meetings all day!

If you would care to e-mail my website with your details, and fill out the forms, we can then proceed to assist you. There is plenty of time before 31 May 2007 to deal with this, but get me the information as soon as you can and we can then begin to work.

At this stage, however, I have to warn you that it will not be easy to persuade Northern Rock to accept an IVA if they feel the charging order puts them in a better position, and they cannot be outvoted given the size of their debt.

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;

Many thanks for replying, I have sent through my details to you so that you can see an accurate picture of my position. I was concerned that Northern Rock would be difficult to pursuade.

If an IVA was not an option and I went to the hearing, would they allow mw to continue on a DMP but allow me to stay in my property or would they want to force a sale. (This is my worst nightmare).

I would happily continue payments with the realisation that when I came to selling the property they would get 'their share of my share' but would be horrified if they then progressed to make me sell up.

Ive heard conflicting accounts - some advisors (Payplan) have said that they will pursue the sale of my house at all costs, where some have advised that with the lack of equity it would be in their interest to sit on the investment over many years.

If I knew my property could be kept then I could sleep easy.

Kind regards and thanks

Micky.

If an IVA is not accepted by Northern Rock, and they are successful in obtaining the charging order, then they effectively become a secured creditor and will want you to make ongoing payments to them of a sum to be agreed by you and them.

They can then only make you sell if you do not honour the agreement - so I am afraid that I do not agree with Payplan on that point.

You then still will have the other creditors to deal with, perhaps via a debt management programme or even bankruptcy proceedings - which are not a problem then as you have no equity left in the property.

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