Car costs

[Helhan]

We are a one car family, and also use a fair bit of public transport.

I spend £200 per month on diesel plus about £150 per month on public transport.

I understand I can allow £25 a month for servicing, £12 for tax, my insurance is £38 and I have breakdown cover £25.

As I need my car for work, would these expenses seem reasonable?

My car is worth about 10 grand, would I have to sell it? I need a seven seater for our three kids and our nephew (who is a regular visitor) I also need a reliable car for work as I am a peripatetic worker. (My previous, cheaper c\ars, were horrendously expensive to run & repair)
Any thoughts?
Helhan

[freelili]

Hi Andrea

I am no expert and I hate to say this but I think you would have to 'downsize' to a cheaper car, This was one of the first questions I was asked, I remeber them saying anything over 3,000 was excessive. On the bright side your IP has proposed with what you have so who knows?

LILY

[Oliver]

If you can justify and evidence your petrol costs then these will nearly always be acceptable in an IVA.

As IVAs are always comparable to Bankruptcy any car over a value of £1.5k can be scrutinized (as in Bankruptcy). However I have found that people are usually treated less harshly in an IVA when it comes to cars and a rule of thumb I would say anything up to the £3-4k range would be acceptable. Your car is obviously well over that so it would likely be scrutinized by your IP. However, you may be able to justify it if you need a people carry to transport your children.

Discuss this further with your IP and please post the outcome.




Best Regards
Oliver

Thomas Charles Ltd: Experts in all things IVA
www.thomascharles.com