hi all...just got our proposal from my ip...can anyone help me with this one. my proposal states that i need to contact my car finance and get their confirmation they will not repossess the car if i enter into an iva. now the car payments are allowed on my iva so it wont be included. has anyone else had this situation and if so what is usually the outcome!
Some car finance companies repossess when the client enters an IVA but most IP firms know this and who are the problem HP companies. It seems a little lazy of your IP to expect you to do this when repossession of the vehicle could mean loss of job and failure of the IVA.
hi there and thanks for your replies. i have contacted my ip today she said ...its just a procedure most do not repossess however they still need confirmation from us. as we contact them let them know we may be enetering an iva and that the finance payments will not be affected by this...hopefully this is normal getting really scared again...this has to be the scariest thing i have ever done in my entire life!!!
Hi! IPs work differently in different companies. Call your HP lender as soon as possible so you know where you stand...and try to get their answer in writing. Remember to tell them the payments are an allowable expense and will not be affected!! Good luck x
Seems a bit crazy to do it now when the proposal is out for signing and the issue is so important. It may be a nothing thing depending on which HP company it is but my point is we in the industry know who are the problem companies and who are not.
hi micheal..its nissan car finance, hope someone out there has been through the same and the outcome is good. micheal maybe its because this is car finance at the beginning as we only purchased the car in june? you see our old car was 12 years old and had packed in, so we had to look for finance to get to work.
Hi,
Do you have to make a balloon payment at any time whilst your IVA will be running?
We had to sort that out prior to our IVA proposal and managed to get the company to extend the term.
Regards.
IVA completed with StepChange.
Last payment Sept 2016 CC Oct 2016
I think you need to speak with nissan urgently especially as you have only taken the finance a month or so ago, I don't know if this will have any influence on their decision or not but you definitely need something in writing from them to confirm they will not repossess the car purely from you entering an IVA, have you read your agreeement carefully including the T&C's it might say something in there?
Luna is correct about the balloon payment, many car finance companies will not refinance a balloon payment for someone in an IVA and it will be impossible for you to refinance it elsewhere so this needs addressing if you have this clause, most IVA companies will just make allowances in the proposal for the payments to continue, but if you don't have the sum available to pay off the balloon payment when it comes due, they will take the car back.
font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by lem
I think you need to speak with nissan urgently especially as you have only taken the finance a month or so ago, I don't know if this will have any influence on their decision or not but you definitely need something in writing from them to confirm they will not repossess the car purely from you entering an IVA, have you read your agreeement carefully including the T&C's it might say something in there?
Luna is correct about the balloon payment, many car finance companies will not refinance a balloon payment for someone in an IVA and it will be impossible for you to refinance it elsewhere so this needs addressing if you have this clause, most IVA companies will just make allowances in the proposal for the payments to continue, but if you don't have the sum available to pay off the balloon payment when it comes due, they will take the car back.
Personally I have never had a client experience their car being repossessed as a result of entering into an IVA, but a lot of the agreements we see do given them the right. Difficult to see why this would be of benefit to the finance company, given that your payments have presumably been treated as an expense of the arrangement and we all know that the second hand car market is dire at the moment.
thankyou melani and micheal! i will talk to our car finance comp tomarrow, let them know their repayment is allowed as expence in iva and hear what they have to say if all ok...i will post back my signed proposals and cross my fingers for a good result! thanks to all also who replied your input has been a reasurrance and help thankyou x
font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by misssilly
hi all...just got our proposal from my ip...
You mention "our". Is the HP on joint names? Are you both included in the IVA? If its only one of you on the IVA/HP (or you are able to change this), then l think you may use this as a way out. Although the HP will be included in the IVA, at least the other party should be able to maintain a relatively clean credit file and at the end of the term, if there is a balloon payment, l guess your IP may make adjustments for extended period. l tried to get the IP to factor the fact that we will not have the funds to make balloon payments at the end of HP (8 months before IVA) but they refused and said we will cross that bridge when we get there. So we are maintaining the HP under my other half's name and IVA under my name and come the end of the period, we hopefully will be able to prove to the IP that HP expenses are still continueing. The other half should be able to refinance or extend the exisiting HP finance deal
