DO I have to go without a vehicle?

[tony.c]

i am entering into the early stages of iva. I have 70k of debt. I have an expensive car with 10680 still left on the hire purchase. The part exchange on the vehicle is about 7600, leaving me with a 3000approx shortfall. I want to scale down my vehicle, but iva says i need to stay with the same company (black horse) for my car credit. I have lots of cars on a list in a more appropriate price range and running costs etc, but how do i get black horse to except credit on a new lower cost vehicle? They have declined my first attempt. I can obtain car credit for less than i am currently paying, but this is like setting up a new credit agreement. DO I have to go without a vehicle? My current car (mercedes) is likely to be the thorn in the foot of the agreement.??? Help!!

[mish1953]

Tony .
Im not sure how IVA and HP works, it might be wise to check the small print in your HP contract, Im BR and different rules apply.

Slainge
Mish

[Adam Davies]

Hi
I,m not so sure that you will be fine with your car.
As the car is worth less than you owe by 3k you will have problems in down sizing.
Have a good look at your HP agreement because if you have paid a certain amount[from memory 50%] you can hand the car back.
The alternatives are to see if your creditors will agree for you to continue paying the HP or to surrender the car and the shortfall will form part of your IVA.
Regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[MelanieGiles]

How much are the monthly HP payments? So long as the car is essential for you to travel to and from work, and your IP properly justifies the expenditure, there should not be a problem. To put this into perspective, I have recently had a case accepted with two expensive Range Rover cars - both on HP - being allowed by creditors, so I would personally do nothing and wait and see what your creditors say at the 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

[Adam Davies]

Hi
Thats amazing Mel,the allowances and interpretation regarding insolvency must be a mine field and I guess there is never a difinitive yes or no until it,s been proposed to the creditors.
Regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[MelanieGiles]

Andy

It's all about presentation - if someone needs a car for a particular reason and that can be properly justified, then there is usually little problem in convincing the creditors.

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