Going into an iva

[arlad5]

I was told by DFD that I was only allowed a car upto arounf 5000 pounds, I had a car valued at 9000 ish. I sold it privately and got 8500 pounds for it. I then purchased a car for 4995 pounds. They now tell me that i must pay the differnce into the iva to set it up. And i still may have to get a cheaper car. Is there anyway to get round this as I owed my father around 3500 poounds and have paid it to him. I have not yet signed anything.

[MelanieGiles]

Hi arlad5

I very rarely ever advise clients to sell their cars and buy cheaper ones. That is the right of the creditors and not the IP! But as you are now holding surplus money, this will need to be disclosed on your statement of affairs as cash in hand, and you must not use it to pay off your father as this would represent a preference.

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