Hi, this is getting more stressful than before the iva (payplan) now. My car is going in the garage today for the 2nd time in 5 months (suspected HGF) i travel around schools for my job and is paramount i have a car. Im ringing payplan to will they let me miss a payment? We are at present paying an extra 50 mth for the last repair.
A payment break may be the best option so hopefully Payplan can sort this out for you. However, if the vehicle is such a problem you may need to look at the long term viability as will it last five years?
Hi, Darcus. Only PayPlan can answer that but when I was with PayPlan I leased a car through my job and they were OK with it. It wasn't salary sacrifice but the principle is the same. Remember to get any agreement like this in writing from them.
Again, only PayPlan can tell you but in my case they said as long as my IVA payment was to stay the same, it would be OK. My allowance for running my own car was also removed but even though the lease car cost more, it actually worked out cheaper in the long run than what I was paying to maintain my own car.
Thanks so u ended up being able to include in the iva, sorry to sound dumb but your own car costs were removed then the lease cost was added in, is this correct
I think, as long as the IVA payment remains unaffected, it is generally agreeable. In the end it saves a lot of car related hassle as the IVA progresses.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Your payments can usually be reduced by up to 15% by the IP without any extension or problem so if this is enough to cover the lease payments hopefully Payplan will agree.
Being as this is taken before tax, would i have to ask payplan or could i just go ahead anyhow? If i did and they questioned it would my iva fail? Thanks all for your kind advice
You would need to ask Payplan and provide the paperwork. The savings made may mean the IVA is not affected at all and Payplan would likely have no problem but they would need to see what you wish to do.
Your wage slips are usually sent to your IP each year so if you go ahead without informing Payplan this will show at review and could cause unnecessary problems.
If you just go ahead you will be in breach of the arrangement. I used to work for a similar company to payplan and there is no chance whatsoever the IP will allow a lease car if it results in reduced payments, if they are anything like ours was. You will need to make cut backs in other areas of the budget to show you can afford the lease car without reducing your payments. They will not even allow the 15% reduction for something like this. The 15% reduction is for non-voluntary drops in income or increases in expenses - like mortgage rates increasing or being made redundant and having to take a lower paid job. Unfortunately your creditors will view a car - even a lease car - as a luxury because it is not something every single person has or needs.
Lou3, fortunately we were nit with a company like the one you worked for! Cleardebt allowed us the 15% reduction to lease a car. They took the logical view that no transport meant no job in hubby's case which would mean reduced money from less well paid job. I have read nunerous stories on here where people have had the reduction and leased a car.
As I have said many times, thank heavens I found the forum before we selected an IP!!
