I am 2 months into a joint ICA and we have an agreed clause to fund a car for £200 per month from April next year. I need to get rid of my current car and downgrade it. This month I have amost £5K equity in the car despite the book price being significantly less. I cant sell it for that, but a dealer will give me over the odds against a cheap used car. my parents have volunteered to give me the difference to buy a used car from this dealer and the IVA helpdesk have told me I can pay them at £200 per month.
My question is, when I hand over the papers for the car and they see I was awarded £5K for the trade-in when they thought I only had £2K equity in the car, are they going to ask for any of it back? I'm stuck at the moment and dont know what to do!!!
sorry for the long post!
Not 100% sure, but I think they will be asking for that money towards your IVA.
Hopefully one of the experts will be along with further advice.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
The worry for me is how I can give them any of the equity if it is in another car. I need a reliable car to get to work (70 mile round trip each day) and an old banger is going to cost even more to run. I'm struggling to understand the logic in the decisions being made.
I think you need to speak to your IP and inform them of the situation and see what they have to say about it.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
