My fiance and i have 2 credit cards each, overdrafts and a personal loan that we want to cover in an IVA. We also have a car with finance on. We obviously need to keep our car. How does this work with an IVA? Thanks
Hi Katherine and welcome.
One of the experts will help if you give more detail and they'll be along shortly I'm sure.
From a personal perspective it will depend on what the monthly payments are and if an IVA is right for you whether or not you can afford those payments.
You'll know more after some good advice, but don't worry - I couldn't afford the car I had pre IVA, but there are companies who will help to get you an affordable, reliable car. I went from a very expensice Mercedes SLK to a superb, brand new Peugot 207cc on a lease deal.
Either way there will be options so wait for the experts and the other forum members who have very valuable experience and advice to give.
Best wishes,
Chardonnay
I believe that you must check whether the car is on hire purchase or whether its an unsecured loan that you have,check your paperwork as it makes a difference as to how you would proceed.
Discharged today the 8th feb 2012. View is much brighter now.
Continuing to rebuild our credit worthiness.
Hello I have only 20 months to run on iva I had an exisiting pcp arrangement with Renault and I was able to keep my car £249.00 per month. Also I was able to re finance the balloon payment again with Renault. After credit checking me they declined my application but after seeing all my IVA papers and the allowance in my IVA for car finance we were able to agree to refinace the balance over 18 months so I actually finish paying off car in December !! Have never managed to pay for a car out right! I will be putting the £240 back into the iva for the remaining 17 months! It will seem daunting but just take it step by step.
On the slow safe road to success. Personal thanks to Melanie Giles Kallis Skippy Elv5 and all the other wonderful forum friends.
I have a car which I took out a loan for recently. I thought I was being clever to get a newer car before I entered the iva so I didnt incurr unexpected maintenance etc during the term of the iva. My wife needs and uses this car for her work (Im in the iva alone, but obviously her earnings are taken into account in the IVA)
However, I am being told I will probably have to sell the car and 'tip the money' into the iva pot - im not really that surprised I guess, but the issue is, that I part exchanged my wifes car in the process, and if I have to sell it, then she wont be able to work (she works 36 miles from our home) and we will be much worse off financially.
It is a decent car, valued at around £11k - £12k, but in my mind thats not the problem. The issue is that if I sell the car - how will I fund another - even one half the value? i cant get a loan or HP obviously, so Im feeling a bit stuffed.
You need to discuss this with your proposed IP prior to the proposals being presented. An allowance for a more modest car of say £5k to £6k would not be unreasonable.
boy - this is so unbelieveably complicated. i have a pesoanal lease car, funded by my work which is in effect an HP agreement, so im ok to keep this during the iva. the lease is due to complete in april next year. my wife drives our family car, which as i mentioned earlier is a good car with a significant value.
i understand we will have to sell it.
i am looking to take a company car instead of the lease car as the lease car is four years old and now falls outside my company car scheme rules. the company car works out about the same, but covers me against any nasty maintenance surprises etc.
Im thinking of keeping the personal lease car for my wife to drive because i cant see how we will secure funding to buy another car of a lower value once we sell hers - im sure everyone is lost by now - im getting that way!
so I have several questions:
Will I be allowed to keep the lease car if I already get a company car?
How the hell do I sell the car in the current climate?
what if the car sale doesnt generate the level of cash equivalent to the level of its outstanding loan?
How do I get the money from the car sale into the iva?
kabby3 wrote:
Hello I have only 20 months to run on iva I had an exisiting pcp arrangement with Renault and I was able to keep my car £249.00 per month. Also I was able to re finance the balloon payment again with Renault. After credit checking me they declined my application but after seeing all my IVA papers and the allowance in my IVA for car finance we were able to agree to refinace the balance over 18 months so I actually finish paying off car in December !! Have never managed to pay for a car out right! I will be putting the £240 back into the iva for the remaining 17 months! It will seem daunting but just take it step by step.
Hi! - That good for me to read. I am also in a PCP, with Nissan though. I have been worrying a little about what will happen re the balloon payment as obviously I will fail a credit check.
My IP worked out how much I would repay over 18 months and this is all factored into the paperwork and arrangement.
Hopefully as I have made every payment and can show them the paperwork and allowance for it I will be fine too!
Piston Broke - if the "family car" is in your wife's name and she isn't in an IVA, I don't see why she can't keep it.Especially if she needs it to work.
My hubby's in an IVA, I'm not, but obviously my income is taken into account to make sure I pay my way towards household expenses. However, I have my own car and other outgoings which are nothing to do with the IVA.
We've also had HUGE problems with hubby's car, but I won't bore you all again [:D]
Hubby and I are both in IVA's and our family car was worth about £8,500 at the time. There was never any suggestion that we sold it, and if there had have been, I had my arguments ready.
It will also have to last you and your wife for the next five years, so you need a reliable car.
As Julie says, if it's in your wifes name, and she needs it for work, I don't see why you have to sell 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
Hello piston broke I also had the worries you had but if you talk to to the finance house who your pcp is with and let them know you situation, they will have had all your payments and also on your IVA there is a monthly allowance aand they will see that you can afford the payments and that it is agreed through the cours that you cab do this !! Go to your exisiting loan company.
I was with Renault Financial Services who were really helpful, they did not judge my situation and did there very best to get the finance through!! Good luck xx
[:o)]
regards
Karen
On the slow safe road to success. Personal thanks to Melanie Giles Kallis Skippy Elv5 and all the other wonderful forum friends.
I will as you say go to the lease company for the family car and ask if the balloon can be refinanced under the current scheme, which means that I need to keep this level of expenditure into the IVA calculations (I think my IP is hoping i might be able tip this monthly outgoing into the iva pot)
has anyone managed to renegotiate with a lease company to finance a balloon payment on a car whilst in an iva?
