Myself & my husband are currently half way through our IVA agreement with no missed payments. As written into our original agreement a balloon payments of £4515 is req'd for our vehicle. This vehicle is needed for my husband to get to work & also for work purposes. The finance company wrote to us yesterday requesting this final payment, should we contact the finance company first ?? Could you please advise us of the best way forward. As a last resort I could ask a family member to help. Would the IVA
provider allow us to pay back a family member the same monthly payment as we are currently paying.
Any advise would be grateful. Thanks
The finance company may let you refinance the balloon amount for the same payments which you're making to them now. Usually with a balloon payment on a HP agreement, something is written into your IVA proposal stating that you will refinance. Have you checked your proposal docs?
This is something that should have been envisaged when your IVA was first proposed.
I get my clients who have similar agreements, to contact the finance company prior to the IVA commencing, to see if they are prepared to consider a refinancing of the loan. Some will provide this confirmation, and others will not. If the situation is left uncertain, provision shoulod be made within the IVA for alternative forms of financing to be taken out - such as "soft loans" from family members, or an alternative finance agreement. If you take the soft loan option, then the repayments you would need to make to your relatives should still be treatd as priority payments within the ongoing IVA.
Hi
when we started our iva in oct 2009 we had 2 cars on hp both with balloon payments. It was written into our proposal to allow us to re- finance both when they were due and continue making the monthly payments to the finance company until the cars where paid for. However, despite never missing any payments on the hp agreements ford would not allow us to re-finance with them as we were now in an IVA and we were forced to hand the car back to ford and lost a lot of money as a result.
An IVA is a long hard road but valuable lessons have been learnt along the way. Now looking forward to enjoying a debt free future!
You would just need to show any loan documents your family member had or get them to transfer the funds into your bank account. This would be more than enough evidence.
