I am currently in the process of entering an IVA with my husband and we have been informed our meeting of creditors is on Friday 12th September and to ring at the time stated on the letter so the meeting can proceed. I am new to all this and I would appreciate any advice on how the meeting will progress, what the format is. Can creditors vote before the meeting and can we find out how the votes are progressing before the meeting and if there are any modifications will the IP ring to discuss before the meeting or wait until the meeting date. Another issue I have is with my car finance with ford. I have a 3 year lease which I just renewed in June to a newer model for the same payments previously paid, however I am worried if ford find out I am in IVA they will want car back. It states on the small print that if a bankruptcy petition or meeting of creditors called they are entitled to end the agreement. Are they made aware of the IVA or would they have to find out by checking insolvency register. at the end of the 3 year you can either trade in for a new model or own the car by paying the balloon payment. I have recently changed bank accounts (due to IVA) and I've changed by direct debits over and the car payment was due to come out the new bank account today but it hasn't and when I rang ford credit they said the new bank details are on the system but they can't see yet on the screen if its been rejected but when I called the bank they said the direct debit was there but it hadn't been taken yet so will have to ring ford back tomorrow to see whats happened but I am worried they already know about the proposed IVA and going to make arrangements to take the car back. Any advice in these areas would be greatly appreciated. Soo worried! Many thanks x
Hi and welcome to the forum. The meeting as such usually consist of fax/email votes and any modifications in place can be discussed with your IP on the day of the creditors meeting. Creditors who vote early can change their mind so most IP's won't tell you if the votes are in (well mine wouldn't anyway) to prevent any misleading advice given.
In respect of the car, I'm not sure but do feel other posters may know so hopefully they will comment in due course.
Good luck for the 12th and do keep posting.
IVA final payment left the bank on the 26th January 2013...looking forward to a debt free future.
Good luck with your creditors meeting on the 12th. Hopefully it will all go to plan and your creditors will see your proposal as favourable.
Re the car ... I would ring ford finance and ask the question, quoting the comment from fine detail, but would ask a hypathectical question without giving your personal details .... It might be an idea to ring from a different number so that the number cannot be traced on their systems at this stage.
Sharing from experiences of dealing with debt
There is a solution for everyone .... Just need to stay positive !
I wouldn't worry about the car finance. If your IP has agreed for you to keep the car and make the payments (i.e. it's excluded from the IVA) then Ford will not do anything unless you tell them. If you are paying on time and are up to date they wont start checking up on you! Only issue will be at the end as you are unlikely to get re-financed to pay the final instalment.
Ford Finance are normally fine but others are not. Good luck with the meeting and as the others say make sure and keep on top of the lease payments. Ford will be aware of the IVA as they will have been sent a copy so they may monitor the account more closely.
Thanks so much for your replies. Its very helpful. Going into this in the dark, not knowing what to expect. I have checked my bank today and the car payment has come out today so at least the payment has now been taken. Thank you michael. If Ford will be aware of the IVA and they normally fine for the lease to continue, do you think they will be ok when the 3 years is up to renew the lease with a newer model for the same payments like we have previously done? We have gone with your company for the IVA so its good to know someone on the forum is from the company we have chosen. Fingers crossed the meeting is a success.
Sosilly. It would be up to Ford credit how they view any refinance at the time but from our point of view we would have little issue. Some firms do allow lease/purchase agreements to be renewed while others seek the return of the vehicle unless the balloon payment is met.
Some of our clients have borrowed the balloon payment from family when the HP company refuses to extend and we then would allow this debt to be repaid at the same level as the HP agreement but I do not know if this would be an option for you.
It can also depend on what creditors say at the meeting and some will put a cap on the monthly payment either now or on renewal. This may or may not be raised at the meeting of creditors but at the worst an extension may be requested if the monthly payments are deemed excessive by creditors but you have no way of refinancing. Ultimately you need a vehicle which will last the duration of the arrangement.
Finally I am delighted you have chosen our firm and hopefully everything goes smoothly for you and I look forward to a positive outcome at the meeting.
So then, do explain how a family member can finance a car for them? That is an accommodation deal and technically is not legal. Great practice, so you have to get the relative/friend to lie to the dealer/bank and effectively commit fraud! Nice advice.
Anyone who obtains finance on a vehicle is allowed to do so if they wish - if they choose to allow someone else to use said vehicle, they are perfectly entitled to.
In no way can this be deemed fraudulent or illegal.
Last edited by Dave Bowman on Wed Sep 03, 2014 4:45 pm, edited 1 time in total.
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I work in insolvency as an IVA Drafter. I've been working in this industry for over 7 years and have seen every scenario you can imagine. I am experienced & knowledgeable in this field, so if I can offer any assistance to anyone, I'll be glad to help.
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The opinions posted in this forum are mine alone and not those of my employer (though I'm sure they'd agree with me!)
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Cybertiger, say I borrowed £1000 and bought a cheap car with it to give to my son I would, kind of, be getting car finance on behalf of my son, if you want to stretch technicalities ... not at all fraudulent.
Of course, what an 8 year old wants with his own car is another matter!
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Finance does not just mean hire purchase and could include unsecured loans from a bank or credit union for example. These funds could purchase the vehicle while the client repays the family member who borrowed the money.
My understanding of a personal loan is that, personal to the person taking the loan irrespective of what he/she wants to purchase or pay off with it. They would be liable to repay this in full to the lending house whoever that may be.
IVA final payment left the bank on the 26th January 2013...looking forward to a debt free future.
