Balloon payment on car paid off by my dad but I will continue to pay my dad the money back until it's paid off how can I prove this to iva company as it's a loan from a family member
You would need approval to take any new credit, even from your dad. People have posted before that their IP has expected their relatives to wait until completion for repayment to start. What did your proposal say about the balloon payment? It should have been covered then.
Was it agreed at the outset that your dad would pay the balloon payment and tgat you would continue with your monthly car payment but to your dad instead ? You could get a letter written by your dad simply stating the facts.
If permission was not sought for the above your IP may stipulate your dad may have to wait until the end of your IVA
Sharing from experiences of dealing with debt
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Hi Jo I agree with Relieved33 and luluj above. To answer your question about proof the best way is to pay by cheque or bank transfer/dd/so and a copy of yours or his bank statements should clarify this. Failing which maybe a postal order can help but this may be academic if it was not dealt with as part of your IVA proposal.
Hi in my proposal it states I have the balloon payment but nothing was agreed at the time how it was going to be paid my advisor did not ask for this information either. I can't re finance because of iva so how else could I pay balloon payment as obviously don't have that amount of Money to pay out right
I agree it is common sense by the IP here but my experience with them for the last 3 1/2 years they have none I send paperwork in and they say it's received then out of the blue a year later I get told I am in breach of my iva when I question why because they havnt received the paperwork when a phone them and they look in to "oh yes we have the paperwork" ignore the in breach of iva paperwork. I don't know where I am with them I questioned about the balloon payment when I phoned them yes they are aware I have the balloon payment but we need proof you are still paying it off monthly. Sorry for the rant it is just annoying me role on November 2016 when it's completed
Hi Jo I can understand the frustration. I would recommend if you are having issues with the IP that you ensure all your correspondance is done, or backed up, in writing and you keep a copy. Ask them about the balloon payment position in writing. The IP should have discretion to adjust your contributions by 15% so this may cover the additional repayments to your Dad without the need of calling a variation meeting for the creditors to consider. I don't know the circumstances of the IVA or your Dad but as you mentioned he has funds to pay off the balloon payment does he perhaps have funds he could offer to make a final settlement offer and bring your IVA to an end early?
If he is clearing the balloon by cheque get a photocopy of the cheque and forward it to your IP with the confirmation the debt has been cleared. However make sure you have the IP approval beforehand. This is not uncommon and easily dealt with.
