Unsure what to do?

[krailton]

Hi
i just wanted a bit of advice please.
>we have ivas stated back in sep 2007 and in our payments we have been
>allowed to carry on paying for our cars and when the finance finishes
>in 2 years they will have the money for paying the ivas.
>i have been allowed £184 for another 2 years but my finance company
>want a lump sum in march to pay off the car £3700 or i have to return the car which i did not
>realise i thought it was for 5 years, but instead 3 years finishing in
>march with a balloon payment i cannot afford. i will have no car
>whats the chance i can keep thats extra money to help towards another
>car or will they find out. i desperatly need a car for work and taking
>my son to school, as we live with no bus service where we are, can anyone advise what to do please?
>thank you
>karen
>




karen railton

[MelanieGiles]

I assume that you have a balloon payment on the car - and wonder why this was not picked up by either you or your IP at the time the proposals were being presented. You must discuss the implications of this with your IP, who may need to propose a variation of terms to your creditors, in the event that you cannot afford he uplift.

Did you provide your IP with a copy of the HP agreement at the time your proposals were being prepared, as a matter of interest?

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[krailton]

Sorry yes i did provide a copy to payplan, and they said i would have to find the money for the balloon payment, but still have left me with £184 a month till march 2010, then it goes into the iva.
I cannot afford the balloon payment, but need somehow to get a car.
what does "may need to propose a variation of terms to your creditors", not sure what this means.
so i cannot keep the £184 and use it against getting another car?
sorry for all the questions but a bit unsure.
thank you

karen railton

[MelanieGiles]

Well that advice was really helpful wasn't it!

Where on earth did they think that you were going to find the extra money from?

A variation means that you put forward a counter offer to creditors based upon your current circumstances at a newly convened creditors meeting, suggesting that you keep the £184 and either refinance the balloon payment or use it to fund the purchase of another car.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[krailton]

Thank you for your help

karen railton