I have a car on HP and a balloon payment is due at the end of the year. I won't be able to make it so what normally happens? I need my car for work
Jazz
Hi
You can ask your finance company to finance the balloon payment over the remaining term of your IVA, hopefully payments will be the same or less than you are paying now. Make sure that your IP is aware of the balloon payment and that you will be trying to refinance it
Regards
I am wondering why the balloon payment issue was not addressed within Jazz's IVA proposal as it must have been known at the time that this would trigger during the IVA.
Thanks Melanie. They are aware of it, just no-one advised me how to deal with it. I didn't realise that lenders would entertain extending out the agreement. I suppose I have to advise them of my circumstances? What if they decline? Thanks
Jazz
Then you will need to return the car and find a replacement - which is why it is a shame this was not envisaged when the IVA was taken out. How did you expect this to get sorted as a matter of interest?
I would have got them to speak to the finance company prior to the IVA to see if they would be prepared to finance the final payment. If not, then I would ask my clients to confirm how they would intend to deal with this. If the car is essential, often family members will step in to loan the money required, and then your payments can be used to repay that loan - legitimately throughout the IVA. Much better dealt with when there is a plan thought through in advance.
Melanie, all I can say is I wish I'd discovered this site earlier, I would have opted to go with you! My iva wasn't straightforward but this issue has just been left hanging. I'm not impressed!
Jazz
I can understand that Jazz, but I am sure that you will find a solution to the problem, and as your IP may have also missed this they ought to be helping you to resolve the matter sensibly.
Jazz I had my balloon refinanced in my IVA by Renault Finance they initially chucked it out but after having a good look at my proposal and they amount that had been allocated for car finance they took it on!! the rate was a bit higher but they didnt want a three year old car back and I had paid on the nose every month. you might also get your IP to contact company or write a letter advising of the situation and that they agree with the balloon being finaced. many people on here have had car refinanced also there is a company called Duncton that lend money to people in IVA for cars the rate is a bit high but it might be another solution if the first one does not work out xxx dont panic lovely xxx use the forum for help xxx
On the slow safe road to success. Personal thanks to Melanie Giles Kallis Skippy Elv5 and all the other wonderful forum friends.
When your IVA was set up you would have been given an allowance within your expenditure to enable you to meet the HP repayments on your car.
My suggestion would be to try and refinance the amount outstanding on the agreement (the balloon payment) and continue to use this allowance to meet the repayments until the car is paid off in full. Although your credit would have been effect by the IVA your existing finance provide may be prepared to do this for you as they can see you have maintained the agreement satisfactory.
Alternatively you could hand the car back and use the allowance to save for a car which you can buy out right although this will mean you may be car less for a few months whilst you save.
I would also recommend that you ensure you keep your IP informed about what you plan to do and confirm this is within the terms of your IVA.
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