Hello,
Im currently 7months in on an IVA. I use my car to commute 1 hr to work everyday. Unfortunately my car is becoming more and more un-reliable and i really need to replace it with something more reliable and economical. Is there any chance i can get a small loan or lease a newer car?
Your advice would be greatly appreciated.
Thanking you in advance
Lloyd
There are some companies that will provide vehicles for people in IVAs. However, the costs can be high and may impact on the affordability of the IVA. It may be better to get a short payment holiday to save up enough for a car good enough to last the reaminder of your IVA. You should contact your IP for some more advice.
Unfortunately Im already on a payment holiday as i have been off work Ill. So im currently at the max threshold to which they allow. When i phone my IP they don't seem very willing to help.
The trouble is they don't seem to understand that my car is essential for me to get to work. and have a car that is 10 years old and that struggles to achieve 30 MPG. with rises fuel and tax costs im struggling to manage.
It may require a variation and extension to allow you to get a new car. Clearly a vehicle is essential for work or the IVA will fail so the IP will have to advise you on what to do and if necessary seek sanction from the creditors.
Last edited by Michael Peoples on Fri Apr 16, 2010 12:48 pm, edited 1 time in total.
Thanks for your prompt replies.
So I should contact my IP, perhaps with figures relating to my circumstances ?
I already have a 1 month extension on my IVA.
I really want to work along side with my IVA as i don't see bankruptcy a viable option with a debt of only £16K
There is no point in struggling on if the IVA is in serious trouble. Certainly speak to the IP and do the figures. There may be savings to be had from fuel efficiency, car maintenance or insurance which would reduce the impact on your IVA payments. It may be possible to reduce those payments by 15% without approval of the creditors which may be enough to leave you able to buy a vehicle.
If you have a trusted friend or relative who could take a loan out in their name at normal rates over a term of five years or so, the repayments may be achievable within the budget of your IVA and taking into account the savings described above.
These are all options and hopefully your IP will be able to recommend which is best.
