www.iva.co.uk

Although I am quite unwell at the moment and as a result am feeling very emotional and vulnerable, I am also very scared. We are in the process of setting up an IVA and have got to the point where our proposal has been agreed by auditors and we were going to have a telephone meeting on Monday to discuss the next step. Then we received three calls from our IP advisor, wanting details of our Motability car. I am registered disabled, live in the back of beyond and cannot use public transport, even if it was readily available. We were told that Motability Operations will have to be told that we are applying for an IVA. Why? What possible reason could there be for notifying them? I am also quite deaf and could not really understand the explanation from my IP advisor. I am now very frightened. Will Motability take our car back? And if they need to know, even though the payments for the car are taken at source from my DLA, does this mean that our Landlord is going to be notified, as well, since although the rent is and always has been paid on time, he is an interested party? Our IP advisor has known from the outset about our Motability car, so why now must we send copies of the agreement, which we entered into a year ago? I am having enough trouble dealing with the shame of being in this situation in the first place, without all of this. Please help me, someone.

Hi Carole, try not to panic, your IVA has been drafted and I am sure it will be accepted soon and you can get on with your life. There should be no need to inform anyone of your IVA, other than any creditors. So your landlord will not be informed.

As for the shame, please don't worry about that, there are millions of people in debt in the UK, you should be applauded for facing up to this and trying to do something about it.

Not sure about the mobility vehicle, is it on a HP or credit agreement.

It's on a 3 year contract. I am paid Disability Living Allowance, most of which is paid straight to Motability Operations, who actually own the car, pay the insurance, road tax and maintenance. At the end of three years, the car goes back and you take out a further 3 year contract.

The thing that scares me is that Motability Operations are not one of our creditors and the car cannot be classed as an assett, as we don't own it. So why involve them at all?

hey carole
i am afraid that im not gonna pretend to know the answer and look clever as i dont.
but i will say youve got to stop worrying and dont be afraid.
i am about where you are in my iva and youve got to think of it as a positive towards sorting your problems out. im sure you need your car and can prove so. ill guess youll be fine.

Hi Carole, someone on this forum will be able to answer your concerns, the main thing is you like many others on here have started the ball rolling to give ourselves a brighter debt free future.

I wish you the very best and good luck...BP

Where does your income come from Carole??
Do you have any property that has equity in it?

The car thing may be an issue if creditors want you to buy a cheap runaround and use your DLA to fund payments into the IVA. I would imagine that a lot of insolvency practitioners wouldnt expect you to do this so my advice is to make contact with another insolvency firm for a 2nd opinion.

Given that you have issues eith your hearing it may be adviseable to have someone else present when you are talking with your insolvency people,a friend or family member perhaps using the louderspeaker on a phone so that nothing is missed or misheard(perhaps even a face to face meeting if thats possible).

What company are you using?

Paul

I'm sure it's just par for the course, i understand you are, but try not to be scared and worried, as for the shame, well leave that feeling behind, you are obviously taking steps in handling your debts and that you should feel very proud of.

My husband is always here, so that speaking to the IP advisor is not usually a problem. As to income, we are both pensioners - me on State Pension and my husband on a small private pension (he is not yet 65 and was retired early on medical grounds) As for 'buying a cheap runaround'- for a start, where would we get the money from? Also, with a Motability car, car tax, insurance and maitenance are all paid for, so it would be silly imvho to go down that route. The cost of insuring and maintaining a cheap runaround would by far exceed the amount we pay from my DLA, I would have thought. The whole point of a Motability car is that you have peace of mind and a reliable car to get you about, when you need it. Would we have that with an old banger? I don't think so. So, my question still stands - as Motability are not one of our creditors, why must they be informed? We are using CCCs, btw. We do not own our house, but rent it, so equity is not an issue.

Hi Carole and welcome to the forum.

I don't know why Motability would need to be informed, hopefully Melanie or one of the other experts will be able to advise.

I'm sure there have been people on here with Motability cars before and I don't remember anyone losing their car. It might be worth you searching on the forum for Motability and seeing what's happened with other people.

If you dont own a house my advice would be to investigate bankruptcy. It doesnt have the same stigma that is had years ago and will be the fastest way to sort out your debts.
I agree with what you said about insurance etc etc if you had to get a banger instead of a motability car(my Dad just recently got a mazda 323 Takara with no deposit so I am aware of how the system operates).

Paul

For all the reasons you mentioned you won't lose a motability car, you wouldn't lose it in bankruptcy or a DRO. DLA/motability is a needs based benefit.

You need to describe the car though and prove it is motability, in any legal matter items need to be specifically excluded - you can't just leave them out.

Trust your IP. Read your proposal and make sure you understand it - its your proposal after all - not the IP's and not the creditor's.

Given that Motobility always own the vehicle, and that they are not a creditor of yours, I cannot see why your IP would need to notify them. Can you find out why they feel this has to be done?

I've got to say that I agree with Mel and that we would not feel the need to inform them under the circumstances described either.

Regards.

Thank you all so much for your replies. We will send of the documentation they require, but will keep plugging to try and find out why they seem to think it necessary to notify Motability. As I said before, I am having enough difficulty in getting my head round the situation we have got ourselves in, without the world and his wife being told of it, as well!

We have a motability car and although hubby got his DLA after we had started the IVA, we did inform Payplan and they were quite happy for us to carry on with this.

Personally, I would give another company a ring, it's not too late to change. Either use one of the professionals who post on here such as Melanie and Size5 who come highly recommended, or visit www.iva.com for a list of companies and reviews. Give one or two a ring and you will get some free and impartial advice.

Motability shouldn't need to be informed.