www.iva.co.uk

Hi there, We are currently getting our paperwork together in order to go into an IVA but come December our car lease agreement ends with a balloon payment of £3500. I have spoken to the finance company asking if they would consider extending this agreement until the full payment has been made and they say its either pay this now or they will reclaim the car and then charge us the difference if it doesnt make the loan amount!!!

We are in the unfortunate position that family may be able to loan the money short term but would require monthly payments straight away which I believe cannot be done via an IVA (is this correct?), to make it worse we need this car (or a car) or else the OH cannot work which means we cant do a IVA.

So my question is has anyone been in this situation and if so how did you solve it, are there companies out there that we could use for another car (that dont charge the earth). Any help/Advice would be great.

You could argue that the payments to your family are effectively car rental. So long as this appropriately disclosed within the proposal and creditors are aware of this arrangement, it would seem the most practical solution to me.

The only company I know of for car leasing to people in IVAs is Duncton Leasing - they could be worth a try, and if not you could revert to the above solution.

Hi, it is possible to include family loans in an IVA. I think the only problem would be that they receive a dividend along with the other creditors and cannot be preferenced re a shorter term of repayment or receiving full repayment. If you can, you could look at trading in your car for a new HP/ lease agreement before the IVA starts as you can claim an allowance for this.

That is not what I am suggesting. If the balloon payment is to be paid off by family members, they then derive a beneficial interest in the vehicle for which they can be legitimately paid for via monthly rental instalments.

Oops...a combination of slow typing and watching tv meant I hadn't seen your post Mel.

I was like that earlier when talking to a client whilst ogling Gavin Henson on 71 degrees north. I kept forgetting what I wanted to say!!