www.iva.co.uk

I am in a DMP with my husband but with only paying £100 per month with Payplan its going to take 35+ years to pay off so I enquired about an IVA. The only problem is the car we have is on finance costing £400 per month which is in my fathers name so I have been told an IVA is impossible as the car wouldn't count and any creditors could make me stop paying my dad which I just wouln't do. Is this correct? Can anyone advise. Thanks

Hi
It is unlikely that your creditors would agree to an IVA if you have to pay your father 400 pounds a month. Your creditors may argue that this is money that they could have towards their debt.
Your debts are approx 40k ? what is your disposable income figure after you have paid for the car ?
Regards

After all my bills and shopping I have around £150 per month left. I have been told maybe bankruptcy will be best and it will take away the stress of worrying that when interest rates do go up then so do my mortgage payments and I also have a secured loan and a 3rd charge on my property that Natwest got last year.

Hi, how long do you have left on the car payments to your dad? If it's not too long, you could always propose an IVA when these have finished. Discuss your options with a pro...www.iva.com is a good place to start. It lists a number of IVA companies with customer reviews. IPs vary wildly in their attitude to car finance so speak to 2 or 3.

If you go bankrupt then you may well be expected to sell the car anyway and get a cheap runaround.

It might be as well to continue with the DMP until the car is paid for. This will then free up additional money to pay towards an IVA.

Do take expert advice though.

As the car finance is in your father's name, legally it belongs to him, it does not matter who is the registered keeper at DVLA, in bankruptcy or an IVA, you would not be permitted to pay this for him, he would have to take over the payments himself as he is legally responsible for this debt, lesson to us all: do not take credit out in your name for someone else

Who owns the vehicle, how much is it worth and when are the finance payment due to conclude?