www.iva.co.uk

Please can someone help, I am currently in an IVA and my family has out grown our current car and we urgently need a larger one.
I did not want to enter into a HP/LH agreement because of the IVA. I have a friend who is willing to loan me the money I need with a personal agreement, but I am concerned about my IVA. I know its cheeky, but I was going to have the monies paid in/out of my parents accounts and have them sign & pay for the car in cash having them as the named owner. My question is would my IVA know if I use my car as p/Exchange and use the new car as a named driver? and paying the insurance/tax...etc...please help!

You just need to explain to your IP what you are proposing and it should be fine. There is no need for cloak and dagger as you can obtain credit with the consent of the IP. If this new agreement does not impact adversely on your IVA I see no reason for the IP to reject your request.

Thanks Michael, But I am not so sure they will agree

I have just finished a previous agreement of £70per month, the new motor would be £220per month although it is a smaller engine and cheaper tax.

I pretty sure that they would refuse, hence the going around the houses.

Sorry I meant - I'm sure they will not agree....!

Hi, I'd imagine you can't enter into a HP agreement anyway. I can't borrow more than £500 with the T&Cs on my IVA and I can't think of anyone that would let me have HP anyway, lol.

Are you saying that your car costs are going to increase from £70pm to £220pm? If so, it doesn't matter who's name the car is in, you'll still have to either soak up that increase or put a case to your IP as to why your payments should reduce for you to be able to afford the car.

Check on your agreement also that now you've finished paying the £70pm, they are not expecting your payments into the IVA to increase by the same.

If your current car is listed as an asset, you'll have to let the IP know if you liquidate that and therefore you'll have to tell them where the asset or the liquidity from that asset has gone - or pay them for it. IP experts, that sound right?

Hi Fishpig - welcome to the forum

It is perfectly fine for these kinds of situations to arise mid IVA but you need to be honest with your IP about what your plans are as it involves borrowing and a potential change in your expenditure. There should be no problem so always best to be honest and upfront.

What a lovely friend you have! Hope your IVA is going well.

Thank you for all your reply's I shall contact my IVA

Let us know how you get on....and happy car shopping if all goes well!!

One thing you should also consider depending on how you proceed; using the car as a 'named driver', assuming you mean with the insurance in someone else's name, if you are actually the main driver of the car could result in your insurance being cancelled and fraud charges if you get found out (i.e. via an accident). It's called 'fronting' and the insurance companies really don't like it.

If you're not using the term 'named driver' to refer to this situation you may not have to worry - but if your name is not on the registration document and you're not the named owner, taking insurance out in your name without declaring those facts would also be a problem.

The person on the V5 is not always the "owner", but is the registered "keeper", so it matters not who's name is there for the purposes of the IVA. Insurance wise you will need to be the registered keeper to take the insurance in your name.

font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by Foggy

The person on the V5 is not always the "owner", but is the registered "keeper", so it matters not who's name is there for the purposes of the IVA. Insurance wise you will need to be the registered keeper to take the insurance in your name.

Like I said [:)]

IVA have confirmed that as long as I work within my bounderies and do not affect the payment to the IVA then I am free to do what I want without breaking any rules.

Thank you for all your help