www.iva.co.uk

The car that we paid all the money out for in November...with the idea that by doing so we could keep it running for the next 3 years. Well, that car has died and all that money has been wasted. Basically timing belt and gear box have packed up and our garage are advisjng that the best/only thing to do is to scrap it, as it's really not worth spending that money on it. Which gives us a problem...my wife works shifts at a hopsital heso she needs a car, now. I've rung GT and the options don't look great. Here's what we think along with GT's answers. Obviously we want to be upfront and make sure that we don't breach our agreement.
1) Mother in law can lend us up to 2k, which will get us a runaround, GT say we can have another payment break for as long as we need to pay her back. My worry here is that for that money things could be wrong with whatever we buy and we could be back in the same position in a few months time. She has to have a reliable car.
2) Mother in law could take out a 3 yr lease for a small new car, which we then pay. Cost involved would be £100 per month and we would get a reliable car. GT say this would require a variation meeting which creditors would most likely reject as the 1st option would be preferable to them. They also say that a variation to reduce our payments by up to 15% is not an option as it's not the last resort.

So, it looks like we have to buy a banger and take a payment break, which looks like a bit of a gamble to me. Unless anybody has a better idea.
It doesnt help that whatever decision we make has to be a quick one.

Could you fund the £100 per month, and maintain payments into the IVA at the contractual level or within the 15% discretion your IP probably has?

GT say the 15% variation doesn't apply as it's not the result of a loss of income and there is an alternative , is a payment break and buy a runaround.

I don't think we can fund £100 per month without the variation although if it comes to it, we might have to try to.

It might not be as a result of loss of income -- but could well lead to it !!! Bit short sighted of GT.

Whilst the 15% reduction is discretionary on the part of the IP, I don't share the view that it can only be applied in the event of a loss or reduction in income.

If GT feel they cannot grant permission you should request a variation and see what creditors say.

Thanks for the comments all. I was working away this weekend so I had to leave it with my wife and mum in law to sort.

They've managed to find an 06 plate car at a decent price, sub 2k anyway, so we'll apply for the payment break for 4 months to pay mum in law back for the loan.

The car seems decent but it's always a gamble when you're buying in that age and price range and my wife clearly needs a reliable car. Hopefully we'll find that it does the job for the next 3 years or so.

I am convinced that the leasing option would have been better for everybody in the long run as she'd have had a new car, no repair issues, insurance would have been free for at least 1 year. But I suppose GT are protecting the payments to creditors and there is a voice in my head that says credit is credit, even if its not in our own name.

The thing that eats me up is all that money spent just before Christmas...down the drain and an extra 3 months on the IVA as a result. Grrrrrr!!!!

pleased do a hpi check, before buying. if you are near st noets I would be happy to look it over for you.

Thanks Kev but I'm up in Yorkshire.
Nice offer though and I do appreciate it.