www.iva.co.uk

Hi, I am after some advice.

I have just passed 3 years in my IVA, my previous car HP was included and has now finished, my payments have increased as per the initial terms.
In the initial terms, a 2 month payment break was built in to cover the balloon payment at the end.

However as I need a car for work, my current car has issues that out way the cost of repair, it is 11 years old and covered 150,000 miles. I have no other way to get to where I work and regularly have meetings in different places around the UK.

I contacted my IVA company who said I could take the remaining payment break of 4 months which is approximately £1200. Which is not enough to cover a Diesel replacement which I need due to the MPG I currently get is costed by month. Would like it to last until the end of my IVA plus the year. My current car would be worth approx. £700.

I have read some people use moneybarn to finance a car, but was wondering if that is something that can be included in an IVA.

If this was something, I guess as I would have to reduce my IVA payments below the amount of the original terms I would then require a creditor meeting and what if they say no, do I go back to the current IVA terms or would my IVA just fail.

My current IVA is £310 per month, which is approx. 40p/£, if I was to reduce my payments to £130, this would be approx. 22p/£, would this be acceptable to creditors, I understand only creditors can decide this, but wondered if it was in a normal accepted range.

Thank you in advance for any advice you can give.

Hi and welcome,

You may find it difficult to finance a new car unless you have a family member who can help you out.

You could try Moneybarn but they do charge extortionate interest rates.

Hi you would need to talk this through with your IP. If they were to allow you take out finance with Moneybarn, one condition may be that you would extend your IVA to ensure that the minimum dividend (if one was stipulated in your agreement) was reached. The only one who can advise I am afraid is your IP who will know the full terms of your IVA... Good luck Oh my understanding is, that if a rejection is made at a variation meeting, then it just defaults back to the original terms. It may be worth mentioning to you IP that without a car you have no job and without a job you cannot pay your IVA.

Thank you both for the advice, I will make contact during the week.

I don't like the idea of taking credit in an IVA, but do need a car that will be reliable.

Torn on what's best to do.

It is likely that creditors would allow the reduction but they will probably ask for an extra year to improve the dividend. I do agree that borrowing from family would be cheaper than MoneyBarn but this may not be possible,

Thank you Michael,

I have sent an email and asked if this would be allowed, I have added I am more than happy to extend to 6 years to pay as much as possible to my creditors.

I will let you all know how I get on.

I only wish I had found this forum 3 years ago, the help has been great and much appreciated.

Hi there and welcome. Lovely to hear the forum has helped you and you've found us now so any questions just ask.

Hoping your IP sees the importance of a reliable car. Be nice if you let us know.

Just to let you know, all going OK,

I have a variation meeting for the start of January.
The variation includes an additional 2 months payment break so I can add a deposit to lower the monthly payments and extend to 6 years.

Midland car credit accepted me at a better rate than everyone else, with no deposit, lets hope they re-accept me when it comes to the time.

Sounds good and nice to see your IP is helping.

Good luck for the variation.

Fingers crossed!!

Just an update, I got a car, finance company were great, IVA IP was amazing and so helpful.

and as my job is currently 2500 miles per month, I'm very glad to be in a low mileage car.

It's a 5 year old Meriva, but it's new to me and is great!

That is great news! Hope it goes on for years and years!!

Good news, well done. Nice to hear some positive comments about an IP for a change!