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Posted: Mon Mar 03, 2008 11:00 am
by lisa.r
In 2005 I brought a car on finance with payments over 5 years. Last year I was unable to pay the amount and so the company collected the car. I must add that when I bought the car I was told I would pay the interest first then for the car in which after the first 2.5 years I could give the vehicle back with no further costs. This was back in August that the vehicle went. Since then I have heard nothing untill last week when I had a collection agency phone me at work to say I owed them over £10,000 but they would accept £2500 if I could pay within 2 weeks. This is absolutely impossible and they are not willing to make any other arrangement. I am now considering an IVA as I do have other debts totalling around £20,000, I work full-time and have a young child. If I were to take an IVA would I have to move from my council property and also I have another car on finance - cheaper though - and a television - I am able to repay these as contracted but would I have to give these up if I took out an IVA as I need a vehicle to work and also my property to live in.
Posted: Mon Mar 03, 2008 11:15 am
by Oliver
Being in an IVA will not affect your council proprty at all.
Are the finance arangements on your current car and your tv both on an unsecured basis? The tv almost certainly will be but the car may or may not be a hire purchase / cnditional sale agreement (secured loan basis) which will mean that as long as the amount and need for the car is deemed reasonable, you will be able to continue to pay the agreement and thus keep the car. If these loans are based on an unsecured basis then these would have to be included in your IVA also.
Posted: Mon Mar 03, 2008 11:16 am
by Adam Davies
Hi
If you took out an IVA you would not have to move.Is your new car on HP or a pesonal loan,do check the paperwork.If on HP then you may be able to retain the vehicle and pay this outside of a possible IVA.If the car finance is a personal loan then this would be included as a debt in an IVA and you would keep the vehicle.
Do your total debts include the new car finance ?
If you are paying you contractual repayments then you may be better to stand by your guns and come to an arrangement with the new creditor,rather than look at an IVA,at a rate that you can afford,as I'm sure that they will agree to this once they realise that you can't pay the 2.5k straight away.What do you think that you could afford ?
Regards