www.iva.co.uk

I am just thinking ahead here and wonder whether anyone could help. I am self-employed as an Independent Funeral Officiant and a reliable car is essential to me being able to carry out my work (and thus earn an income in order to meet my IVA payments). My current vehicle is a new one on a contract hire basis. The contract runs out in two years when I will still be under my IVA conditions. To replace the vehicle I will need to enter into a credit agreement ... whether with a new contract hire agreement or personal finance agreement ... however under the IVA I cannot get credit ... and I doubt whether anyone would give me any anyway.

Would any of the experts be able to shed some light on this? Or has anyone had a similar experience?

With grateful thanks for all the good work you do here.

Debbie

As far as I am aware the credit that will be available to you IF you can get it will be limited to £500 for essentials only. Things like a new fridge, freezer, cooker etc.

I'm almost positive the creditors would insist that you get a cheaper car to reduce the impact on the IVA payments. You may well be able to take a payment break and have those months added to the end of the IVA to enable to to raise the money. You would need to discuss this with your IP though as they may be able to come up with another option.

Kind Regards.

Lee

Hi Debbie

You should contact your IP to discuss this issue. They will know the specific terms and conditions of your IVA. You will probably need their permission to obtain further credit, so it may still be possible. This is something that should have been considered when your IVA proposal was drafted. I would imagine that your current contract hire company may be willing to renew or replace your current vehicle on similar terms, you may need to review the small print of your agreement or discuss this with them. But most of all, speak to your IP to see what your options are. As Lee says, the main thing your IP and creditors will be concerned about is the impact on your ability to pay your monthly contributions.

Hope this helps



AccumaGroup - A large insolvency practitioner service based in Manchester.
www.accumagroup.com

Thank you both for your thoughts ... it is really appreciated.

Debbie