www.iva.co.uk

I noted in one of the replies that a car up to the value of £3500 would be ok to keep. Mine is worth about £9500, and is the only family car. I travel 25,000 miles a year (through being a "mum's taxi" and through my job as a peripetetic teacher) If I swapped it for a cheaper car, it is likely I would have to change it during the course of the IVA, as the high mileage would be a big factor. Would I have grounds to justify my car? (It is a seven seater, and I have three kids who all need to have a car seat by law, and it isn't possible to get three car seats across the back of a normal 5 seater)
Or do I trade in and buy a cheaper 7 seater and hope it lasts me the five years?
(I think I would be looking at 65p in the pound return to the creditors, if this has any bearing)
Thanks
Helhan

Hi Helhan

Given your circumstances, I do not think that creditors would seek a sale of your car. My advice of the £3,000 limit was based on bankruptcy law and not IVA - and was merely made as a comparison. Under IVA proceedings, the system can be more flexible - providing your IP clearly explains the circumstances within the proposal. If the car is an issue for your creditors, you could always offer a few more monthly contributions at the end of the IVA in lieu of its value.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.
View my IVA blog at: http://melaniegiles.blogs.iva.co.uk

Thanks Melanie, your advice makes good sense. And is quite reassuring as the thought of having to organise the sale of the car, and find a new cheaper one fills me with total dread.
Are you independent? Or do you work for a larger company? I have been very interested in the advice you have been giving on the forum.
Thanks
Helhan

Helhan

I am completely independent and run my own practice with four regional offices around the country. I am glad to have been able to help you.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.
View my IVA blog at: http://melaniegiles.blogs.iva.co.uk