IS THIS ALLOWED?

[BECKY]

Anyone who has read my posts knows the problems i'm having over my iva at the moment. Well i have a plan but need to check its acceptable. At the moment I have a car on finance at £70 a month with this being paid into my iva when the finance finishes on 2009. I plan to sell this and use the money I get to pay off the finance owed and then give the remainder to my mum who will then lease me a car through her work using the balance of my car sale. This will then free up the £70 a month to go into my iva now rather than in 2009. Is this allowed or will they expect the £70 a month and all the money from my car sale? I need a car for work so being without one is not viable for me.

[ray_a]

Hi Becky

When I was setting up our IVA I mentioned that I would need to update my car from time to time and my Supervisor told me that car finance is generaaly acceptable as longing as he is aware of it.

It might be a good idea to see whether you can do the same.

[ivoriva]

How are you financing the car? If its Hire Purchase, wont you have to settle the HP agreement before the car can be sold?

[BECKY]

no Im selling my car to settle the hp then leasing one from my mums work I'll be financing this with the bit of money left over from this then there will be £70 a month free to put inton my iva

[ray_a]

I think you have agood chance as you say you need the car have a chat with your IP.

Please tell us what happens as it you will be useful for the future.

Regards and Good Luck

Ray

[Storm]

How are you paying the lease for the new car Becky??

There arn't many cars that appreciate in value - based on £70 per month the car must have been about £2.5k - £3k when you bought it.

[MelanieGiles]

Your original car would have been excluded from the IVA on grounds of being used for transport to and from work, so you can do what you like with the proceeds - of course the outstanding HP needs to be cleared first.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[BECKY]

thanks Melanie god u must be getting sick of me!!

[MelanieGiles]

Absolutely not - the power of the forum is that everyone shares from learning information from each other - even insolvency practitioners!

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk