A payment break for a couple of months may be allowed...then you tack the missed payments on to the end of the term or overpay to make it up. A payment break plus your share of the bonus could get you a decent car. It's tough when your money isn't your own anymore but it will all be worth it in the end! xx
I cannot see why they can't allow you to retain the whole bonus now, and if they feel so strongly about the 50% share to let you pay this at the end of the IVA. I would not let any of my clients drive round in a dangerous, unroadworthy banger if the decision was mine.
Sorry to break into this post, but this is a similar problem i have been having for months..
My life is my Car - I need it for work (Mobile Computer engineer) need it for school runs and as a main family car. It is been declared a write off and i am waiting for it to finally die.
All i hear on this forum (and from my IP too) is the word "Cheap runaround".
I will argue this to the cows come home - A cheap runaround (£750 - £1,500) is total false economy, so every year after you will have to take another 3 month payment break to buy a new one or pay for the parts and labour to get it through the MOT - So in the long run you have probably extended your IVA by another year of payment breaks to deal with your "Runaround".
Don't get me wrong, a runaround is great for a lot of people (people who only need a car to go shopping or pick the kids up), but as a Main Car and primarily used for work (and in my case driving around Hertfordshire every day) you need something more reliable. (Im not saying the latest Range Rover, i mean a car in the region of £3000 - £4000).
I disagree that you can't get a decent car for £1500, I do think even in the 3-4k range you can easily pick up trouble that is going to cost in repairs, my husband's car is worth around 6k and has still cost us over £800 in the last year in repairs and maintenance. I have had cars that I've bought for £1000 and they have cost me less in repairs and to run than cars I've had in the £3k range, and I do 60 miles a day for work.
I do however think that in this case £750 is cutting things a bit fine asking to get a car that isn't going to cause problems from the off, the OP may get lucky but the chances are they could just be buying trouble.
But as Bol points out, the creditors don't care as they won't be shelling out, you just have to cut back to afford to pay for repairs or taken endless payment breaks.
I think you have to ask yourself what you would do if your situation was as just before you went into the IVA, maxed out on credit and needed a car, unable to afford repayments on your debt, what would you do then?
Hi Lem,
Well if i was in that situation again like before i entered into the iva at least i would be able to keep all my earnings including my bonus and this full bonus would sort my car situation.
An IVA is a long hard road but valuable lessons have been learnt along the way. Now looking forward to enjoying a debt free future!
If i kept my bonus in full now whats the worst the ip could do?
As long as i have proof of where the money went with receipt.
The situation still remains like this you see...NO CAR,NO JOB,NO IVA. fact!!!
An IVA is a long hard road but valuable lessons have been learnt along the way. Now looking forward to enjoying a debt free future!
Hi Lem,
Well if i was in that situation again like before i entered into the iva at least i would be able to keep all my earnings including my bonus and this full bonus would sort my car situation.
An IVA is a long hard road but valuable lessons have been learnt along the way. Now looking forward to enjoying a debt free future!
I know I understand, but that's if you were fortunate enough for your car to go when you were due a bonus, many of us don't get bonuses anyway so would still be in a predicament. For the record, I don't think it's unreasonable for you to keep this bonus to purchase another car with, but then I'm not an IP.
I do think this IVA business has to work both ways, we go into this being told that we pay over our disposable income after essential outgoings, but you quickly discover that even when your essential outgoings increase or change, there is little room for manoevre
I think it would be madness if your IP didn't let you keep your bonus to buy a Car that your jobs depends on!
I was in a similar situation when I was proposing my IVA, I had a complete banger of a car and my IP asked if it would last me the whole five years whilst I would be in my IVA... I said "No chance!" Luckily my IP (Melanie Giles) had common sense and advised me to buy a newer car on HP (as I would be able to carry on paying for the car whilst in my IVA) and touch wood I haven't had any problems with the car! I've only got 3 more IVA payments to go so i'm keeping everything crossed!!
I also had similar thing with the bonus. I found out I was pregnant last year so needed to use my bonus to buy baby things, luckily again my IP saw sense and let my keep my bonus otherwise i'm certain my IVA would have failed!
Like Lem says the IVA has to work both ways, it can't all be take take take by the creditors otherwise this just leads to failed IVA's when they could have succeeded with a bit of compromise from the creditors.
I hope you get it sorted out okay Christabelle_sparkle.
