Any advice would be greatly appreciated.

[delsey33]

Its taken me a while to write on this forum, but feel i cant wait any longer, as my husband is due to change his job from self employed overseas to employment in this country. Unfortunetely this will involve a severe pay cut, leaving us unable to pay our outstanding debts.

I understand he will need to be in his new job for 3 months before we can propose an iva, so we will be contacting our creditors with a debt management plan in the mean time.

One of my concerns is a car we have on finance with capital bank, it says on the paperwork that it is an un-regulated hire purchase agreement with gap insurance. Ive searched online to see what will happen and can find information on repossesion but still confused as the gap insurance seems to be a loan ontop of the car finance. Do i need to ring the finance company and arrange for them to take the car back as this may involve less cost than them reposessing the vehicle? Any advice would be greatly appreciated.

[Oliver]

You won't necessarily have to wait for 3 months to propose an IVA, speak with several Expert Companies now and see what they recommend.

If you have a Hire Purchase agreement on your car this is a Secured Loan agreement and therefore (if you reasonably need a car) you will be allowed to keep this whilst in an IVA.

If you feel that you don't want the car you can return it and then if there is still any money owing on it this will transfer to an Unsecured arrangement and you can include this in your IVA.




Best Regards
Oliver

Thomas Charles and Co Ltd.
Experts in personal debt solutions.
Read customer feedback at: www.thomascharles.com/about_us.asp

[MelanieGiles]

I agree with Ollie. If your husband has found a good job, and you can demonstrate his earnings with a contract of employment, there should be no reason why an IP cannot proceed immediately. The reality is, it will probably take 2-3 months for the IVA to be completed in any case.

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

[freelili]

Just wanted to say, when you phone companies, be careful and shop around, your living expenses should be basic but realisically affordable for a 5 year period. Some people have had bad experiences with unrealistic proposals. One more thing do not be ashamed, the company will make money from you and you should feel comfortable. I know from reading another post that Thomas charles will give it to you straight, thats what youre looking for.

Good luck and keep posting

LILY

[delsey33]

Thankyou Oliver, Melanie and Lily for your quick replies. I will be making some phonecalls tomorrow to see how we stand with the IVA and will keep you informed.
Thanks again
Delsey

[neverending]

Hi
Just for info gap insurance covers the difference between the valuation by the insurance company and the finance balance if your car is written off following an accident etc.The premium is added to your initial loan and ,from memory ,is non refundable so will form part of the debt.
Regards