Approved but creditors want me to down size car very confused

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helen534
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by helen534 » Wed Aug 15, 2018 1:20 pm
My creditors meeting was this morning got a call just after one to say it was approved but they want me to down size my car as I pay £276 for my car a month n they only allow max £250 if I can provide proof I can't down size then they will add another year onto the iva.
I phoned my car finance company and they said I can't down size as it's a fixed agreement to that car and were very confused themselves as if I went to another garage n applied for finance on a cheaper car they will see I have finance already and my iva has started I won't be able to get car finance else where not only that i would still owe money on car i have if i gave it back ip said the creditors know there may be a shortfall n that can go in iva but the car finance company would have the most debt owed they could vote no I can't get hold of ip waiting for a call back
I just don't know what else to do
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MerlinL14
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by MerlinL14 » Wed Aug 15, 2018 1:42 pm
I can't see you getting further or extended credit for your car. You will probably get into further debt with the finance company if you decide to surrender the vehicle due to them adding surrender costs. I would suggest you get your car company to give a surrender notice showing fees if you give up the car so you can show your IP that surrender is a non starter. You would also need a replacement car which is never going to happen if you have to get it on finance. I think the best way forward is to accept an extra 12 months of payments.
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helen534
Posts: 12
by helen534 » Wed Aug 15, 2018 1:49 pm
MerlinL14 wrote:
I can't see you getting further or extended credit for your car. You will probably get into further debt with the finance company if you decide to surrender the vehicle due to them adding surrender costs. I would suggest you get your car company to give a surrender notice showing fees if you give up the car so you can show your IP that surrender is a non starter. You would also need a replacement car which is never going to happen if you have to get it on finance. I think the best way forward is to accept an extra 12 months of payments.


The car finance company said they would help if they can but it is a fixed agreement they said to call back if I need any emails sent or paper work they were really nice about it.
I can not surrender the car until I know I have another one as I'll need a car to get to n from work.
I would prefer to accept the extra 12 months but they will only give me that if I provide proof that I can not down grade my car in 3 months or iva will fail.
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MerlinL14
Posts: 1440
by MerlinL14 » Wed Aug 15, 2018 1:56 pm
Get the car company to write a statement saying you will be in further debt if you surrender the car. Use this as proof to your IVA supervisor that even downsizing is going to increase your debt and you are happy to carry out the further 12 months of payments.
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Lisa Thomas
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by Lisa Thomas » Wed Aug 15, 2018 2:25 pm
If you have not (yet) approved this proposed modification then the IVA highly likely to not be approved as it sounds as if it's hinging on this modification.

I suspect the creditors might be saying they feel the payments are a little high so you will need to find the savings elsewhere on your expenditure to find the extra contribution they require.
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Foggy
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by Foggy » Wed Aug 15, 2018 2:29 pm
I agree with Lisa --- if you accept the max allowance at £250 and commit to finding the extra £26 by savings from other agreed allowances.
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helen534
Posts: 12
by helen534 » Wed Aug 15, 2018 3:04 pm
Thanks everyone.
I've again spoken to both car finance company have written me an email and sending a letter stating it's a fixed agreement, cost details and over how many months and no altercation to figures can be made he also said on the phone which wasn't said to me earlier that there is a way to get out of the finance agreement to sell the car n the garage pays the finance company and I apply for new finance with that garage I then said it might not be accepted and that's more credit. He was happy to sed any information I need don't think what he has sent is enough proof have forwarded it to ip already.
As I can't downgrade my car with finance company I already have surely trying to get another one on finance wouldn't go through
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