I have a car on finance (PCP) but I struggled with payments so a family member paid me for the payments. This was all accepted and agreed upon when I started my IVA.
This week my car was written off, I'm awaiting my insurance payout but I also have GAP insurance so my finance agreement will be 100% settled. My first question will this be classed as a windfall? am i able to use this money to pay off my finance? if not it would push me further into debt when the balloon payment comes and I don't have a car to return.
My parents and grandparents are willing to split the cost and buy me a car (£6000) how will this affect my IVA? is it classed as an asset and if so how does adding an asset affect my IVA? will I be expected to pay more?
I would hope that the insurance payment and GAP payment will be allowed to be used for what they are intended ..... some firms are becoming more and more avaricious and income centric, so I hestitate to say it will be allowed
As for the new car --- it needn't be your asset -- your parents / grandparents paid for it, so, technically it is theirs. It is their business if they allow you to use it. Even the name on the V5C is the keeper, not the owner. After the IVA they might even decide to give it to you.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014 http://foggy.blogs.iva.co.uk