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Debtbuster

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Post by Debtbuster » Fri Apr 12, 2019 5:25 pm
Please can someone help. Our meeting is on Monday at 11am and at gone 5.30 tonight we have received an email saying that 28% of the share of creditors have said they want a modification from us. We are now worried sick and can’t get hold of anyone to talk it through as not really understanding it.

It is asking us to downgrade the HP on our car within 3 months by £24 a month and if not then pay the extra for the 6th year. What we don’t understand is that they want us to provide proof? We only took out the agreement 2 months ago so can’t change it and now our credit is going to be shot. It was fine 2 weeks ago as we haven’t missed any payments. Wgy can’t we just agree to the payments they want for the last year?

The only reason we chose the iva over bankruptcy was the car as I have two children with autism

Foggy

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Post by Foggy » Fri Apr 12, 2019 5:31 pm
I don't understand the dilemma here --- it is pretty much certain that you will not be able to get the car payment reduced. Why can they not simply increase your IVA payment by the £24, meaning you will have to divert it from other allowances -- but they will get this £24 they are after.

The way I read it is, if you cannot get this reduction, they will extend the IVA for a year to make up for it. This would, obviously be a pain, but not the end of the world in the grand scheme of things.
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Debtbuster

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Post by Debtbuster » Fri Apr 12, 2019 5:41 pm
I agree, I would rather just agree to another year with the amount. What I don’t understand is are they trying to get us to go to a finance company and choose a cheaper car by £24 a month or ask the finance co to extend the term to make it £24 a month. Either way they will say no because since we have applied for an iva our credit is shut. The awful thing is we were paying £24 a month less and moved it 3 years ago onto a plan for 5 years so we wouldn’t have to try financing the balloon payment in a years time. Nobody told us that we were £24 over, our car is still the sane. What do we do, got nobody to speak to as he sent it and then left the office. Have been in floods of tears. What do they mean by proof?

Debtbuster

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Post by Debtbuster » Fri Apr 12, 2019 5:44 pm
This is what is says on 4 creditors reply’s


98 Downgrade Car HP
The Debtor must downgrade their hire purchase within 3 months. The maximum monthly amount allowed is £250 per vehicle. In the event that this is not possible within these timescales, evidence must be provided to the Supervisor and the Arrangement must be extended for a period of 12 months. The full surplus amount must be paid into the Arrangement for the benefit of the Creditors. Failure to comply with this will constitute a breach of the Arrangement.

The person dealing with it at our IP company put in his email below which says nothing about proof


You will see that the only one affecting you is in relation to the vehicle HP where they are requiring a downgrade in HP to £250 or below from the current level of £274 i.e an extra £24 per month. If you are unable to within 3 months, then the IVA would be extended by 12 months to pay the full surplus i.e £24*60 =£1,440 or £120 p/m over the extra 12 months.

Foggy

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Post by Foggy » Fri Apr 12, 2019 6:07 pm
I do not know of any "maximum monthly allowance" per car. ALL the guidelines are guide figures and, in my guidelines, car purchase isn't mentioned at all, being one of those expenses that just "are" whatever amount they are contracted to be.

As for proof --- could you simply email (or write) to the car finance company asking if it is possible to reduce the monthly payments by £24 per month (don't tell them why), possibly by extending the agreement term to cover the shortfall. Hopefully they will just reply with a simple "No". Then the extension will kick in. Thing is though, you don't really want to be opening cans of worms.

The creditors are being unfairly awkward, considering they will be getting their pound of flesh anyway !
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

Debtbuster

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Post by Debtbuster » Fri Apr 12, 2019 6:20 pm
I would rather just pay the extra £24 a month as I don’t want my two children with autism to notice any changes in our lives hence why we didn’t go bankrupt. We have no assets!

luluj

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Post by luluj » Fri Apr 12, 2019 6:28 pm
I would agree to try and reduce payments, accept the extra 12 months ... your children won't notice anything .... it's just a little hurdle... don't worry ..if that is all they are asking as a modification I would be quite happy !
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Debtbuster

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Post by Debtbuster » Fri Apr 12, 2019 6:32 pm
who is going to let us take out an agreement with lower payments when this agreement is only 2 months old and we now have a poor credit rating? Nobody is going to do that

kallis3

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Post by kallis3 » Sat Apr 13, 2019 9:27 am
Do you get DLA for the kids at all? If so, have you thought about mobility allowance at all? You would be able to have a new car every 3 years.
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Debtbuster

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Post by Debtbuster » Sat Apr 13, 2019 12:31 pm
We do get DLA but its high care and medium mobility. You can only get a car if you have high mobility. Our children struggle with change, severe sensory issues, anxiety, well I could go on but don’t get classed as high mobility just high care. I have to drive them to schools far away from home and in the middle of the day. My daughter is a school refuser and it has taken us a year to build up to half days. My son has been out of school for 6 months and has just been awarded a place at a specialist school but its miles away. We have had to take him for settling in visits and even the parking is £8 for two hours! They will get given transport but only when full time. As you can imagine its caused a lot of problems with having the ability to work, hence the situation but we need the car.

Debtbuster

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Post by Debtbuster » Sat Apr 13, 2019 12:32 pm
I would rather use £24 out of the DLA per month to cover being able to keep a reliable car that will see us through the duration of the iva

kallis3

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Post by kallis3 » Sat Apr 13, 2019 1:06 pm
Can't you see if you can up your rate to higher rate?
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley.
http://kallis3.blogs.iva.co.uk

Debtbuster

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Post by Debtbuster » Sat Apr 13, 2019 1:15 pm
You generally don’t get High mobility for autism. It’s usually if you can’t physically walk far. My son has cerebral palsy though. Its also a 30 odd page document and their needs are no different to two years ago so unlikely to get upgraded.

kallis3

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Post by kallis3 » Sat Apr 13, 2019 1:21 pm
Our next door neighbours (adult) son has autism and can walk. Receives full rate DLA and mobility.
You could try asking.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley.
http://kallis3.blogs.iva.co.uk

Debtbuster

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Post by Debtbuster » Sun Apr 14, 2019 12:04 pm
Wow, really? I am due to do new forms for September so will have to see.

Our IP is trying to negotiate with this particular creditor and has emailed them to propose we just pay a bit more, just hope they go for it. Not sure what happens if they won’t. I guess it won’t get agreed and we will go back to how we were
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