Hi, our car is about to give up the ghost

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Post by Richard.7 » Thu Aug 19, 2010 10:31 am
We are 1 year into our IVA, is it possible to obtain a loan or credit card, as our car is about to give up the ghost

Tina Shortland

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Post by Tina Shortland » Thu Aug 19, 2010 10:37 am
Hi Richard - welcome to the forum.

No it isn't unforuntately as you are already in an arrangement to help repay what debts you cannot normally afford to pay and this will have severely affected your credit rating. Your busget will have been set to give you what disposable income you have for your IVa so you would not have any spare money to pay for the car.

Speak to your IP asap to make them aware - they should be able to look at suspending your payments for a short term to allow you funds to buy a cheap runaround.

Have you got a generous family member or friend who could help you out with a cheap car until your IVA is over when you could then pay them back? If you are on a high dividend to your creditors it may be possible to have a variation proposed to revise your income and expenditure to allow a payment for this if having a vehicle is necessary for your work.

I am sure your IP will be able to sort something for you so that your IVA does not have to fail.

Keep us posted as to how you get on,

Regards, Tina Shortland, Debt Advisory Manager for Melanie Giles at Debt Advice TV.

If you’re looking for effective debt related information, articles and news, then go now to our on-line advice service at www.debtadvicetv.com

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Post by Julie » Thu Aug 19, 2010 7:27 pm
Hi Richard,

You cannot get credit over £500 whilst in an IVA. I appreciate you need a reliable car, is it to enable you to work?

Options available include, taking a mortgage break: taking a break for IVA payments and extend your IVA: leasing a car if IVA repayments can be met/reduced?


Adam Davies

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Post by Adam Davies » Thu Aug 19, 2010 10:18 pm
If your insolvency practitioner gives you permission you can take out credit but it is difficult to find a company to assist, however www.duncton.com are excellent.
If you can't obtain finance you may be able to ask a family member to take out a loan/hp, and you repay them each month.Just make sure that your IP is aware and agrees to it.
Andam Davies
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