How to deal with a new car in an IVA

Get expert opinion. This is the place for new questions to be posted.
  • 1
  • 2
16 posts Page 1 of 2
ukaviator
Posts: 5
by ukaviator » Mon Apr 16, 2018 8:14 am
My other half (we are not married) is entering a IVA but has a fairly new but basic car worth around 7000, she has no other assets.

I understand she may have to sell the car and purchase one under 5000 but I wondered if rather than selling it I could offer the difference of £2k and she keeps the car?

Alternatively I guess I could buy the car from her and then she would pay the balance above 5k to them?

Any help or suggestions on best way to achieve this would be great as she needs the car for work and childcare / clubs as I work over 60 miles from home and I'm not there daily from 6AM - 6PM to be able to take our daughter about. The car is 0% tax and very low insurance and also 2 years away from its first MOT. Buying a cheaper model would only up the monthly outgoings as she would have to pay more insurance, tax, mot and repairs.
User avatar
kallis3
Forum Expert
Posts: 73091
Contact
by kallis3 » Mon Apr 16, 2018 8:25 am
My car was worth 8k when I did my IVA and I was not required to sell it. Insist to her IP company that she has to keep it. A cheaper car may well not last.
User avatar
Lisa Thomas
Industry Expert
Posts: 6700
Contact
by Lisa Thomas » Mon Apr 16, 2018 8:32 am
Where have you got the figure of £5k from?

Does she need a car for work?
User avatar
kallis3
Forum Expert
Posts: 73091
Contact
by kallis3 » Mon Apr 16, 2018 8:54 am
OP says she needs the car for work and childcare.
ukaviator
Posts: 5
by ukaviator » Mon Apr 16, 2018 9:00 am
Many thanks all

I believe Stepchange have told her if the car is worth more than 5K she may need to sell it. I guess it appears it's in the "may" and it's down to circumstances etc as well.
User avatar
kallis3
Forum Expert
Posts: 73091
Contact
by kallis3 » Mon Apr 16, 2018 9:07 am
Fight your corner - we did!
User avatar
Lisa Thomas
Industry Expert
Posts: 6700
Contact
by Lisa Thomas » Mon Apr 16, 2018 9:09 am
Ultimately it will be up to creditors to decide if they are willing to allow you to keep the car etc. so it will likely depend on what the IVA looks like when compared to Bankruptcy and how attractive your proposals are.
User avatar
Foggy
Forum Expert
Posts: 26116
Contact
by Foggy » Mon Apr 16, 2018 11:22 am
You cannot take one asset and judge it's fate apart from all other aspects in your lives. As you said the operative word in the warning is "May". What should happen is that the car gets a mention in your proposal, as an asset which you intend to exclude for reasons they should quote in support of the exclusion and, as Lisa, says, the creditors will either accept this, or propose modifications.
ukaviator
Posts: 5
by ukaviator » Mon Apr 16, 2018 3:56 pm
Excellent, many thanks for your really helpful comments all.
User avatar
Lisa Thomas
Industry Expert
Posts: 6700
Contact
by Lisa Thomas » Mon Apr 16, 2018 3:57 pm
Best of luck with the IVA.
User avatar
kallis3
Forum Expert
Posts: 73091
Contact
by kallis3 » Mon Apr 16, 2018 4:50 pm
Good luck from me as well.
ukaviator
Posts: 5
by ukaviator » Mon Apr 30, 2018 10:17 am
Thanks all

Unfortunately my other half has been advised she cant go down the IVA route now by StepChange as she lives with me. They say that as we have a daughter together, and she has been living in my house for about 15 years she in their eyes owns 1/2 the property and therefor would need to sell it to pay the debt. We are not married or anything like that either

I didn't think that was right. I had the house 3-5 years before she moved in, she doesn't pay the mortgage (and apart from being registered at the property for council tax) doesn't pay a single bill and never has (never needed or asked her to) and as such everything is solely in my name.

She doesn't earn a lot (about £800 month) but pays for all the holidays and little things and pays me £200 a month which is actually paying back a loan I took out for her in my name to have a private op.

Any help on what the real situation is here please would be great.
ukaviator
Posts: 5
by ukaviator » Mon Apr 30, 2018 10:20 am
in addition she does have a car registered in her name, only worth about 6-7k

That was registered in her name but again I paid the deposit and finance outright in full (although the finance agreement was in her name)
User avatar
Foggy
Forum Expert
Posts: 26116
Contact
by Foggy » Mon Apr 30, 2018 10:32 am
ukaviator wrote:
Thanks all

Unfortunately my other half has been advised she cant go down the IVA route now by StepChange as she lives with me. They say that as we have a daughter together, and she has been living in my house for about 15 years she in their eyes owns 1/2 the property and therefor would need to sell it to pay the debt. We are not married or anything like that either

I didn't think that was right. I had the house 3-5 years before she moved in, she doesn't pay the mortgage (and apart from being registered at the property for council tax) doesn't pay a single bill and never has (never needed or asked her to) and as such everything is solely in my name.

She doesn't earn a lot (about £800 month) but pays for all the holidays and little things and pays me £200 a month which is actually paying back a loan I took out for her in my name to have a private op.

Any help on what the real situation is here please would be great.



Stepchange are talking rubbish ! It is true that it can be assumed that she has acquired a beneficial interest in the property, but this will not prevent an IVA from being put in place for her. Proving a beneficial interest is usually a matter for the courts, not your IP or your creditors, but this can be dealt with by simply adding an extra 12 months to the term (which is the likely outcome if she did own a share) as a compromise.

I would suggest having a chat with another firm (or two) ... try a small / medium firm, rather than the IVA factories ... preferably one where you are treated as an individual.
User avatar
Lisa Thomas
Industry Expert
Posts: 6700
Contact
by Lisa Thomas » Mon Apr 30, 2018 2:29 pm
I think you should get a second opinion. It will be extremely hard to prove this as you are not married and the house is not in joint names.

In any event that doesn't stop you putting forward a proposal.
  • 1
  • 2
16 posts Page 1 of 2
Return to “Ask IVA Forum and Industry experts”

Who is online

Users browsing this forum: recovering, Ryan and 13 guests