How to deal with a new car in an IVA

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ukaviator
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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.
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kallis3
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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.
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Lisa Thomas
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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?
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kallis3
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by kallis3 » Mon Apr 16, 2018 8:54 am
OP says she needs the car for work and childcare.
ukaviator
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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.
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kallis3
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by kallis3 » Mon Apr 16, 2018 9:07 am
Fight your corner - we did!
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Lisa Thomas
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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.
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Foggy
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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
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by ukaviator » Mon Apr 16, 2018 3:56 pm
Excellent, many thanks for your really helpful comments all.
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Lisa Thomas
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by Lisa Thomas » Mon Apr 16, 2018 3:57 pm
Best of luck with the IVA.
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kallis3
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by kallis3 » Mon Apr 16, 2018 4:50 pm
Good luck from me as well.
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