Hi I currently pay £284 a month for my care finance , the last payment is due this October 2021 and then there is a balloon payment of £5266 , my brother has said he will pay the balloon payment for me and that I will pay £250 a month to him for 21 months ( iva practitioner is happy that I do this and has agreed which that arrangement ) once the 21 months is up paying my brother back I will still have 23 months of my iva left , I have read through my iva agreement and found this about extra household expenditure
“ increases in household disposable income
-if after your annual review it is determined that you have had a increased household disposable income then your contributions into the iva will be increased by 50% of this “
Am I right in thinking when I have finished paying my brother back , the extra £250 I will have left by not paying for the car I will be able to keep £125 of this ? And the remaining half be paid into the iva , rather than the whole £250 being paid into the iva .
It will depend on what your IP agrees in this regard when allowing you to finance the balloon payment via your brother. Many arrangements are worded to add the whole of an expired lease payment to the IVA repayment, when the car payments cease. If this is so, then your IP has merely extended that 'lease' period, by transferring it to your brother (rather generously as well). You need to speak to your IP to see what they will do (they do seem helpful and sympathetic).
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