My car isn’t being included in the IVA, last payment due in November 2018

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louise599
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by louise599 » Fri Mar 30, 2018 2:15 pm
If I’ve got debt with Lloyd’s TSB (loan and overdraft) and I’m potentially going to enter an IVA including 6 other creditors, how would it work with my car finance as that is through black horse. My car isn’t being included in the IVA as it’s last payment is due November 2018.
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Foggy
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by Foggy » Fri Mar 30, 2018 2:57 pm
Is the car on a HP or PCP type contract or was the loan a normal cash loan, unsecured on the vehicle ? If the loan is being left out I would imagine that your IVA payment will increase in november when you are no longer paying for the car.

I have to say that this is unusual, but if the other creditors agree it should be OK, as they will be getting more back in the end. I can see the reasons for leaving it out, but doubt the legality if it is unsecured finance.
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louise599
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by louise599 » Fri Mar 30, 2018 3:43 pm
Hi - sorry to not include that.

It’s a hire purchase agreement. Last payment is going to be 1st November 2018 and then the car is mine.

That is not a problem to pay the extra once it’s completed.

My main concern is the monthly amount for the HP is more than the Propsed IVA payment and the fact the HP is through black horse which is linked to or basically Lloyd’s isn’t it?

I don’t really want to refinance the car when it’s so close to being paid off.

Thankyou for your reply!
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Foggy
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by Foggy » Fri Mar 30, 2018 4:11 pm
Ah right ... as an HP agreement it can't be included in the IVA, being secured finance. It is normal to allow the HP payment as part of your allowances and then increase the IVA payment by that amount oncxe the HP is finished. The fact that BH and Lloyds are part of the same group shouldn't be an issue.
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plasticdaft
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by plasticdaft » Sat Mar 31, 2018 6:40 pm
Given the hp payment is more than the iva payment is your proposal offering extra after the hp finishes?

Paul
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louise599
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by louise599 » Sat Mar 31, 2018 9:25 pm
I’m not quite sure what’s going on to be honest - I need to speak with Freeman Jones on Tuesday - i don’t even think it’s been put on my expenditure.

They’re drafting a proposal but I think I can offer more - monthly payment wise.

I feel the current monthly amount being offered is too low.

I’m just worried about being screwed over after reading reviews - I just want to do things by the book and make it so it’s more likely to be accepted.
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Foggy
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by Foggy » Sun Apr 01, 2018 11:05 am
louise599 wrote:
I’m not quite sure what’s going on to be honest - I need to speak with Freeman Jones on Tuesday - i don’t even think it’s been put on my expenditure.

They’re drafting a proposal but I think I can offer more - monthly payment wise.

I feel the current monthly amount being offered is too low.

I’m just worried about being screwed over after reading reviews - I just want to do things by the book and make it so it’s more likely to be accepted.



I know you want to pay as much as possible .. but do not cut your cloth too tightly right at the start. 5 or 6 years is long enough under a strict budget ... under an unrealistic budget it is pergatory and more likely to fail.
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kallis3
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by kallis3 » Sun Apr 01, 2018 3:02 pm
Agree with Foggy - just make sure you can manage everything.
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Lisa Thomas
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by Lisa Thomas » Tue Apr 03, 2018 8:47 am
The HP creditor will be notified of the IVA and there is a slight risk they may cancel the agreement and recover the car.

The second potential issue to bear in mind is that creditors may not be happy allowing you to maintain the HP payments in the IVA if they don't believe they are reasonable and may want you to give up the vehicle so that you can increase your contributions accordingly.

The key will be how much the payments are, how much the car will be worth (they may want you to sell it in November and pay proceeds into the IVA), what you need the vehcile for and what the alternative travel expenses might be if you use public transport etc.
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