Hi, I am currently in an IVA. I recently was in a car accident which was not my fault and my car has been written on. After paying off the finance there is approximately £4000 remaining. The repayment to the finance company was included within my IVA calculation. My IVA practictioner says that this amount (£4000) is due to my creditors and that I have permission to seek further finance for another car loan. However, the rates are very high. Is this right, or should I be able to use the balance as a contribution towards a new car? Thanks
You would get finance from Duncton, but it is high APR.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
I would discuss this with your IP.
I think it is only fair that the money should be used to replace the car with one of equal value to the one written off.
I think even creditors would be sympathetic to this.
It is not as if this money is a windfall, it is the value of the car you have lost, and obviously you will need to replace it.
If you were not allowed to keep it then you would have to buy an older vehicle and all the problems that will come with it, therfore costing you more in the long run. This could jeapordise your IVA an niether you or your creditors want the IVA to fail.
Personally, I think that you ought to be permitted to use the balance of the insurance proceeds to buy another car. It is unlikely that you will get finance for another one, and your creditors will benefit as your IVA payments can be increased due to the HP saving.
Thanks for the feedback, I am going to request that I retain the write off value less the outstanding balance of the HP agreement to buy a new car and increase. My IVA payment by £255 per month which is the HP Payment (still 21 months to pay). The additional dividend to my creditors would be nearly £3000 so I hope this is acceptable
MelanieGiles wrote:
Personally, I think that you ought to be permitted to use the balance of the insurance proceeds to buy another car. It is unlikely that you will get finance for another one, and your creditors will benefit as your IVA payments can be increased due to the HP saving.
Good luck with your suggestion. Hope they take it on board.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk