In IVA and car finance woes

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amanda856
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by amanda856 » Tue May 09, 2017 5:40 pm
i have a car on finance and it is up in September. I have to pay a balloon payment at the end and I obviously don't have it, so my options would be to hand the car back or re finance which I am very worried about because i am in an IVA, i can afford payments but not sure i would clear for the finance to continue with my car until its fully paid or a new car. Please could someone chat to me I am very worried as i need my car for the kids and work.
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Foggy
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by Foggy » Tue May 09, 2017 6:32 pm
You will be very unlikely to refinance as you will fail any credit check --- the same will apply to getting a replacement vehicle. In any event, when the payments are no longer being made towards the car that amount would be added to your IVA payment.

Some IP's will allow you to put that money towards a new car instead ( but not all) --- but --- you have to secure finance ! The only firm I have had mentioned here is Moneybarn, though I have seen adverts for a few "ardverse credit" car schemes (obviously very expensive).
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benjiboo1
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by benjiboo1 » Tue May 09, 2017 6:59 pm
I had this problem too. I was 2 years into my Iva when my balloon payment was due. I was with Ford finance. I had not missed a payment to Ford but they would not re finance my car nor could I swap it. I had to hand the car back but was lucky enough to find a local garage that would finance me a car & at a very reasonable interest rate & at the same monthly payment I was paying to Ford.... although it was an older car.
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Foggy
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by Foggy » Tue May 09, 2017 7:10 pm
benjiboo1 wrote:
I had this problem too. I was 2 years into my Iva when my balloon payment was due. I was with Ford finance. I had not missed a payment to Ford but they would not re finance my car nor could I swap it. I had to hand the car back but was lucky enough to find a local garage that would finance me a car & at a very reasonable interest rate & at the same monthly payment I was paying to Ford.... although it was an older car.



This could be the answer -- but do run it by your IP and get permission first ! Not to do so could fail the IVA. Hopefully he / she will be helpful ---- after all --- no car = no work = no money for the creditors.
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benjiboo1
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by benjiboo1 » Tue May 09, 2017 7:44 pm
Yes foggy I did get permission from my ip with no problems. My iva is completed now.
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Foggy
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by Foggy » Tue May 09, 2017 7:57 pm
benjiboo1 wrote:
Yes foggy I did get permission from my ip with no problems. My iva is completed now.


I know Benji --- I was pointing this out for Amanda :-)
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Michael Peoples
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by Michael Peoples » Wed May 10, 2017 8:05 am
If you can borrow the funds from family to clear the balloon payment your IP may allow you to repay this at the same rate as the HP agreement. We regularly do this and it seems a fair way to do things.
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