We are in an IVA. Can we sell a car to cover a F&F offer ?

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granville
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by granville » Thu Jun 22, 2017 7:54 am
We are in an Iva, at the moment we have a car that we can sell which will cover the offer of a full and final settlement, can we do this?
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Foggy
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by Foggy » Thu Jun 22, 2017 8:05 am
As long as the car is free from any finance and has been listed as an excluded asset in your arrangement you are free to do with it what you will. However, you do not want to risk the IP viewing the sale proceeds as an after acquired asset.

Have a word with your IP and discuss making a conditional offer : i.e. that you make an offer of, £xxx to be funded from the sale of the car. The car will only be sold if the offer is accepted. This way you will not lose the car or proceeds if the offer was turned down.
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Lisa Thomas
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by Lisa Thomas » Thu Jun 22, 2017 8:42 am
I agree with Foggy - only sell if the settlement is agreed otherwise they will want the proceeds and the IVA to continue...
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Lisa Thomas
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by Lisa Thomas » Thu Jun 22, 2017 8:44 am
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Michael Peoples
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by Michael Peoples » Thu Jun 22, 2017 12:47 pm
If you sell the car and still have a surplus income creditors may ask for the IVA to continue. It is more likely to be acceptable if your income has dropped or your outgoings have gone up.
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