I feel gutted tonight. I contacted our IVA company yesterday regarding buying a car while we are still in an IVA. My husband and I both have cars which are 10 years old and due services and MOT's in the next couple of weeks, which we are dreading. My husband travels quite a way to work each day and we wanted a more reliable car for him. Our son has managed to get a job and we hoped to get a car from somewhere like moneybarn with him helping towards the monthly payments. The reply I received today was as follows:-
My concern over your proposal is that should at any point your son be unable to contribute to the loan, you are liable for the debt. This is not an allowance we could ever make available in your budget as it is considered post-IVA debt and you would be required to find the balance yourselves to pay each month in the event your son is unable to pay.
Where you are unable to source funds to pay this loan and default, this has a potential to detrimentally affect your arrangement.
If you can provide me with further information in relation to the agreement itself - amount borrowed, monthly repayment etc we will review.
The advice given to our other clients is that a payment break could be considered for a couple of months in addition to funds received from the sale of your car. This will enable a second hand car to be purchased that is more suitable until such time as the IVA completes when you can consider your options long term.
We can't do the latter as we would get next to nothing for either of our cars and our monthly payments are £289. If we had a break of a couple of months we wouldn't have much to buy another car.
I feel really upset about it and hoped we were able to do something.
i heard of moneybarn and carloans for u ,although they set quite strict rules on what car and ages etc , also can you lease a car ? duncton ?like renting good luck
It is the IVA company who are not keen for us to do it. I don't know what we are going to do as both cars are going to need quite a bit of work done on them. We are nearing th end of our 5 year IVA agreement but will probably have to extend for a further 12 months due to the equity clause.
Everhopeful - I do sympathise with you, however it is usual for people to take a payment break if they need to replace / fix a car in an IVA.
I can see their view in that if your son was unable to pay then there's a chance your IVA could fail if you were unable to pay.
I suppose the only thing you could do is ask your IP to put in any variation meeting to be held regarding the possible extension of your IVA that you have to replace cars and hope that creditors could end the IVA at the end of the 5 years.
What do you mean by that kazza. We had a payment break.in the summer for car repairs so our IVA has been extended until June 2013 to pay the payments we missed. Then we will probably have a further 12 months due to the release of equity.
The bit I said about the car - I've not heard of anyone being able to take out finance or lease a car within an IVA unless they had already had an amount agreed for repayments at the beginning of the IVA and needed to replace during the IVA but kept the payments within the limit originally agreed by creditors.
The bit about a variation meeting - if you cannot remortgage then your IP has to get creditors to agree to a 12 month extension. If your circumstances mean at that time you wouldn't be able to contine to pay (ie you really need to lease or purchase a replacement vehicle) they can ask creditors to accept payments made to date be sufficient to end the IVA without the need of an extension.
I meant the variation meeting. We are due to get the house valued and submit the info to the IVA company shortly. What sort of circumstances would they allow us to do that about accepting the payments to date? Would we have to prove to them how much the cars would cost to be serviced and mot. Have you heard of anyone being successful in things like this? We have no idea.
Last edited by everhopeful2011 on Mon Oct 22, 2012 9:07 pm, edited 1 time in total.
Ultimately the decision on whether the creditors will accept payments up to date will be down to them. You should perhaps discuss the option with your IP and ask them to put it to the creditors in a variation.
They may not accept, but you have nothing to lose by trying I guess.
We're willing to wipe the slate clean, give you a fresh start. All that we're asking in return is your cooperation.
I suggest that you ask them to put your suggestion to creditors at a suitably convened meeting for such purpose. This is something I have agreed to several times for my clients, and so long as it does not affect your ability to maintain your IVA payments, it is entirely within the Supervisor's discretion.
We are with Grant Thornton and I emailed them yesterday. I received the above reply today. How long does it normally take to arrange such a meeting? It is just with the MOT's running out in a couple of weeks we are running short of time.
Both cars are really past their best but the main thing is my hsband getting to work each day.
I think you need to escalate this up the food chain in GT - but to receive any sensible response from your IP or a Senior Manager, they will want to know how much you anticipate the new car payments to be and how these will be included in your budget. With a better prepared argument you may find a different answer.
We would go through Moneybarn probably so it would mean a mininum amountof £5000. We don't need a really expensive car just a reliable one for my husband. When I looked on the calculator on their webpage it came up with monthly payments of around £220. Our son would be able to contribute to these payments now he is working. Do you think these facts wouls be suffice? How would I go about talking to someone higher within Grant Thornton. I am scared of speaking to somebody.
We got our car just before the start of our iVA, as we gave my old cr back due to not being able to refinance with another company.
Moneybarn were very helpful in calculating costs with us and getting pre contract details together so I could share prior to my proposal being drawn up, but they do like a deposit and always tend to look at the highest apr tier, that way you can avoid aby disappointment and plan for worst cost scenarios.
If I did not have my car I would not be able to work, as I do up to 2300 mile pm sometimes, so I understand how worrying this must be.
I hope you get it sorted fast !!
Started IVA 27th Feb 2012 - Due to complete 27th Jan 2018 !!
Full & Final submitted and accepted 30th March 2015, paid 10th April 2015 - 3 yrs 1 month into IVA
Completion Certificate received- 30th April 2015!!
I think that your suggestion is sensible everhopeful. Can I suggest that in the first instance you ask Karol to look into this for you - she has worked wonders for other posters in the past. If not, I can escalate this for you - but it would be better if you could try and work things out with them directly in the meantime. Please don't be scared about tackling this - the people on the other side of the phone are only human after all.
