If you put it down as loan then you would need to inform them as it's credit.
Is there anyway your family could pay for the car and then hang on for payments until after the IVA has completed?
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
font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by Lisa Thomas
How much are your monthly payments?! They must be extremely high if the f&f would be £40k...
In our original paperwork it states they anticipate 40k equity release in yr 5. Our debt total was around 60k at the start of Iva and we pay £270pm
We haven't been asked to release equity yet as have only just recently send off valuations of the house etc
font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by kallis3
If you put it down as loan then you would need to inform them as it's credit.
Is there anyway your family could pay for the car and then hang on for payments until after the IVA has completed?
No we would need to pay them the £110 each month so they could pay the loan payment that would be in their name. Our iva docs say 75 months and so we still have around 20 months of payments left if we can't release equity from our house
font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by Lisa Thomas
a F&F settlement would be based on contributions x the amount of payments left to make.
So either £270 x 6 (based on 5 yr term) = £1,620 or £270 x 18 (if 12 month extension applies) = £4,860.
You could offer a little less than that in settlement. Would seem cheaper than £5,280 needed for car repayments.
Will free up your contribution money if you complete IVA early but won't necessarily help with a lump sum for the car...
The £40k you are reffering to is a payment in full, which is not the same thing.
I see where you are coming from now, however as you said we still wouldn't have a car or any way of getting one unless we went to somewhere like moneybarn & pay 40% + Apr which would just land us right back in a whole load of extra debt. My family member can get a personal loan for 4K with just 4% Apr over 3yrs for £115pm ... Which we could afford to pay alongside the iva if we make sacrifices on general living expenses etc.
My own, personal, thoughts: On paper the loan the family is taking out is in their name. If they want to spend their loan on a car, which they will allow you to use, that is their business, and your IP need not know.
Further, you have agreed allowances, how you actually spend that is, again, your business, as long as we are talking about getting Lidl beans (eewww) instead of heinz to make a saving, cutting back on the papers, etc. rather than claiming a Sky subscription when you don't have Sky.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Good suggestion from Foggy - if you want to go down the car route rather than settlement of the IVA route let the family get the car in their own name. That way they keep ownership/security if anything goes wrong.
They could perhaps then rent it to you (for the same sum or near to that which they will be paying Moneybarn back).
You IP (or creditors) would need to agree that you have replaced expenditure on your own car for renting cheaply form a family member instead.
Given the figures involved it seems reasonable.
You will still need to think about who and how is maintenance/MOT/Service/insurance/tax etc going be paid for.
Can you consider getting a cheap runaround instead to simply last you 6 months?
Have you considered yet whether the equity rule is going to apply to you - you may only have to last another 6 months if it won't apply.
Perhaps you could just use public transport? (probably not convenient but throwing out all the options here)
Our mortgage is 170k and our house value estimated at £240-280k depending on high value or low... So my guess is we will be asked to try & release equity. But how much I don't know as if I'm right in thinking that extra mortgage can't be more than half monthly iva payment so about £135 a month? We have 13 years left on our mortgage but currently on interest only with nothing in place to pay off the 170k.... We need to get onto a repayment mortgage ASAP after completing the iva
You are highly unlikely to be able to remortgage so may very well have to carry on for a further twelve months in lieu of that equity.
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
Citizen advice told me that it would be unlikely that my mortgage lender would let me release equity due to my IVA and aperture agreed in this current climate so I'll pay the extra 12 months which I prefer
