I’m trying to get back on my feet, what happens about the family car I use ?

[Steinhart]

I’m going through an Iva currently, long story short I lost everything after nearly killing myself not intentionally but it happened !

Anyhow I’m trying to get back on my feet and one of my elderly family member bought a car for me to use on the understanding I could help them with shopping and appointments etc... as I wasn’t working and it would help her out.

Whilst legally the car is in my name it is effectively hers as I put no money towards it there is evidence of the transaction and it was paid by her.

The car is valued at £10,000 today was purchased for £12,000 so my question is simple what do I do, I’m not trying to get out of paying what I need to I’m not as of now in an Iva Just setting it up currently, when I was asked I’ve told them I drive a family car but pay for the tax and maintenance and insurance which is all true.

So as far as I’m aware I have 3 options but need to know if there is anything I’m missing

1. Sell the car possible give money back and buy a cheaper car
2. Transfer the car In to her name not ideal as she is 90 and not fair
3. Give it to the executor of my elderly aunt

Is there anything else I can do obviously I’m happy to sell the car as long as she gets her money back that would put me in a difficult position as I work part time and need a car for my job but obviously need to do the right thing for my family who were just trying to help out.

Please let me know ASAP many thanks.

[luluj]

Has your iva company told you you have to do 'something' with the car or is this just you worrying ?

If you have it documented that it was a gift and purchased by someone to support their living and wellbeing as well I would imagine you will be ok and the car be exempt from the iva but the maintenance costs etc taken into account when setting your budget.

I wouldn't offer to do anything unless forced into a corner and then I would ve careful what you do - a reliable car for the duration of the iva is essential and unltimately more cost effective

[Foggy]

Most of us, if not all, are allowed to keep a modest car in an IVA and I see no reason why yours should be any different. As Luluj asks -- have you been told different by your prospective provider ?

[Steinhart]

I was advised by the company who put the details in place that I should

1: sell the car
2: remove the car

Because it is listed in my name and will therefore be seen as an asset and would be asked to sell !

I’m not sure what to do at the minute as I’m more concerned it will cause more stress and agrevation which would be detrimental to my poor health.

I’m a worrier so possibly I am worrying over nothing I’m not sure but too much stress isn’t a good thing for me

Any other help please let me know

Thank

[kallis3]

I was asked if would sell my car and I told my company no and I was allowed to keep it. At the time it was worth £8k being a newish car way back in 2008. If you haven't already started the process, I would suggest speaking to a few more companies

[Foggy]

I agree wityh Kallis -- speak to a few more firms --- you need to be comfortable with your provider as you will be stuck with them in your finances for 5 or 6 years.

Might I ask who you are talking to at the moment ?

[Lisa Thomas]

If you have evidence the car was not paid for by you and you borrow it only I don't see that there is an issue.

I don't see how you can sell something that is not yours...!

[annierose]

I was never asked any details about the car throughout my IVA, but it may have been because I didn't own it outright at the start of the agreement.

I would recommend trying to keep the car as a reliable car will really take the pressure off during the 5-6 years of the IVA as it can be really hard when a car needs work or even replacing during the IVA.

[kallis3]

I owned mine outright and had no problem

[Steinhart]

Thanks everyone for your reply's, I have been busy at work, I have signed all the paperwork and gathered all the evidence in case asked any more questions around it but as yet no news,

I have been struggling mentally and physically for a long time and all these debt were incurred whilst I was effectively insane, I have been to hell and back and whilst mentally I was getting better this is the last thing that has been hanging over me and feeds my anxiety disorder so much so my body shakes and the fear is so immense it is gut wrenching and horrible.

I know this now is all fear based as I do not have a solution to the problem, half of me still believes the finance companies at the time were irresponsible to give me £65,000 worth of credit and whilst I didn't abuse it totally I know I have to take on responsibility for what happened as I know I cannot change it.

This is my only option as an IVA and this has been on the cards since 2005 when I first tried to deal with it. So it has been festering in my mind and on my conscious for 12 years knowing I didn't have a solution feeding my disorder and making me more physically and mentally unwell ! It has now left me with a rare physical disease / condition where if I put my body under any or too much stress my body effectively shuts down and I go in to a coma, so its been a horrible few weeks trying to balance medication to stop these problems happening.

Apparently there is a creditors meeting soon and hopeful it will be a successful outcome but it is out of my hands now.

Thank you once again and I will keep you informed of any changes should I hear anything more.

[Foggy]

Best of luck with the meeting. Remember, we are always here if you have any questions.

[kallis3]

Fingers crossed.

[luluj]

You have done the hardest thing in seeking support. Hopefully the iva will be approved and you will then feel a huge weight lifted off your shoulders.