www.iva.co.uk

We are br and have notification that our car has been exempt from the OR. My question is, if we can trade our exempt car in and put the extra cash, can we upgrade the car without the risk of the OR claiming it as an asset?

Yes - but how will you fund the extra cash? Is this to come from your IPA allowance?

We don't have an IPA. My nephew is looking into getting a new car and trading-in his. He has said, depending on the trade-in price of mine against the new car he would 'swap' his for mine and I could put any extra cash. Obviously, it depends on how much mine is valued at and how much cash difference there is. As the car would be worth around £3500, I was worried incase the OR would claim it.

Chris

My only concern would be where would you get the cash from?

I could afford around £500 plus the car so it's not a huge amount. I could raise this by saving and selling stuff on ebay.
As I say, it all hinges on the trade in price of mine so it's hypothetical at the moment.
Just need to know if the OR has any claim on assets during the 12mths before discharge.

Seems sensible then if you have the opportunity. The OR will be able to claim after-acquired assets until the date of your discharge, but a car of £3,500 is unlikely to give too much concern.

Thanks Melanie, if I did manage to get the car would I need to inform the OR?
It would be sensible as it is a diesel car, mine's a petrol and quite expensive to run.

Technically yes you should, but I don't think that they will be too interested.

Thanks again Melanie,
xx