Well I posted on here a while back regarding us applying for an IVA with CCCSVA. All was going reasonably well and we even got to drafting point, the thing is this-
We have a car on HP it is a pain and we wish we had never taken it on but we did own an older car which cost us £4000 and it broke last November and would have cost us £3500 to fix (bl**dy Vauxhall!!!) so we were stuck without a car and three young children to get to school etc So we looked at the options and decided on a low start deal with Ford - we got a Fiesta on HP, the first year payments were £290 monthly but subsidised by half by the car dealership, next year we pay the £290 then a balloon payment of £5000 roughly. We knew this would be a sticking point when going for an IVA but my brother very kindly agreed to help us out next year with the car payments and will be paying us £140 monthly for 12 months this was agreed and suggested by CCCSVA we got it in writing and the proposal was sent to be drafted. We then got another phone call to say that we can't go for an IVA unless we get rid of the car and I quote 'Buy a cheap runaround!' The problem being if we 'give' the car back now we will still owe £12,000 which would have to then be taken into the IVA, which we don't want to do and we won't have enough money for a cheap runaround anyway. We are so stressed out at the moment!
We decided to try for a DMP instead - do you all think we are doing the right thing [:(]
Help and advise most welcome.
Thanks
Hi, have you taken professional advice from anyone else, it's always advisable to get 2 or 3 opinion. Our professionals who post on the forum all come highly recommended and a list of companies can be found at www.iva.com along with reviews.
I would advise you to speak to at least another couple of companies before making a final decision. x
IVA final payment left the bank on the 26th January 2013...looking forward to a debt free future.
Firms differ wildly in their attitude to cars so keep taking advice until someone let's you keep the car! Lots of people do have Hp agreements in their expenditure without any problems. The only thing is that you may have to return the car rather than pay the balloon payment unless a friend or family member can loan you the money to be paid back after the iva has completed. Good luck x
Do take further advice. A lot of companies will let you keep the car and make the repayments outside an IVA as long as the monthly payments go towards the IVA once you have finished paying.
Could your brother pay the balloon payment rather than the monthly payments?
Visit the link Lesley posted and give one or two a ring.
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
When we took out our IVA, our car was still on HP..its was a clause in the contract that when the payments finished on the car they went straight onto the IVA.
Hi thanks for the replies. My brother doesn't have a lump sum available to give us for a run around he can give us the monthly amount but not a lump sum IYSWIM and to be honest we wuld struggle to get a reliable safe car that would be big enough for the 5 of us for less than £5000.
As for the balloon payment we have already arranged a loan from my father in law that will be there for us when needed and he will allow us to pay back that money when we can. CCCS were aware of this fact but they only seem concerned in us giving the car back, which is very frustrating!
We will try a few companies, thanks again
What a wonderfully supportive family you have Mrs Bee.
I would certainly speak to a few more companies. The experts who post on here come highly recommended.
I'm sure something can be sorted out with regards to your car.
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
Thanks Kallis, yes we do, however I have told my brother and our father in law is aware obviously but thats it, nobody else knows if my parents found out they would be horrific! I have sworn my brother to secrecy, lol. I have just contacted Melanie Giles, hopefully we will get a call in the next few days and perhaps we can sort something out?
I do hope so, let us know and we're always here for support and advice.
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
Hi
Having a cheap runaround is not a good idea when it has to last five years.
I would say that the plan that you had in place was perfectly acceptable so do contact another company or two and do not go into a DMP until you are sure that an IVA is not viable
Regards
I'm personally with Melanie Giles and find her and her team to be totally non-judgemental and very professional. Nothing is too much trouble for them. Melanie regularly posts on the forum offering advice to not only her own clients but every poster.
IVA final payment left the bank on the 26th January 2013...looking forward to a debt free future.
