I have been speaking to a couple of companies for help with the debts my partner and I have amased (around £35k). Some have told me that I would be perfectly suited for an IVA however one company told me that due to us having a caravan (worth around £11k) the creditors would ask me to surrender it (sell it apparently) and give the money I get from the sale to them as they see it as an asset that I don't need and they won't allow??? Does this sound right? Will they make me sell it?
I really don't want to lose the caravan as it's the only way me and my partner can get away from all the stress (it's been paying it's toll on our relationship if I'm honest), it costs us hardly anything to head over to clacton on sea for the weekend and we have become very fond of it.
Any feedback at all would be much appreciated as we really need to do something asap, we just can't keep on top of our monthly payments any longer.
We had a static caravan before the iva - so had rent costs/utility bills etc. When we spoke to DFD, part of the agreement they drew up for us was to sell the caravan and pay the money we made into the IVA - which we did. It wasn't that they made us do it, but it was an agreement between us and them. It made sense for us to get rid of it.
I am guessing yours is a tourer, so not too sure where you would stand.
Its now time to start living and to make some some wonderful memories!
Read my blog at http://flow13.blogs.iva.co.uk/ 'Aiming for the finish line'
It is not so much that it costs money to run the caravan, which as you say is peanuts really, but the fact that it is an asset that can be considered a luxury, and which is of value enough to provide a significant extra return on top of any monthly contributions that you may be asked to make. That said, an IVA is a deal between you and your creditors and if you are not happy to sell then tell your provider so. Perhaps a compromise can be reached whereby, for example, you would be happy to look at 6 years rather than 5. The worst the creditors can say is no, at which point you can revisit your alternatives and decide on a course of action that is more suited to your individual circumstances and preferences.
Regards.
Cert DR
23+ years in debt advice
I do not post for anyone other than myself
If as you say your caravan is worth £11,000 then it is a significant non essential asset and you would have to be prepared for the possibility of your creditors asking you to sell it for them to accept your IVA.
You could propose an IVA without offering it voluntarily and it might get through. However, you have to be ready for them to ask you to sell it and decide if you would be prepared to do this if it makes the difference between doing an IVA or not.
Last edited by James Falla on Tue Dec 14, 2010 4:38 pm, edited 1 time in total.
Hi Michael
I think you will have to sell the caravan for an IVA to be accepted I'm afraid.
You could look at entering into a debt management plan rather than an IVA and this would mean that you could keep hold of your caravan
Regards
Hi
You must be totally honest when proposing an IVA. It is a formal insolvency agreement and to withhold details of an asset would be a criminal offence.
Regards
I would try and negotiate keeping the caravan as i have a campervan(old cheapo but wouldnt be without it!!)cant imagine not having holidays for the next six years-as you say costs next to nothing to go away and it does ease the stress of daily life. I would go with size 5s suggestion-negotiate the extra year on your iva-also if you were able to offer a healthy return to your creditors on your repayments this may go in your favour.Good luck in whatever you choose and i hope you get to keep hold of the caravan!!!
full and final accepted January 2015
iva agreed; August 2010
iva would have completed; August 2017
extra year thank's to NRAM
In my experience, it is very likely that the caravan would have to be sold - as it is a significant asset which is not essential. If you did not disclose it, your IP would probably find it as perhaps one of the loans you have was used to purchase it, and maybe the site fees you incur would be detailed on your bank statements. Not worth getting caught out for I am afraid.
True a DMP would perhaps avoid the need to sell, the downside being perhaps a much longer repayment period with no legal protection and the possibility of interest continuing to be charged. If a DMP is presented properly, it should also disclose your true position regarding assets and liabilities, so that creditors also are able to make reasoned decisions about whether to accept your offer of repayment.
