I'm one year into an IVA. I chose this over bankruptcy due to my car being on HP and needing it for work as ots a condition of employment and tool of my job. I had an accident in January and the car was written off. I'm paying my brother a monthly payment to cover a car he's not using.
I've not told GT yet. Does anyone know if this would be a problem?
I assume the HP payments formed part of your expenditure allowances in the IVA --- are these still ongoing until the shortfall from the insurance is covered ? If not GT will want this money.
Any arrangement between you and your brother, if funded from savings you are able to make elsewhere, should be no problem.
If you are diverting the old HP payment ( if no longer payable) to your brother, you will need to discuss this with GT.
They should be sympathetic to this workaround, as with no vehicle you have no income .... thus no IVA !
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
I'm paying my brother the same amount. HP has been settled and direct debit has just been cancelled and standing order already set up with my brothers account.
The issue I would see here if you were paying say £300 a month on HP for the now written of car is whether paying your brother the same amount a month for the use of a car he no longer needs is justified.
You're IP may well say you are released from the HP requirement in your original IVA expenditure so go buy a second hand car for say £1200 that meets your needs and they'll allow a 4 month break on increasing your payments to meet it or some other arrangement that allowed you to buy another car now then increase your payments after.
Personally I think any IP would be questioning the arrangement as described.
Last edited by herbekj on Tue Mar 05, 2013 6:50 pm, edited 1 time in total.
Last Payment - November 2011 - Completion Certificate received 2 weeks after last payment, Removed from Insolvency Register within 4 weeks after last payment.
My worry for the OP is that new DDs have been setup and that GT (and to be fair any IP) will i am sure object to this as a 1 to 1 replacement payment is questionable and if GT as the OPs provider refuse it then payments to the brother could be demanded by GT leaving the OP in a difficult position personally with the brother and also GT.
Last edited by herbekj on Tue Mar 05, 2013 7:11 pm, edited 1 time in total.
Last Payment - November 2011 - Completion Certificate received 2 weeks after last payment, Removed from Insolvency Register within 4 weeks after last payment.
The problem is that you were paying £300 on an HP car and now paying that to a family member, if you had got another car on HP to replace the one written off and still paying £300 then there would not be a problem.
I strongly suggest you get GTs approval for this ASAP.
Last Payment - November 2011 - Completion Certificate received 2 weeks after last payment, Removed from Insolvency Register within 4 weeks after last payment.
This car is still on finance just not in my name. I couldn't get new finance due to the IVA and needed the car super fast. It's been a horrendous few weeks as accident was other person fault. Life knows how to bite you on the bottom when least expected.
I sortoff guessed that answer, so what you are saying is that the car you are now driving is in your brothers name, is in finance in your brothers name and that you are paying your brother the finance cost which basically matches what you were paying on your written off car,
Really not sure how IPs or creditors are going to be happy that you have in effect taken on the debt of someone else's property and that you can buy a car for XX sum of money and then return the £300 a month after for the creditors.
An expert on the forum would be best to respond now I think,
Last edited by herbekj on Tue Mar 05, 2013 7:47 pm, edited 1 time in total.
Last Payment - November 2011 - Completion Certificate received 2 weeks after last payment, Removed from Insolvency Register within 4 weeks after last payment.
Let us know how you get on with GT as you need to tell them this change ASAP.
Last Payment - November 2011 - Completion Certificate received 2 weeks after last payment, Removed from Insolvency Register within 4 weeks after last payment.
If the payment can be justified by reference to external rental costs of a similar vehicle, then the IP may have no issue with this as you do need a car to get to and from work presumably. But you will run into difficulty if the cost cannot be justified, and you must advise your IP of the change in circumstances.
I have to do almost 2k miles pm, and i woule be lost without my car !
You could always ask your IP if you could apply through Moneybarn - who are good for people with IVA's, and apply for a new HP agreement that meets the same monthly amount ?
That way it is above board and justified.
Started IVA 27th Feb 2012 - Due to complete 27th Jan 2018 !!
Full & Final submitted and accepted 30th March 2015, paid 10th April 2015 - 3 yrs 1 month into IVA
Completion Certificate received- 30th April 2015!!
