I have a car on leas and have 2 months left to pay, then a balloon payment. This was explained to Hanover. However they told me that it was not and and i could carry on paying the rest of my payments for the next 2 years. I have since been told by the company that this is not the case. The agreement ends in 2 months and the final payment is due. This leaves me without a car and in more debt. What are my options. Help.
In most cases the monthly payments are allowed as an expense and carry on for the term of the lease agreement. However financing the balloon payment is not catered for as you are not supposed to incur further debt. Some finance companies will, however, re-finance the balloon payment, with the agreement from your IP and the lease is converted to HP --- but these are few and far between.
Some people have had success with a firm called Moneybarn ---- but, again, you will need your IP to agree.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Hi Gavin , I have the same problem , I was told by my iva practitioner than I don’t need to worry it’s very simple to carry on paging the car finance once the balloon payment is due , I then found out that’s not the case , mine is due in October this year and I have contacted money barn who do usually offer balloon payment finance for people in iva’s but because of the pandemic they are not offering finance to anyone at the moment , when I told my iva firm this , I said that a family member has agreed to pay my balloon payment for me on the basis I pay them back the same monthly payments , my iva firm said if I got a letter from the family member confirming this then I could do it that way , maybe you should call money barn and if they say the same thing to you , see if a family member could do the same for you ? I don’t think iva firms usually allow you pay back family members but because of the pandemic and money barn not offering balloon finance it may be your only option and of course we all need a car to get to work to pay the iva off anyway
Good luck ! And if your iva firm say you can pay a family member back make sure you get this in writing ( I did ) as I was worried come October they may change their mind .
