www.iva.co.uk

Hello I'm new to this forum. We are thinking off taking out an iva as my husbands salary had been cut and things will start to be un manageable. I have been in touch with payplan but have a few questions.
I'm currently renting, will I have to inform my landlord I'm not in any arrears will this affect us renting in the future as we will not be able to buy any where.

Also we have a car on hp which we have to pay a lump sum at the end to keep the car or we can just change the car and continue with hp. As we won't be able to afford to buy a car would we be able to continue with the hp as my husband needsthe car for work and it's a 70mile round trip
I'm very scared about going into an iva so any help would be great
Thanks
Jo

Hi Jo
We're only in month 1 of our iva so not very experienced at all this but no I don't think you have to tell your landlord as he/she isn't one of your creditors. Not sure about the hp on your car tho, as I think all unsecured debt has to go into your iva. I'm sure someone who has better answers will be along shortly but I just wanted to say welcome to the forum (I'm sure you'll find it useful) and good luck with the iva if you decide to go ahead, we are so glad we did. I'm finally sleeping properly for the first time in about 6 months

Hi and welcome to the forum.

You don't have to tell your landlord.

As regards the car I think you will have to sort this out with Payplan. Not sure what happens when there is a lump sum payable at the end.

Hi Jo, the IVA wont affect your tenancy with your landlord. He doesn't need to know about the IVA at all.
With regards to your car, most people would usually look into spreading the lump sum payment over monthly payments, so you may just continue making your usual monthly payment for a few extra months to cover it. I hope this has answered your queries.

Hi Jo just wanted to say welcome to the forum.

I think your IP is supposed to inform your landlord, although I can't see this having any consequences tbh. You shouldn't have problems renting whatsoever.

With respect to HP, say you are paying £200/month. This would be allowable (probably). If your final payment is say £3000, you would continue to be allowed your £200/month for 15 more months, after that 15 months the £200/month would be paid into your IVA for the benefit of your creditors.

Welcome to the forum, we are a friendly bunch!!

Hi Jo.58 - welcome to the forum. It is not a condition of an IVA that you inform your landlord however please do check your own tenancy agreement as they can vary. You need to ensure it does not saying anything on there about notifying your landlord if entering into an arrangement with creditors or if declaring yourself insolvent. Your name will appear on the insolvency register whoch anyone can access to see so best to check to be safe. I am sure it will be fine.

Ensure that your proposal takes into account the potential ongoing payments after the initial HP term ends so that creditors do not expect the available funds to be put into your IVA pot immediately.

Feel free to ask as many questions as you like of us on here but I am sure Payplan are addressing all your concerns and ensuring you are fully briefed on what to expect from the process. Never proceed with anything until you feel completely comfortable and are happy knowing what you are doing. If you're still concerned you always have the option to speak to more than one company as is recommended advice anyway.

the support on here is great so glad you found us!

Regards,

Renting could be a problem if you move during the term of your iva as it is likely to involve a credit check. But loads of us rent and there is always a solution e.g a guarantor, a higher deposit, using a private landlord. Balloon payments can also be a problem as the car company may not be willing to refinance once you are in the iva. Judging by other posters' experiences this can vary between companies. Your IP should be able to help plan for the balloon. x

I'd just like to say welcome and make sure you ask questions as it is better to ask what seems like a stupid question than find out 6 months later you should have asked it [:D]

Welcome jo.58 feel free to ask as many questions as you need to

As said before, you dont need to tell your landlord but if you move and take out a new tenancy agreement they may very well credit check you and find out about your IVA. You are likely to be declined by any agency that credit checks you before commencing a tenancy. It is best to know this in advance and work out a plan. Are you happy in your current accommodation and unlikely to move anyway? Housing Association or Councils will not reject you because of the IVA.

With regards to the car question that is more difficult. Your hire purchase company will more than likely refuse any extension to the plan or offer any more credit to buy a new car later on. You need to sort out the car situation ideally before entering the IVA and under the advice of an IP. Could you arrange an agreement with the HP company to change to an agreement where you would own the car outright in the end thus avoiding any need to change cars or undertake any credit checks.
Also with regard to your car the creditors may question the necessity to be paying out for a new car. The may wish you to own something older and cheaper that does the job. If its on HP I imagine its an expensive newer car. To enter the IVA you may have to sacrifice the car i'm afraid.

Best of luck

Thank you all for your message of infoand support. We are at the very early stages I have already spoken with payplan they are ringing me back on Friday as we need to make the decision either dmp or iva not sure it's a lot to take in.
The thought of being debt free after 5 years is great guess I'm just a little scared of the whole process but reading some of the forums on here it seems that once you make the decision it takes the stress off. The lady I spoke to at payplan didn't think the cars would be a problem we pay a month payment now but didn't know what would happen when we have to pay the balloon payment we don't have the money now and I guess we were just going to change to car and keep paying without the car can't get to work, no work no money.
I'm feeling rather overwhelmed with it all, but it's good to know I have found people I can talk to so thanks again

My last post wasnt meant to sound negative by suggesting that you would have to give up the car, I am just trying to suggest that you consult with an experienced IP that can factor the HP agreement into your plan and work something out with you. You arent obligated to enter an IVA, its voluntary and if you enquire with various companies I am sure you will find someone who can propose a sensible solution to your problem. Just be upfront and honest with them and they will provide you with a solution that meets your needs. An IVA is individual to you so your circumstances can always be factored in.

Its natural to be scared. But you have come to the right place for advice. Carefully research all your options with some different recommended companies and come to the decision that you feel is best for you. Taking out an IVA was the best financial decision I ever made. Its not always easy but the end result is definitely worth it.

Hi Mattyboy

We only moved to the property in may so have no plans tomove again but didn't know if the landlord found out would he renew the tenancy next year. The car is 2008 Toyota auris not really expensive not sure what we can do don't have money to buy a car and can't get finance oh dear don't know what we will do