www.iva.co.uk

Hi, me again.

Ok me and my parnter have a baby son on the way.

My partner was working full time and pays 212 per month on a car lease/loan agrrement.

Since taking out this car agreement (3 year plan) she has dropped to part time work to spend more time with me, with the idea of finding a full time job in the future with more sensible hours to help increase income again.

In the mean time she fell preganant so there seemed little point in getting a new job, now she has car payments of 212 a month and will only have an income of 450 a month while on meternity leave. This is plenty to cover car payments, insurance, tax, and her part of our joint loan. BUT i am looking to start an IVA (not my partner) and obviously her earnings/contributions to the family bills will be taken into consideration. Which leads to the problem that most of her money is eaten up by car payments and a loan payment. Leaving little for her to contribute towards house hold bills.

The question is what will an IVA/Cereditors make of this? Obviously the IVA will have nothing to do with her but it does mean her income after bills is very low...


Thoughts please?

Thanks.

Mike

Hi Mike. Yours is not an unusual situation and a proposal can be structured that will not damage your partner's credit rating. Creditors may allow her to contribute less to the household and pay her HP/loan if she agrees that the payments to your IVA increase once these debts have been paid. She could also offer to pay more into the household and thereby increase your surplus for creditors when her own situation improves. Provided that creditors see a good proposal and they are not being unfairly treated in comparison to your partner and her creditors they should not have a problem. Provided everything is disclosed and explained I do not see an issue.

Just as more back ground info, her situtation is unlikley to improve as when she returns to work it will be part time only, due to child care issues. Her car requires a baloon payment at the end so really it there is 3 years remaining to pay over and above the 2 she is already paying as she will have to pay the ballon payment monthly if that makes sense.

How ever it does mean i would not need a car and could borrow hers... thus paying my credtors more.

In fact her wages would go up by a 100 a month when she returns to work after merternity leave.

Seems perfectly reasonable as her car is likely in good condition and would need less maintenance. You would be contributing towards it's cost and using it. In addition, she could refinance the balloon payment or renew the agreement whereas you could struggle with an IVA in place. The vehicle is needed for work purposes and without it the IVA could be in jeopardy.

cool, thanks