What would you advise?

[g_tm]

I have recently entered an Iva & all payments have been made. I amcurrently employed & have a company vehicle but when I entered the IVA I had a vehicle on finance which I have been told to sell as part of my agreement. I am having difficulty selling the vehicle as it is not in great condition & I have had an offer from a dealer which is substancially lower than the estimated price I am expected to get back for the vehicle in My IVA. I must sell the vehicle before the end of my agreement but am unsure if I do accept the low offer how this will affect my IVA & monthly payments. I need to get rid of the vehicle asap as I cannot afford the upkeep either. What would you advise?

Also, could you tell me how it would affect my Iva if I were to change jobs/employment? If I took a job with lower salary would my payments be reduced or remain the same?
Many Thanks

[MelanieGiles]

Hi grm and welcome to the forum

With regard to the vehicle, I would sell it now as it is costing you money to keep. So long as you can demonstrate that all reasonable attempts have been made to effect the best price, then your IP will probably concur with this advice. If you have guaranteed a minimum dividend as part of the IVA deal, then you may need to pay over additonal contributions at the end of the arrangement to meet any shortfall.

If you take a job with a lower salary, then your payments will obviously have to reduce unless there are any corresponding cost reductions. IVA payments can only be lowered with the prior agreement of creditors - however some lenders are now stipulating at the original meeting stage that contributions can be lowered by up to 15% without recourse to a further creditors meeting - so you should check your own IVA proposals and Chairman's Report to see if you would fall into such category.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk