Will they let us?

[dixie002]

Hi can anyone advise? We are 10 mths into our IVA, which will run for an extra year as NR are a creditor.. we currently pay £996.00 per month. I have a car on HP for which I pay £249 per month. Our IP made a slight omission and have stated that they thought our car would be paid for from next May (2011) and we would then keep it, our car was bought under an options scheme wherby after a term of payments, you either pay a lump sum and keep the car or upgrade it to a newer model or hand it back. As our IP thought that we would have the car, it is written into our agreement that we increase our payment in May 2011 to £1247 per month for the remaining 4 years. This means that we wont have a car, and with repayments like this will have no hope of saving for one. What I am asking is..my husband has done fairly regular overtime which we have saved to pay over at review time. Is it likely that the IP will allow us to keep all/some for a car? The overtime is not guaranteed.. thanks for your help

[MelanieGiles]

This should not have been missed by your IP Dixie - as presumably you provided them with a copy of your HP agreement to check. I think that you now need to speak to your IP, identify why the balloon payment was missed and take advice as to what to do next. The finance company may allow you to keep the car and refinance the balloon payments, but this will affect your IVA contributions so a variation of terms may be essential to getting your IVA back on track with effect from May 2011.

[dixie002]

Thank you for your advice Melanie am guessing that they probably wouldnt consider keeping the repayment terms as stated but allowing us to purchase a car with the overtime rather than pay it over to them

[MelanieGiles]

Anything is worth negotiating on Dixie, but I think a variation will be needed either way. Speak to your IP directly to see what he/she has to suggest.