Cars in IVA or DRO

Needtogetdebtfree
Needtogetdebtfree Posts: 3 Newbie
in IVA & DRO
Hi All,

I have been trying to sort out my debts but have recently been issued with 2 new CCJs which I now can't defend as they were sent to the wrong address. I am at the point now where I think a debt management or IVA might be appropriate, however 1 of my debts is a previous mortgage which was left after my property was repossessed in 2011 which had defaulted but it is now showing on my credit file as being up to date on the payments so I really don't know what to do and whether this can be included.
I need to be careful about what I chose to do as I have a car on finance which I need for my work and 2 children which is £330.09 a month. I don't have the money to buy a cheaper car, plus I have had 3 cheap cars before and they have cost me a fortune in repairs etc so I ideally need to keep the car.

Does anyone have any advice?

Comments

  • sourcrates
    sourcrates Posts: 28,829 Ambassador
    First Anniversary Name Dropper First Post Photogenic
    DRO is ruled out then, as you can't have a car worth more than £1000.

    Call stepchange to discuss your options.
    I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter
  • National_Debtline
    National_Debtline Posts: 7,998 Organisation Representative
    First Post First Anniversary Combo Breaker
    Hi Needtogetdebtfree

    As Sourcrates says you can’t have a DRO if your car is worth over £1000. If your car is on hire purchase you will also need to check the terms and conditions to see how it would be affected by an IVA. It’s common to see a clause saying the car would need to be handed back if you were made bankrupt, sometimes the same will apply with an IVA.

    Depending on your circumstances you may be able to consider a DMP, although this would not help with the CCJs. You need to seek advice from one of the free debt advice agencies on what is going to be your best option. Good luck.

    Susie
    @natdebtline
    We work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps
  • fatbelly
    fatbelly Posts: 20,447 Forumite
    Name Dropper First Anniversary First Post Cashback Cashier
    Needtogetdebtfree wrote: »
    Hi All,

    I have been trying to sort out my debts but have recently been issued with 2 new CCJs which I now can't defend as they were sent to the wrong address. I am at the point now where I think a debt management or IVA might be appropriate, however 1 of my debts is a previous mortgage which was left after my property was repossessed in 2011 which had defaulted but it is now showing on my credit file as being up to date on the payments so I really don't know what to do and whether this can be included.
    I need to be careful about what I chose to do as I have a car on finance which I need for my work and 2 children which is £330.09 a month. I don't have the money to buy a cheaper car, plus I have had 3 cheap cars before and they have cost me a fortune in repairs etc so I ideally need to keep the car.

    Does anyone have any advice?

    1. If you have a defence to the court claims you can get the judgements set aside so that you can make those defences. National Debtline have a factsheet.

    2. Your text talks about 'debt management or IVA', your heading talks about 'DRO or IVA'. You need to look at all the options, including also bankruptcy, to see which would work best for you. Again, National Debtline may be your best shot for impartial advice, If you ask an IVA-pusher, you know what the advice will be.

    3. Mortgage shortfalls are normal debts in all those strategies, as long as you haven't signed a deed of acknowledgement. What the credit file says doesn't matter.

    4. Rules regarding HP payments vary according to the strategy and so, if it is essential to you to maintain this agreement you need to check carefully. From your post there are still too many variables to comment in detail. But just to clarify for a dro, hp payments are only a legitimate expense if the car is valued at under £1000 on Parker's guide. A third party may take over the payments but you would need to explain this to the DRO team and still show that you met the other criteria for a DRO. A car on hp is not counted as an asset until the agreement completes.
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