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  • FIRST POST
    • Needtogetdebtfree
    • By Needtogetdebtfree 19th Jun 17, 8:42 PM
    • 3Posts
    • 0Thanks
    Needtogetdebtfree
    Cars in IVA or DRO
    • #1
    • 19th Jun 17, 8:42 PM
    Cars in IVA or DRO 19th Jun 17 at 8:42 PM
    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?
Page 1
    • sourcrates
    • By sourcrates 19th Jun 17, 10:48 PM
    • 11,935 Posts
    • 11,419 Thanks
    sourcrates
    • #2
    • 19th Jun 17, 10:48 PM
    • #2
    • 19th Jun 17, 10:48 PM
    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 Board Guide on the Debt-Free Wannabe, Credit File And Ratings, and
    Bankruptcy And Living With It, boards. I'm a volunteer to help the boards run smoothly, and I can move and merge posts there.
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.

    For free debt advice, contact either : Stepchange, National Debtline, or, CAB.
    For Legal advice see : http://legalbeagles.info/
  • National Debtline
    • #3
    • 20th Jun 17, 4:07 PM
    • #3
    • 20th Jun 17, 4:07 PM
    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
    • By fatbelly 22nd Jun 17, 5:42 AM
    • 11,228 Posts
    • 8,394 Thanks
    fatbelly
    • #4
    • 22nd Jun 17, 5:42 AM
    • #4
    • 22nd Jun 17, 5:42 AM
    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?
    Originally posted by Needtogetdebtfree
    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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