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  • FIRST POST
    • baxterbaxter
    • By baxterbaxter 25th Nov 17, 2:35 PM
    • 3Posts
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    baxterbaxter
    Is my car at risk? & my daughters savings
    • #1
    • 25th Nov 17, 2:35 PM
    Is my car at risk? & my daughters savings 25th Nov 17 at 2:35 PM
    Hey,

    I'm currently in an IVA and have been since 2015. I took a years break as I was unemployed for a year so I've not actually paid my creditors anything, just payplan.

    My IVA is stressing me out with payplan and I find they make my mental health worse and worse.
    I just can't afford to pay the IVA.
    I am looking at going Bankrupt, therefore failing my IVA to do so.

    My mum purchased me a car for my daughter and I. I work 20 miles from my home and I require the car to get to and from work. I also need it for the school run.
    The car is a category D and therefore market value of 3,500. Am I at risk of losing this? I have no assets other than the car. It is all in my name as I don't live with my mum and needed insurance so therefore had to be me as the registered keeper.

    I bank with nationwide and when my nan passed away my 5 year old daughter was left £2,000. This is in a junior ISA but is attached to my bank account. It's registered in my daughters name and she is unable to access this until she is 18. I hope this isn't at risk?


    This has been a long journey to this conclusion. My debts are the result of an abusive toxic marriage.

    I tried talking to stepchange but they said they will not talk to me whilst I'm in the IVA. I'm not sure if I'm doing the right thing but I'm running out of options
Page 1
    • fatbelly
    • By fatbelly 25th Nov 17, 3:09 PM
    • 11,636 Posts
    • 8,767 Thanks
    fatbelly
    • #2
    • 25th Nov 17, 3:09 PM
    • #2
    • 25th Nov 17, 3:09 PM
    It's much much easier to keep a car in an IVA rather than bankruptcy

    https://debtcamel.co.uk/debt-options/bankruptcy/#things

    Remember an IVA is bankruptcy for someone who wants to protect assets, but if the car is the only asset you were protecting at the start of the IVA, that may be an expensive way to deal with it, and in fact is the owner of the car not your mum? Remember the owner is not necessarily the registered keeper.

    Money in your daughter's name wouldn't normally count as your asset but if it passed through your account they may ask questions about it.

    The only time I meet IVAs at work (debt adviser for CAB) is when they are failing or failed - all of those in my opinion were missold but it's difficult to prove as the companies providing them are good at covering their backs.

    Edit: How much is your debt total?
    • baxterbaxter
    • By baxterbaxter 25th Nov 17, 3:46 PM
    • 3 Posts
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    baxterbaxter
    • #3
    • 25th Nov 17, 3:46 PM
    • #3
    • 25th Nov 17, 3:46 PM
    My mum gave me the money to pay for it... so the receipt is in my name. She paid it in two separate amounts but via bank transfer. So I'm not sure how that would work?
    I had a cheap car and it was constantly breaking down and costing me hundreds (or my mum hundreds!) hence why I got the new car.

    We have offered the creditors 3200 to settle my IVA from my lovely mum. PayPlan have told me that it may be rejected and I won't be able to negotiate. That I will then end up having no choice but to go bankrupt.

    I've been told I owe about 6k.... to be honest this IVA was the worse thing for me and I don't feel like it helps. Being told I can afford to pay 130 a month when I am borrowing money from my (poor) mum to feed my daughter and I just adds stress. I'm currently paying a reduced rate into my IVA of 58 pounds which is more doable but they refuse to accept it and keep sending out my IVA is at risk of failing.
    • fatbelly
    • By fatbelly 25th Nov 17, 4:45 PM
    • 11,636 Posts
    • 8,767 Thanks
    fatbelly
    • #4
    • 25th Nov 17, 4:45 PM
    • #4
    • 25th Nov 17, 4:45 PM
    My mum gave me the money to pay for it... so the receipt is in my name. She paid it in two separate amounts but via bank transfer. So I'm not sure how that would work?
    I had a cheap car and it was constantly breaking down and costing me hundreds (or my mum hundreds!) hence why I got the new car.

    We have offered the creditors 3200 to settle my IVA from my lovely mum. PayPlan have told me that it may be rejected and I won't be able to negotiate. That I will then end up having no choice but to go bankrupt.

    I've been told I owe about 6k.... to be honest this IVA was the worse thing for me and I don't feel like it helps. Being told I can afford to pay 130 a month when I am borrowing money from my (poor) mum to feed my daughter and I just adds stress. I'm currently paying a reduced rate into my IVA of 58 pounds which is more doable but they refuse to accept it and keep sending out my IVA is at risk of failing.
    Originally posted by baxterbaxter
    6k debt in an IVA! Payplan should be ashamed.

    If you have 6k of debt, no assets (car is mum's) and no surplus income, you do a DRO.

    If you genuinely had £130 surplus at the start, a debt management plan would have suited, and you would have paid less than under an IVA
    • baxterbaxter
    • By baxterbaxter 25th Nov 17, 4:56 PM
    • 3 Posts
    • 0 Thanks
    baxterbaxter
    • #5
    • 25th Nov 17, 4:56 PM
    • #5
    • 25th Nov 17, 4:56 PM
    I originally started paying 80 a month... then 58 pounds a month. I've been told they will not be able to go any lower than 58 a month.
    They've come up with a figure of 130 since my budget review.

    I'm going to keep paying the 58 and see if they can go lower per month.

    If I had the spare money I wouldn't have an issue but I genuinely don't.

    Thank you for your help today. I will hope they accept the settlement figure rather than failing and making myself bankrupt.

    Much appreciated
    • Jono987
    • By Jono987 25th Nov 17, 10:42 PM
    • 83 Posts
    • 76 Thanks
    Jono987
    • #6
    • 25th Nov 17, 10:42 PM
    • #6
    • 25th Nov 17, 10:42 PM
    Are payplan on these forums? Why on earth they recommended you an IVA and not a DMP is terrible, really terrible. Please don't go bankrupt over 6k, it's really not that much debt; a DMP would be perfect for you.
    • fatbelly
    • By fatbelly 26th Nov 17, 8:55 AM
    • 11,636 Posts
    • 8,767 Thanks
    fatbelly
    • #7
    • 26th Nov 17, 8:55 AM
    • #7
    • 26th Nov 17, 8:55 AM
    I originally started paying 80 a month... then 58 pounds a month. I've been told they will not be able to go any lower than 58 a month.
    They've come up with a figure of 130 since my budget review.

    I'm going to keep paying the 58 and see if they can go lower per month.

    If I had the spare money I wouldn't have an issue but I genuinely don't.

    Thank you for your help today. I will hope they accept the settlement figure rather than failing and making myself bankrupt.

    Much appreciated
    Originally posted by baxterbaxter
    You are already insolvent. You are on the insolvency register. The only question is what form of insolvency suits you best. From what you've said here the answer is a Debt Relief Order.
    • Feral Moon
    • By Feral Moon 28th Nov 17, 4:29 PM
    • 2,739 Posts
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    Feral Moon
    • #8
    • 28th Nov 17, 4:29 PM
    • #8
    • 28th Nov 17, 4:29 PM
    Apologies for jumping into somebody else's thread but I was interested to read that the registered keeper of a vehicle is not necessarily the owner and therefore cannot (?) be classed as an asset for BR. I always assumed it was the reverse.

    What steps would need to be taken to prove the registered keeper and insurance policy holder are not actually the owner?
    • fatbelly
    • By fatbelly 28th Nov 17, 6:50 PM
    • 11,636 Posts
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    fatbelly
    • #9
    • 28th Nov 17, 6:50 PM
    • #9
    • 28th Nov 17, 6:50 PM
    You can't prove a negative. The owner would have to prove it's theirs with a receipt showing they bought it.
    • Feral Moon
    • By Feral Moon 29th Nov 17, 12:10 PM
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    Feral Moon
    You can't prove a negative. The owner would have to prove it's theirs with a receipt showing they bought it.
    Originally posted by fatbelly
    Private cash sale so only a hand written receipt which I'm sure anyone could fabricate.
    • Lungboy
    • By Lungboy 29th Nov 17, 12:39 PM
    • 1,121 Posts
    • 1,061 Thanks
    Lungboy
    Bank statement showing the person withdrew that amount of cash on that day or just before might be ok with the handwritten receipt.
    • Feral Moon
    • By Feral Moon 29th Nov 17, 12:49 PM
    • 2,739 Posts
    • 4,004 Thanks
    Feral Moon
    Bank statement showing the person withdrew that amount of cash on that day or just before might be ok with the handwritten receipt.
    Originally posted by Lungboy
    No bank transaction took place. Cash used from sale of another vehicle.
    • fatbelly
    • By fatbelly 29th Nov 17, 5:57 PM
    • 11,636 Posts
    • 8,767 Thanks
    fatbelly
    Private cash sale so only a hand written receipt which I'm sure anyone could fabricate.
    Originally posted by Feral Moon
    No bank transaction took place. Cash used from sale of another vehicle.
    Originally posted by Feral Moon
    Sounds like you're stuffed then.

    Let's hope the OP has a paper trail.
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