IVA advice

Packet

Hi all, I am currently in an IVA a few months in now, but I have struggled to make payments on time in recent months.

I know the next step is bankruptcy, but I would like to know what happens next.

I own my own house, but I only own 70% of the home as I entered a shared ownership scheme with a HA. What would happen to the house? Do I still lose it?

Also got a car on HP, and my partner uses this to get back and forth work would we lose the car as well?

Can someone clear some points up for me?

Thanks

fiveyearplan

Neither of your questions are straightforward. You'll have to look at your lease with the HA to see if there is a bankruptcy clause.

As for the car, how much is it worth, how much do you owe on it? How many payments have you made and how many are left.

Packet

Sorry,

i will have a look through the t&c's of the house,

But for the car.....

It is worth around £2000 (present value) and I have about £4000 left to pay. I have missed no payments.

I have been paying for 2 years and have 2 years left to pay

Do you know what would happen to it?

fiveyearplan

It depends what the HP says. For instance in my HP contract it said that if I had paid a third they could not take the car without a court order. I couldn't afford to make the payments so they will be taking it away. I'm sure if you can still pay they will want you to keep it as if they repossessed and only got say £1,000 at auction (probably even less!) and you still owed £4,000 they would be out of pocket. If you're bankrupt that will go in your bankruptcy and they will lose out.

As far as the OR will be concerned, the car is on HP so it doesn't belong to you therefore he will have no interest in it.

I hope all that makes sense.

debt_doctor

Packet wrote: »

Hi all, I am currently in an IVA a few months in now, but I have struggled to make payments on time in recent months.

I know the next step is bankruptcy, but I would like to know what happens next.

I own my own house, but I only own 70% of the home as I entered a shared ownership scheme with a HA. What would happen to the house? Do I still lose it?

Hmm.... Tricky one that. If this is the 'standard' shared ownership scheme then you are a joint owner with the HA. It a bit like having a partner with a beneficial interest of 30%

Wether you would lose it would come down to whether you could get a third party to purchase your share ( 70% ) of any equity in the property.

There may well be clauses that control / limit these actions and you would have to discuss this with the HA.

DD