Question re IVA and HP on car

bunnygirl007

Hi

I'm bracing myself to apply for IVA and last night was reading through some info on the types of debt it can be used for and found it can't be used for HP!

Have I misunderstood this or is that right? I have approx £1000 left on my car HP - due to complete in August. If I do an IVA will I just continue my payments as usual on the car?

If that's the case it would be ok I think, the biggest problem is my CC's with the increasing interest rates. So far I haven't defaulted but the way they have set up the interest repayments on purchases and BT along with recent 5% interest rate increases means my debts aren't going down hardly at all and its getting harder and harder to meet the payments so its only a matter of time before I can't make them,possibly next month even, so that's why I'm looking into IVA now.

Thanks

spenderblender

You are allowed to have a car up to the value of 5,000 and you can keep paying the hp payments. They will however calculate the payments you are now paying on HP into the IVA from the date you stop paying for the car.

bunnygirl007

Thanks Spenderblender. So what you're saying is that if I'm currently paying £150 on the car and then that finishes in August after that they would increase my IVA payments by £150?

If i had a car on HP with a longer term i.e it had only recently been set up would they make me give it back even if the vaule was under £5000 or would I be able to keep paying for it until paid up?

spenderblender

So what you're saying is that if I'm currently paying £150 on the car and then that finishes in August after that they would increase my IVA payments by £150?

Yes, we are paying £203 for our car and they want us to add that to the £300 we are paying now at the end of hp agreement.

If i had a car on HP with a longer term i.e it had only recently been set up would they make me give it back even if the vaule was under £5000 or would I be able to keep paying for it until paid up?

This would all depend on the creditors, we had had our car for 11 months on hp before we set up IVA but were allowed to keep it if worth under 5000

bunnygirl007

Its very scary isn't it? I haven't defaulted on anything yet but only by the skin of my teeth. Its the RBS and Egg CC interest increases that are the final straw for me and i just can't see any way out if they keep hiking things up. I'm paying over the minimum but the interest still seems to take just about everything.

To be honest I'm absolutely scared stiff of going down this route, I can't imagine not being able to have a CC - the thought of being without one makes me feel quite emotional but on the other hand i know i can't keep this up much longer. I get all determined and then say right that's it I'm going to sort it and then i walk into the kitchen see my cooker or washing machine and think OMG what if they break down how will I manage to pay for a new one without credit? Likewise if anything goes wrong with the car - its on 79k mileage and is really ready for changing plus the large engine gobbles petrol so could do to downsize but in this situation i don't see how i can - unless i manage to do it before IVA - but think that would not be posible? Very naughty but at least I'd have reliable-ish transport and less petrol/tax/insurance to pay:o

spenderblender

You really need to speak to one of the debt charities who will advise the best way forward for you. I entered into an IVA because I was struggling to pay my ccs and when I informed them they just hiked up the interest so it made it impossible for me to pay them.
I am now sorry I entered into an IVA and we are now going for BR as we have no valuable assets and rent our home. I only wish we had done it first.

bunnygirl007

Thats the situation i'm in although i haven't approached any of the cc's yet. I keep switching from IVA to BR as i read through the forums.

I contacted PayPlan this evening and have an appointment for Thursday - can't believe i've finally done it.

I would go for BR as it seems you're back on the road to recovery much quicker and also they sound like they're more generous with your day to day expenses. However I'm worried about who will see it in the paper. I don't have any close friends locally that i can imagine checking the papers for BR's but its the ones who know my mum that i'm worried about - people round here can be so gossipy if you know what I mean and i'd hate to think of the embarrasment/shame it may cause her (she is 80 and worries so much already). What papers does it go in local or county or both? I'm assuming there is only one County Court which is in the city therefore about 30 miles away - if it only goes in that paper then i may go unnoticed.

Also not sure about work - i work from home and go away for meetings quite often so i'm required to have a corporate cc for expenses - no credit check its given automatically and we have to clear the balance every month, strictly for business expenses only. The other thing is my car, although i work from home i still need it to get around - we live 7 miles from nearest town in little hamlet, i also need it to get to train station etc when i have to travel for meetings.

How far down the BR road are you? Best of luck with it.

fnc6810

1. If you need the car for work they cant really take it away. You need it to work to pay money into the iva. So they would cut of their noses

2 If it was included in the iva the finance company would just reposes it

3. If you didn't need the car you say the payments finish in august
Send it back.
A littile clause in your HP contract So long as you have paid at least half and kept the vehicle in reasonable condition you can send it back and not pay another penny towards it

Ok you've lost the car and paid a lot of money on it but in theory it wasn't yours anyway until the last payment. Watch Out for wording Reasonable Condition, your interpretation will differ it also needs inspected by the Rac or AA
Best of luck
fnc6810