yet another IVA question please

matthew_s

Ok, me again lol, ive told Payplan i wish to do an IVA with them, someone from their team is going to call me sometime this week to start things rolling - a weight off my mind that something is starting to happen,

ive been reccomended i do an IVA even tho i just currently rent a house, some people have said this is not the best thing i do ?

i currently own a second car, ive had it for 8 years now and its only used in the summer,

the question is, will it be like the OR in bankrupcy where they look at my past finacial dealings and can take things back ? we all would love this car to stay in our family and was wondering if i signed it over to say my partner or my father before starting the proceedings weather it would be safe ?

if it has to go then it has to go i suppose lol

Thanks everyone .................Matt

MIVAA

I assume that when Summer comes along you park your main car up and get out the other.

Potential issues lie around the costs of insurance, maintenance and running costs for both cars, which could be seen as extravagant if having both are a drain on your resources. Don't forget that creditors will be expecting you to demonstrate to your IP that you're repaying what you can afford, after your reasonable living costs have been deducted from your income, so try to focus on sharing the allocated running costs between both vehicles, the important one being the cost of insurance, if possible, therefore minimising the impact on the size of the IVA contribution you'll be able to make.

Also, just signing it over to family would potentially cause issues for you if the car had a reasonable sale value. As the 2nd car could be deemed as a luxury, Payplan would need to assess at the monetary value of the car, and assess whether your creditors would demand it was sold as part of their terms that the IVA can go ahead. But just as in a bankruptcy, if you found they wanted to sell it, you could arrange to have it bought by a family member, so long as the price paid was accurate and not under the real value. Your family member would then own the car, the money from the sale would then go into the IVA, but you would retain use of the car as and when you wanted to.

I hope this helps,

MIVAA

matthew_s

Thanks for the reply,

the car isnt going to be used for a good while now so its got no tax to pay, no insurance and no m.o.t.

its just being parked up in the garage and going no where to reduce running costs

stupid question this i realise but do i even have to tell them about the other car if theres no expenditure for it ?

Matt

MIVAA

What's its value?

matthew_s

its value is about £3000, but also its in bits at the moment and has been for the last 18 months, the engine is out of it and other essential things removed and needs a minimum of £600 to get it running again, ive had no money to do this since it did break

Matt

RAS

So

You would not get £3000 for it in its current state? What would you get?

thegrimreaper

to be honest if the car is in bits in the garage and has been for the last 18 months, im guessing its going to need time and money to put it back on the road, so as ras said its with the best will in the world not going to be worth 3k, and in light of the current situation alot of people are in with money are you even going to be able to sell it ? also what is your main car worth as that could potentially have a bearing on it as well?