IVA and Car written off

stressedtothelimit

Hi there,

so, 4 months into IVa and everything going well, but my car has been in a bad accident and has now been written off. I need to buy a new one, just not sure what the 'rules' are regarding letting the IP know and what I can spend.

EG - paid out £1500 from insurerers, but if my sister GAVE me £300 towards a new one would this be OK? struggling to find an decent car for £1500, mine was in MINT condition so am gutted about it!

I have emailed my IP and am waiting a response - just wondered whether anyone had any experience with this?

trudij

ive changed car twice during my iva - i had to let them know, but my IP were fine with me borrowing the money, I just needed my mum to write and tell them how much she'd lent me, and how I was paying her back.

good luck !

Charco_2

Sorry to hear that.

You'll need a new car anyway (travel to and from work) so there'll be no problem i would imagine.

Use the £1,500 from insurance. If your sister wants to gift you £300 then there's no issue with that either.

There would only be issue if
1. You took further borrowings (even from a family memebr) or
2. If you were going to end up with a car of a value more than £3,000

If you had a generous uncle for instance who wanted to buy you a new car worth £7,ooo then for love of God ask him to keep it in his own name, so it is not an asset of yours.

One other thing, did you own the car you wrote off or was it on HP?

iwannabefree

I had the same dilema about 2 years ago. Wife wrote off the car:(:( Did the usual claim on insurance, turned down their first offer and with a bit of haggling, got top value but like yourself couldn't get anything decent for the money i had. So I spoke to the IP and negotiated a payment break for one month and added this to my new car fund. In the end got a better spec car but with slightly higher mileage, didn't bother me, still have it now and going strong with 128,000 miles.

So to sum up, just speak to your IP, and see if a payment break would help if thats what you want.

Good luck!!

stressedtothelimit

well IP emailed me back and said its fine if my sister gives me some money as long as I don't have to pay it back while I have the IVA and to send them the log book when I get my new one!

Quite easy really - I need to stop worrying about it all so much! I guess I am still trying hard to forget the months of stress from before the IVA:rotfl:

Charco_2

It doesn't hurt to come on here for a bit of confidence in what you're doing or for a second opinion but there's no problem that can't be overcome with a bit of willingness and openness and some discussion with your IP (or his/your supervisors).

Your IP and his staff are on your side really, not least because if your IVA doesn't run it's full course then he doesn't get paid all his fees. But also, i can tell you, from my experience working in insolvency, there's no greater feeling than being able to help or advise people. The panic, fear and depression that people feel about their finances is awful, to be able to help to alleviate that every day gives a great feeling of job satisfaction.