Replacement car while in IVA

adfax

I am about 9 months into my IVA and my car has packed in (turbo blown :mad:) - it was not economical to repair (would have cost £1600 for a car worth £1300).

My brother has very kindly given / lent me the money to replace the car.

How should this be notified to my IVA supervisor (CCCSVA) - I feel I probably should tell them, but I am not sure how best to approach it.

Will I be in breach of my IVA if the money is considered a loan - even though my brother is not expecting me to pay it back until my IVA is complete?

If it is treated as a gift, will this be seen as a windfall which should have gone into my IVA, bearing in mind that my brother gave me the money solely to buy a car - if I wasn't buying a car he wouldn't have given me the money!

He has 'given' me about £4500 (I need a reliable car for work).

Any advice would be appreciated.

JokerDurden

Similiar thing happened with me, I just told my IP why the money was going in and that it was being used to purchase a new car as I needed it for work (so justifiable) and they were happy. They weren't bothered about it either being a loan or a gift as long as it wasn't affecting my payments into the IVA.

Charco_2

email your IP to broach the subject...

keep it short and sweet

Explain that you are having car trouble, your brother has been lending you his but it's not practical to keep this up, your brother is willing to lend you (in the near future, not the near past) the money to buy a replacement car and you will repay the money after your IVA has successfully completed.

End by saying this arrangement will have no affect on your IVA but you would like the permission of your IP before you borrow any money.

There isn't an IP in the country who wouldn't accept this explanation. The car isn't yours until you finish paying your brother... it's a loan or a gift with reservation!

adfax

Thank you both for your replies. I have spoken to my IP and they are happy with this arrangement.

JokerDurden

adfax wrote: »

Thank you both for your replies. I have spoken to my IP and they are happy with this arrangement.

Great, glad it worked out for you

Charco_2

Did they offer it in writing?

You might want proof come the end of your arrangement!

spaceman5

Charco wrote: »

Did they offer it in writing?

You might want proof come the end of your arrangement!

why would he need proof at the end of the iva, surely if the ip has said it`s ok, that`s the end of the matter

Charco_2

You'd be surprised how often IPs "change their mind"

It's not so much the IPs but their supervisory staff... one hand not knowing what the other is doing! I'm not he'd even need to be with a bad company for a problem to arise.

Its good that the IP has agreed this, it makes sense really so there's no reason not to agree it however...

Suppose, this arrangement is forgotten about in four years time (he's in the first year of his IVA now) and suddenly the IP looks and sees that he has a car of value that should be considered for the benefit of the creditors (unlikely in four years time but it's still good practice to get paperwork). Adfax knows what has been agreed now but his IP has hundreds if not thousands of clients (depending on which company he is in an IVA with), no-one is deliberately trying to trip him up but there are rules to play by... perhaps Adfax can convince the supervisor at the time that this was agreed and dealt with, perhaps he cant - would be easy if he had paperwork to prove it.

Suppose his IP went under a bus tomorrow, the IP's work load would be transferred to another IP - if there is no paperwork to prove what Adfax is relying on, the new IP would have a duty to make sure that everything was being done in a fair manner for both the creditors and Adfax.

Suppose Adfax's IVA company was sold to another IVA provider, his IP tranfers the cases to a new IP...

Trust me, I'm not saying his IP would deliberately try to wrong him - hopefully he'll never need to rely on the letter... but wouldn't it be easier if he just put on a belt AND braces now to hold his trousers up rather than waiting for something to leave him exposed somewhere down the line!

adfax

Thanks again for the useful advice - I have got an e-mail from the IP saying this is ok.

Generally speaking I try to make sure anything and everything is in writing - saves problems further down the line!