URGENT advice for IVA

Stressed_NW

The property surrendered is just in my name. Theres 3 an half years left on car hp at £200pm. A lot can change in 3 an half years and cost of living will go up. What would happen if changed car now before iva set up and got newer car with same monthly payments but increased term of 5 years??

Stressed_NW

Mortgage company taking house back over the next 3 days (cant wait). Had meeting with IVA case worker on Monday to go over I/E. Hopefully going to start drafting soon.

kris147

Good luck man!

Stressed_NW

Thanks Kris. This is where im upto so far. The house has gone back to mortgage company. IVA been drafted for my acceptance. Shows me paying back £150 pcm for 3 years then £400 for remaining 2 on a £40,000 debt. Reason for this is that car hp of £250 finishes in 3 years. Bit concerning as car is 5 years old now and will need new one by then. Are these figures set in stone? Any help greatly appreciated and thanks in advance x

longtermplanner

Stressed_NW wrote: »

Bit concerning as car is 5 years old now and will need new one by then. Are these figures set in stone?

If something unexpected happens, then it is sometimes possible to make changes, but this may require a new vote of your creditors and may involve your IVA being extended to 6 years.

But your car getting old is not going to be an unexpected item - you KNOW it will happen. You need your car for work and you do a highish mileage. So you therefore need to sort out a way to live with this or find a way around it now, not just hope it will all be ok in a couple of years time.

For example, you could reasonably argue that you need a larger provision for car maintenance for the last 3 years of your IVA as the car will be so old by then.

Find_The_Real

The figures will depend on your disposable income so they amount is just a guide and not set in stone depending on your yearly review. NRAM usually insist on a 6 year IVA so you may want to consider that for your figures as well, especially as they will have the majority voting with the shortfall amount.

Stressed_NW

Thanks for the replies. I asked about the 6 year iva thing. Was informed that this was only the case if a house involved and equity that couldnt be released. Does the 6 years have to be agreed at the beginning or can they move the goalposts?

Find_The_Real

I'm not 100% sure but I think it would be part of the modifications should the IVA be accepted, however someone else may have the definitive answer as my IVA with NRAM as a creditor was a F&F but I am sure my IP mentioned it would be a 6 year if I hadn't gone down that route due to the shortfall.

FiatFan_2

I think the extension to 6yrs comes at the 54th month IF you cannot raise enough equity in a mortgaged house. But as you're going the same route as we did, giving up your house to rent, means it should be a clear 5yrs without that complication. Whether your IP allows the NRAM to extend it to 6yrs will be for them to fight your case.

Our iva is set up similar to your proposal in that when the car hp finishes those payments go into the pot. We received a 1month "emergency" payment break to repair 1 of our cars at MOT time and this payment is added to the end of the 5yrs. I would expect your 5yr old car to make it through the next 5yrs, if you've high mileage argue for a higher maintenance and fuel budget.

I'm trying to save my kept overtime so when my 16yr old car finally gives up it can replaced by an 8/10yr old as my IP won't allow credit for another. The 8yr old car should get us through to the end, the wife intends on replacing it once we're out the iva with a lease car instead of purchasing. Possibly where a bit better research into IP's would have come in handy lol

Stressed_NW

Cheers guys. Also regarding the increase in salary. IP account manager infomed me that the 10/50/50 rule should apply to actual wage rise, not just overtime/bonuses etc. Theres nothing in the proposal regarding this. Any views?