Joint car finance, sole IVA

Kawa1

I have a car on finance which I have had since jan 2018, can no longer afford the payments. I have an IVA (in just my name) which ive been in since june 2018.

The finance was taken out in both mine and my now exes names, I want to include this in my IVA, will I be able to if the debt is in a joint name? My ex had nothing to do with the car, he doesnt even drive, but having him on it was the only way my finance was approved.

Thanks!

antrobus

Kawa1 wrote: »

I have a car on finance which I have had since jan 2018, can no longer afford the payments. I have an IVA (in just my name) which ive been in since june 2018.

The finance was taken out in both mine and my now exes names, I want to include this in my IVA, will I be able to if the debt is in a joint name? My ex had nothing to do with the car, he doesnt even drive, but having him on it was the only way my finance was approved.

Thanks!

You might have some ‘joint debts’ which are owed by you and another person, such as a partner.

An IVA can only cover one person, so the other person will still be responsible for the whole of the debt. It may not be a good idea to include joint debts in the IVA.

https://www.citizensadvice.org.uk/debt-and-money/debt-solutions/individual-voluntary-arrangements/individual-voluntary-arrangements-explained/debts-an-individual-voluntary-arrangement-covers/

Craig1981

as IVA was granted, as i read it, excluding this debt, you may find some issues trying to include it.

However, as said above, if it is joint, both parties are liable, so if you dont pay or include in your IVA, they will pursue the other party for full payment of the agreement

PrettyKittyKat

Your IVA has already been accepted so presumably there will have been an allowance on your IVA made for you to pay the HP. What has changed which means you can no longer afford it?

This needs more thinking... you can't just include it in the IVA now as it sounds like it was excluded and an allowance made for you to keep the car.

What will you do for a car if you get rid of the HP?

Your disposable income will go up without a HP payment so your IVA payment will increase also.

If you wanted to include any shortfall I presume a variation will be required to include it as it will be a significant amount so early into the HP, so you would likely have to propose an increased payment by 100% of your increase in DI if there has been no other changes (which is why the REASON you can't afford it is important).

Your ex is liable for any remaining balance once your IVA payments have been received. Only your liability is removed by the IVA. Once it is included in the IVA they will likely contact your ex and ask them to set up a payment.