Car finance just cleared. Now the IVA folks want that value on top of the usual monthly amount.

itstricky

I financed a car at £150 per month prior to setting up my IVA.

I'm now three years in and the car finance is settled. My monthly IVA payment is £200. The latest payment went up to £350 and was debited from my account the month after the finance was settled. Is there anyway to negotiate this back down with my IVA company/creditors? I appreciate that I now have more disposable income which should be forwarded on to my IVA but I have been living hand to mouth trying to get through this and it's a real kick in the teeth. Any advice gratefully welcomed. Thanks!

fatbelly

I think you would have to show that some expenditure has gone up...or income down

Fighter1986

As above, send a revised income and expenditure to your IP asking that he review your monthly payment in line with affordability. 

itstricky

Thanks guys. The truth of the matter is I'd agreed to start paying a family member back after the car finance was settled for money loaned to keep said car on the road for the three years. Is this something I could include in my I&E?

mwarby

No definitely no. Creditors will definitely not accept you repaying your family first and in full and not them

Your relative is a creditor like any other, they should be getting payments from IVA (and accepting the implications of that). If they chose not to join the IVA the debt will still be written off

In practice its not uncommon to repay family after the IVA has completed, but you’d be under no obligation to do so. Technically it’s not allowed, but you can’t really stop someone gifting other members of family money

itstricky

Thanks again folks. I'm making up a revised income and expenditure doc for my IP. I'm not quite sure how to word my email to them. I imagine they will roll their eyes and comment how coincidental it is that I've just cleared my car finance and now need to change my monthly payments to the IVA as I have affordability issues. Any thoughts?

mwarby

just be upfront and honest, and that may need to include the family member you promised to start repaying, this isn't something you should be able to afford while IVA is in force.

Gather together evidence of any increases in your cost of living, to demonstrate why the existing income and expenditure is no longer sustainable.

warby68

If you've had to borrow to keep your car on the road then perhaps any allowance for vehicle maintenance could/should be increased as a start.