My car is dying and I have an IVA! Help!

Peanutbuttertoast

I'm in an Iva. I'm Single mum to two children, I work part time and claim UC top up.

I live by myself (with my children). I rent via the council and I own my car outright. 

Just covering the basics incase they’re relevant! 

I have a car. She's an older car but I've had her a long time so I know where I stand with her. A few weeks ago it broke down and is going to cost me ALOT to get fixed. I can do soemthing temporary but the top and bottom line is... I need a new car is the not so distant future.

I don't live in a main bus route, I live a drive away from school and work. I don't have family to help me.

I feel like I'm just stuck in between a rock and a hard place. There doesn't seem to be any opportunity for me to earn any money to save for my car. If I hammered some overtime (between the sparse childcare I have!!) at work my UC would drop and any left overs I get would have to be put in my IVA. My Iva only allows me a very small amount a month to "save"…. Absolutely not enough to get a car!

I just am filled with so much anxiety and sadness. I am trapped. I am watching everyone live their lives and doing wonderful things and I'm counting the pennies to buy ice creams on trips to the park. 

How can anyone actually save up for anything in Iva's?! I'm a year into it.....


Before anyone mentions it, I did ALOT of research into debt solutions and I am happy with my IVA. I was advised a IVA via step change who then suggested a DRO. SC don’t manage DRO so they referred me to Payplan. I had an assessment and I didn’t qualify for a DRO due to my budget so they too recommended an IVA.
bank ruptcy is too risky as it could effect my job. 

Any help or experience would be so greatly appreciated!

Grumpelstiltskin

Honestly if you are renting and in receipt of benefits why on earth did you agree to an IVA instead of a DMP?

Totally the worst you could have gone for.

With a DMP you could have allowed for an emergency fund, built up before you started and enough in your budget to keep adding to it.

If your car is vital you may have to let your IVA fail and use the money to save for a cheap car.

I know you said you did a lot of research but asking on here at the beginning would have given you very different answers.

fatbelly

If you need to stop paying the IVA then do so. You will still be protected by it until it is terminated, which can take 6-12 months.

If you are able to get a temporary fix on the car then you could discuss lowering your monthly payment with your IP. I think they have discretion to do this without reference to the creditors, up to a percentage.

Payplan were not a good choice to discuss a DRO with. They do very few and seemingly would rather direct people to an IVA even when they have no asset to protect.

The main suppliers of DROs are CAB (who take a very strict and laborious approach to them) and Money Wellness (who do the opposite)

Peanutbuttertoast

DMP would have taken my 30 plus years to clear. Obviously I would’ve hoped my income would improve as children get older but I can’t have that over my head throughout their infancy. DMP would also have a much longer effect on my CR as I would be in it longer. At least this way in 3.5 years I can start a new finical chapter.

I understand your opinion but as I said I did a lot of research and I’m happy with my decision. An IVA gives me an emergency budget like the DMP does but it’s something ridiculous like £30 a month. I can’t save for a car or car repairs of £2000 plus with that.

fatbelly

Hang on. I didn't suggest a dmp and didn't criticise your choice of iva. 


Let me summarise my post in different words.

If you need a large sum of money to replace the car urgently, stop paying the iva and save. The iva still remains in place

If you can do a temporary fix on the car, talk to your ip about lowering the monthly payment as it sounds like it has been set too high.

Peanutbuttertoast

Thank you @fatbelly, sorry I think e cross posted so I didn’t see your reply when I posted. 

I read reviews at the time which is why I went with Payplan! They’ve been supportive so far so I guess I just hope that continues. I would like to proceed and complete my IVA, but I’m just finding the control and monitoring of my money difficult. I just wish I could take a finance on and an emergency, but I know I can’t and even if I was allowed it’s be ridiculous interest! 

My monthly amount into my IVA is low, I am going to update my budget this week so I guess a call to them would be helpful. Annoying they’re closed on bank holiday!

Peanutbuttertoast

fatbelly said:

Hang on. I didn't suggest a dmp and didn't criticise your choice of iva. 


Let me summarise my post in different words.

If you need a large sum of money to replace the car urgently, stop paying the iva and save. The iva still remains in place

If you can do a temporary fix on the car, talk to your ip about lowering the monthly payment as it sounds like it has been set too high.

Another person above you mentioned DMP! They was what I was referencing . I think we just cords posted!

Grumpelstiltskin

I know you say a DMP would have taken 30 years but you would have found out down the line you could have gone for small full and final payments that is if the debts were enforceable, did you send CCA requests and were any approaching statute barred ?

Also a DMP is not insolvency, the IVA will show up as an insolvency solution where a DMP will not.

Peanutbuttertoast

Grumpelstiltskin said:

I know you say a DMP would have taken 30 years but you would have found out down the line you could have gone for small full and final payments that is if the debts were enforceable, did you send CCA requests and were any approaching statute barred ?

Also a DMP is not insolvency, the IVA will show up as an insolvency solution where a DMP will not.

I understand what you’re saying, but when looking at the bigger picture and all of my perosnal circumstances picture a DMP wasn’t the right thing for me.

Grumpelstiltskin

You do realize that as you don't have a mortgage you will probably have to pay an extra year on your IVA, was this explained to you?

Peanutbuttertoast

My IVA was accepted at 5 years and that’s what’s in my terms and agreement. 

I know you’re trying to help but this post really was to get advice from people who have an IVA and need an emergency fund and not why I took one out.