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  • FIRST POST
    • liamjay
    • By liamjay 9th Apr 18, 10:45 AM
    • 2Posts
    • 0Thanks
    liamjay
    Voluntary Surrender or Termination
    • #1
    • 9th Apr 18, 10:45 AM
    Voluntary Surrender or Termination 9th Apr 18 at 10:45 AM
    Hi all,

    Im just after some advice….

    I am currently in a IVA and when it was accepted allowances were made for my car payment to black horse.

    To cut a long story short, things have changed rapidly and my income has stayed the same, well it’s actually due to go down and my expenditure is going to rise. This means that I can no longer afford the vehicle that the allowance was made for.

    Im ok with that, My dad is going to gift me an old car to be able to run, and on completing my income and expenditure form, if I get rid of the current PCP vehicle then I can still afford to live etc and afford my payment to my IVA.

    I have spoke to my IP and they have said that I can terminate the agreement with BH and the negative debt will be passed on to my IVA as it was taken out before the IVA was accepted.

    (So I get all that)

    However……

    I have spoke to BH over the last couple of days and they have told me that I must write a letter Voluntary Surrendering the vehicle, drive it to an auction house and they will pass the liabilities to my IVA.

    BUT.

    The figure is massive!

    I purchased a car on a PCP plan for £31,650.98 with zero deposit
    The total I would have to pay would be £38,207.62 (including balloon)

    My monthly payments are 47 payments of £455.46 followed by a final payment of £16,801.00

    I have currently been in the agreement for 12 months (again circumstances changed quickly due to no fault of my own) So that is £5465.52 I have paid.

    My current settlement on the Vehicle is £28,846.49

    The vehicle is worth currently £24,000ish trade value.

    They have said I need to Voluntary Surrender the car and my liability is £14093.75 which will be passed on to the IVA.

    BUT how is this if my settlement is £28,846.49, shouldn’t it be closer to £4846.49?

    Is this the same as a Voluntary Termination? or is that more expensive/cheaper?

    Im just a bit stumped how my settlement can be 29k and they get 24k back and still want the remaining settlement including interest when I no longer pay monthly or have the vehicle?

    I need to get this sorted, as my insurance for the car is due in a week and I do not want to/can afford to insure it.

    So should I voluntary terminate or surrender. im so confused.

    Please advise and thank you in advance

    Also just to add, as this might change things quite a bit, I received a letter from BH when I did my IVA saying that they intend to terminate my agreement on 27th March 2018 under section 76(1) of the consumer credit act 1974 as I had made an application for a voluntary arrangement.
Page 1
    • sourcrates
    • By sourcrates 9th Apr 18, 11:26 AM
    • 13,759 Posts
    • 13,083 Thanks
    sourcrates
    • #2
    • 9th Apr 18, 11:26 AM
    • #2
    • 9th Apr 18, 11:26 AM
    Hi,

    If they are adding the debt to your IVA then it matters not a jot what price or settlement figure they quote you, as you wont see a penny of it anyway, and neither will they.

    They will only receive whatever % payment your IVA pays them.
    Last edited by sourcrates; 09-04-2018 at 11:49 AM.
    I'm a Board Guide on the Debt-Free Wannabe, Credit File And Ratings, and
    Bankruptcy And Living With It, boards. "I volunteer to help get your forum questions answered and keep the forum running smoothly".
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.

    For free debt advice, contact either : Stepchange, National Debtline, or, CAB.
    For Free Legal advice see : http://legalbeagles.info/
    • liamjay
    • By liamjay 9th Apr 18, 12:05 PM
    • 2 Posts
    • 0 Thanks
    liamjay
    • #3
    • 9th Apr 18, 12:05 PM
    • #3
    • 9th Apr 18, 12:05 PM
    So it don't matter what way then.....

    on another forum they were telling me do not under any circumstances VS only ever VT and I can not see what difference it makes as i am nowhere near to the 50% mark anyway, so either way VT to VS there is only a 500 difference, is anything i would have thought VS would be better.

    So confusing
    • MEM62
    • By MEM62 9th Apr 18, 1:20 PM
    • 1,529 Posts
    • 1,154 Thanks
    MEM62
    • #4
    • 9th Apr 18, 1:20 PM
    • #4
    • 9th Apr 18, 1:20 PM
    The difference in your figures is easy to explain.

    You are basing yours on achieving the trade-in value for the car. The finance company will base theirs on what they are likely to receive at auction after costs -which is, of course, much lower. But as advised, the impact on your situation is minimal, if any.
    • matt1976
    • By matt1976 9th Apr 18, 1:28 PM
    • 6 Posts
    • 1 Thanks
    matt1976
    • #5
    • 9th Apr 18, 1:28 PM
    • #5
    • 9th Apr 18, 1:28 PM
    VS is when you have not paid enough (50%) and VT is when you have paid the 50% mark. If you've not paid enough and you can't afford it, the only solution open to you is to VS. Either way by entering into an VIA it will affect your credit file for 6 years.
    • sourcrates
    • By sourcrates 9th Apr 18, 1:34 PM
    • 13,759 Posts
    • 13,083 Thanks
    sourcrates
    • #6
    • 9th Apr 18, 1:34 PM
    • #6
    • 9th Apr 18, 1:34 PM
    It wont matter what you get as the debt will go in to your IVA, plus if you were to get any cash back it would have to be paid into the IVA for the benefit of your creditors.

    Different rules apply when you are insolvent.
    I'm a Board Guide on the Debt-Free Wannabe, Credit File And Ratings, and
    Bankruptcy And Living With It, boards. "I volunteer to help get your forum questions answered and keep the forum running smoothly".
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.

    For free debt advice, contact either : Stepchange, National Debtline, or, CAB.
    For Free Legal advice see : http://legalbeagles.info/
    • Xbigman
    • By Xbigman 9th Apr 18, 6:21 PM
    • 3,064 Posts
    • 1,314 Thanks
    Xbigman
    • #7
    • 9th Apr 18, 6:21 PM
    • #7
    • 9th Apr 18, 6:21 PM
    Hi all,

    Also just to add, as this might change things quite a bit, I received a letter from BH when I did my IVA saying that they intend to terminate my agreement on 27th March 2018 under section 76(1) of the consumer credit act 1974 as I had made an application for a voluntary arrangement.
    Originally posted by liamjay
    That part changes everything as the agreement is terminated anyway. Ask BH when they are picking the car up, its their problem now.


    Darren

    PS check your insurance as you might no longer be able to use the car legally.
    Xbigman's guide to a happy life.

    Eat properly
    Sleep properly
    Save some money
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