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Posted - 23 May 2020 :  00:01:41  Show Profile  Reply with Quote
Hi... any advice would be greatly appreciated

I spilt up with my partner mid Sept which left me without a car and making it very awkward picking up my daughter from her mums
I already had a large debt owing between credit cards, overdraft and my dad, so was reluctant to take make my debt even worse and i looked at a online debt calculator which recommended a debt management plan, but was going to take a long time to pay off and at the time i mistakenly read that i had to take into account the money i owed my dad, he wasnít happy that he was going to be (as i had thought at the time) getting about £60 a month for 10 years! So he said if there was anyway of me clearing the debt with him he would use the money to buy a car for me to use as long as i pay the running costs and have my mum as a named driver so she could use the car also (they live next door to me)
I managed to obtain £4k from an account i had set up for my 8 year daughter and then cause i still needed to find nearly £3k to pay my dad off fully the only way was to use my credit card which I canít pay my dad directly from my credit card so i paid for the car £7495 using my credit card and then having an agreement written up which we both signed between my myself and my dad that the debt what i owed him is cleared in return for ownership of the car.
What I didnít expect to happen was to then be told less than 2 weeks later i had to be off work for at least 12 weeks due to Covid-19 and for my wages to plummet down about £150 a week! And for my boss to say he might have to make redundancyís (my jobs looking ok) and what staff he keeps will be on minimum contracted hours when this is over.
So all this has put me in a bad position as my furlough money is hardly covering my bills and even though i have got payment holidays on my overdraft and credit cards the interest is still accumulating and now taking me over my limit.
Up until the payment holidays started i had not missed a payment with any of my creditors.
Upon re-doing the online calculator it is now saying an IVA is more appropriate so i built up my nerves and phoned a charity based company for advise and spoke to someone in the IVA department and said that my dad owns the car and how i have used the money from my daughters account (only i have access to this account and its only me who has put money in) to pay my dad back and he has said that in an IVA my daughter has to go down as a creditor and if i decide to go ahead with an IVA and as my daughter is only 8 years old a letter gets sent to my ex partner giving her 3 options on how the debt needs to be repaid, i cant remember what the first 2 he said but I remember the 3rd being it can be gifted to me.
I did mention to my ex that i need to sort my debts out and it is a possibility that she might get a letter asking her to sign it and she wasnít happy and wants nothing to do with it as she suffers with bad anxiety and possibly thinks it will tie her into my problems.
I did also mention to my dad that this is a possibility and he has said he is willing to pay off my so called debt to my daughter by transferring the £4k back into her account.

My questions are
1. Have i done anything wrong in the way i paid my dad back with regards to the car?
2. Is it right that my ex partner could potentially find out all the information regarding my debts if my daughter is classed as a creditor?
3. Is there anything wrong with my dad now paying off my so called debt with my daughter to stop my ex partner obtaining this personal information?
4. What happens if my ex partner does not want to be involved nor for me to give her details out to anybody?

Sorry about the long content but i wanted to explain as much as i can to get the most accurate advice as this is really worrying me and iím now struggling to sleep and eat and my head is spinning

IVA Adviser
IVA Expert

809 Posts

Posted - 26 May 2020 :  11:45:36  Show Profile  Reply with Quote
Hi Doodler2020.

Welcome to the forum and apologies for a slow reply.

I don't think you've done anything especially wrong with the way you have repaid your father. Where I suppose you might be open to criticism (especially if you became bankrupt) is:

1 - Repaying one creditor (your dad) in priority to your other creditors.

2 - Borrowing money to buy the car at a time when you might reasonably have known that you weren't in a position to repay it.

If your daughter were classed as a creditor, I'd think it very likely that your ex would hear about the IVA and see the detail of your proposals.

I can't see any issue for you with your dad choosing to spend his money however he wishes.

Some advisers might take a different view about your daughter's account in any case, so you might want to take a second advisory opinion.

I am a professionally qualified debt adviser. To contact me about starting a IVA please:?Š      
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