Car on HP and IVA

o99

Hi All,

Hope you can help, I'm about to embark on an IVA and have a car worth £14k with £18.5k o/s.

I don't want or need the car anymore and the monthly payment is £400.00

Can I just give it back? Will the shortfall be included in my IVA?

c53204

Not an exact answer - but may help. I have just ended my Trust Deed (I live in Scotland). I was allowed to keep my car on HP and even change it - as long as the payments did not increase. When I did change it, I just informed the Dealership of my details and because I had been a customer for a long time, they OK'd it.

I would speak to your IVA accountant and confirm if you could add the amount to your IVA - I would think so.

MIVAA

Hi o99,

Simple answer is yes.

If you have a car on HP that you no longer need nor want, the you can surrender the car to the finance company, which they will sell, and if there is a shortfall, they will be required to make a claim for the balance through your IVA.

You should also be aware that your disposable income will also increase by the amount you were paying the HP agreement, and consequently you will be expected to increase the IVA contributions by the same amount.

hope this helps.

MIVAA