Can I keep my car on HP if apply for IVA?

Jobfromhome

Hi, all so the cost of living has swamped me, problem is we were in an IVA about 5 years ago as well sadly ended up like this again mainly due to pandemic, cost of living and some high-interest loans. Yes I know I've made a mistake again :-(

I thought a DRO would be good, but not sure can keep the car, and also debt management plan was going to try but IVA might be best.

Going to contact step change, but before I do a bit of advice.

I have a car on HP it's worth £7,500 we really need our car for a number of reasons and living in a village would we be able to keep it?

Also, I have a loan through commsave credit union are these allowed in an IVA?

Thankyou for the advice.

sourcrates

You can only have a car worth £2000 in a DRO, an IVA would protect your car. so long as its value was not excessive.

In a DMP you can virtually make up your own rules, they are quite flexible, so again, car would not come into the equation.

How much debt are we looking at this time ?
Are you a homeowner ?

Credit unions don`t like any form of non payment and its very likely they will secure there monies via a judgement from the courts, some are more agreeable than others, but generally speaking they won`t cooperate much with you.

Jobfromhome

sourcrates said:

You can only have a car worth £2000 in a DRO, an IVA would protect your car. so long as its value was not excessive.

In a DMP you can virtually make up your own rules, they are quite flexible, so again, car would not come into the equation.

How much debt are we looking at this time ?
Are you a homeowner ?

Credit unions don`t like any form of non payment and its very likely they will secure there monies via a judgement from the courts, some are more agreeable than others, but generally speaking they won`t cooperate much with you.

I feel so stupid and disgusted getting into debt again :-(

I rent a house we could handle everything then our cost of living must have gone up nearly 300 plus pounds a month and our daughter has moved out so these changes put us under.

My commsave is 3000
car is 5000

Then credit cards, store cards and little loans are another 10,000

we pay £620 a month and a lot of that is minimum payments.

The biggest credit card is £1300 then mainly all little debts under a thousand.

Think a DMP be better?

Kristina

Jobfromhome

Another thing is I stupidly took a 3k loan out to try to pay a couple of credit cards. Only made a couple of payments will this be accepted into the IVA?

Thanks 

sourcrates

Jobfromhome said:

Another thing is I stupidly took a 3k loan out to try to pay a couple of credit cards. Only made a couple of payments will this be accepted into the IVA?

Thanks 

Yes, your not excluded from things just for being stupid lol.

If I'm adding this up right, you have 18k of debt , yes ?

Your not really in IVA territory, especially as you rent and don`t own property, for those reasons alone I would not recommend an IVA.

The value of your car excludes you from a DRO.

However, you can easily cut that £620 closer to £220 with a DMP, self managed may be best, gives you maximum flexibility, pay what you want to, your in charge, its relaxed, and well known by creditors, you can try and save a couple of hundred a month if you can, save it up for use as both an emergency and settlement fund, further down the line.

That would be my strategy.

ManyWays

Most car finance contracts have a clause that allows the lender to cancel the finance and repossess the car if the borrower enters any form of insolvency. Some lenders enforce this, others don't. But it is a risk in an IVA. 

Jobfromhome

ManyWays said:

Most car finance contracts have a clause that allows the lender to cancel the finance and repossess the car if the borrower enters any form of insolvency. Some lenders enforce this, others don't. But it is a risk in an IVA. 

Even if the car is on HP and I decide to carry on paying that? I think can include in my expenses.

sammyjammy

If you self manage a DMP then you won't have any problems with keeping the car and keeping up the payments if that's important to you, please listen to Sourcrates, an IVA is not a good option for you.

Jobfromhome

sourcrates said:

Jobfromhome said:

Another thing is I stupidly took a 3k loan out to try to pay a couple of credit cards. Only made a couple of payments will this be accepted into the IVA?

Thanks 

Yes, your not excluded from things just for being stupid lol.

If I'm adding this up right, you have 18k of debt , yes ?

Your not really in IVA territory, especially as you rent and don`t own property, for those reasons alone I would not recommend an IVA.

The value of your car excludes you from a DRO.

However, you can easily cut that £620 closer to £220 with a DMP, self managed may be best, gives you maximum flexibility, pay what you want to, your in charge, its relaxed, and well known by creditors, you can try and save a couple of hundred a month if you can, save it up for use as both an emergency and settlement fund, further down the line.

That would be my strategy.

Thank you I'm just running through my details at stepchange at the moment. So very stressed with it all.