will an IVA let you continue with car finance

rudeboyroy

will an IVA let you continue with car finance if it is vital to work.

I'm am seriously considering an IVA because of spiralling debts but am self employed, I have a car on Finance that without I would not be able to work(Estate Car) would i be able to continue with the finance if losing the car meant i would lose my job????

any help would be apreciated

donnalove

if the finance for your car is up to date and not a debt to be included then it would be o.k, they do allow for this.but when your finance is finished they will add what you were paying onto your iva payment so that would increase

Debt_Free_Chick

I thought with an IVA you had to offer ALL your creditors a pro-rata settlement e.g. 60p in the £1. The insolvency practitioner is unlikely to arrange a deal whereby one creditor (car finance) gets 100% of his debt settled, but all others only get 60% - the others are not likely to agree to this.

A question for an IP, I think .... or try calling the National Debtline

donnalove

this depends on whether the debt is secured on the car, if it is a personal loan then yes they will probably include it. but if it is car hp agreement then it is secured on the car, they do let you continue paying for these.It does say in our agreement that if we have any secured loans or car finance then we must make sure we meet repayments.
when the finance is finished they will add what you were paying onto your iva payment

mattp_3

Your unsecured creditors will not expect you to give up your car if you need it for work - how else would you earn the money to pay the IVA?

If it is a personal loan, then it is not secured on the car and so it doesnt matter, just include the debt in the IVA the same as the other creditors.

If it is a HP agreement then it must be up to date (or an arrangement agreed with the HP company) so that the payments can be factored into the IVA schedule. If there is a baloon payment at the end then you would need to sell the car to clear the finance or get the HP company to agree to accept monthly payments instead (not very likely to be honest).

Obviously the creds will want to know what car it is - they wont be happy if it of excessive value and once the HP payments end, you will be expected to increase the payments into the IVA.

Hope this makes it a little clearer?