Car Finance

[JoshuaLouie20]

Hi

I have had car finance agreed and am waiting to pick up my car in 6 weeks. I have now decided to start the process of an IVA for my credit cards. My IP has told me that doing this will not affect my car finance. Is that correct that I will still be able to go ahead with the car finance.

Thanks

[Foggy]

It might well be that your IP isn't worried, from the point of view of the IVA, but he cannot speak for the finance company funding the purchase! I assume that the IP is happy about including the car payment in your essential outgoings, so it will be allowed for in your income and expenditure calculations. The loan itself, being secured on the vehicle, will not fall under the terms of the IVA.

However, the big bug in the ointment here, is the attitude of the finance company. Many have insolvency clauses in their agreements, although not all of those who do actually decide to operate them. Only your finance company will be able to say --- but be prepared for the car to go ( or not actually get delivered ).

I would be worried that the IP feels he can speak for something outside of his control and seems unaware. or unworried, of the ramifications. Might I ask which firm you have been speaking with.

[JoshuaLouie20]

Hi

I applied for it with quality insolvency services but have now withdrawn from it as I was in my 14 day cooling off period. I just got the sense the weren’t the right people to do it with.

[WallE]

I would be cautious, as many creditors will see it as recent use of credit and reject your IVA on that basis, despite the secured debt not actually being bound by the IVA.

[JoshuaLouie20]

I have decided to withdraw my Iva as it wasn’t the right thing. I’m all clear and just happy to be able to just continue as normal. IVA was totally wrong idea for me.

Thanks for your help.

[Foggy]

Good luck going forward Joshua.

[kallis3]

Agree and good luck - hope the new car is a good one!