if i go through with the IVA can they take my car

[gem8]

Hi I roughly owe 40k to around 9 creditors, I dont own a house, if i go through with the IVA can they take my car off me?

[MelanieGiles]

Hi gem8

Cars are rarely affected in IVA's, unless they are of very high value and there is no justification for driving such a vehicle. Cars are essential for getting to and from work, so it would be silly for your creditors to say they want it sold.

I recently got IVA's accepted for husband and wife who drove two LandRovers, with no bother from the creditors.

Good luck with your IVA.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[Sopty]

Hi gem8,

Just to echo Melanie's comments, I had my IVA accepted today, and I have an 18 month old car, its only a fiesta, so not a high value, but there was no pressure to sell it as I require a car to get to work.

Cheers, Mark.

IVA accepted, so 60 months to go!!

My one bit of advice, if I can do it, so can you!

View my IVA story blog at: http://sopty.blogs.iva.co.uk

[Oliver]

As Melanie says, if you can justify a need for a car, i.e. driving to work, taking children to school etc.... you will almost certainly be allowed to keep the car and have a budget for the associated costs of running it, petrol, tax, insurance and maintenance.

The only exception to this would be if your creditors believed your car was too high in value in which case you could be asked to sell your car and buy a cheaper model giving the excess funds from the car sale to your creditors. There is no specific rule on the value of a car allowable in an IVA, as Melanie said you can sometimes find that some cases go through with high value cars such as Range Rovers. I would estimate that any car over £4000 would be up for potential scrutiny by the creditors.

Comparatively in Bankruptcy I believe that the court can ask for any vehicle over £1500-2000 to be sold and a cheaper one bought, luckily in an IVA this is not enforced as strictly.


Best Regards
Oliver

Thomas Charles and Co Ltd.
Experts in personal debt solutions.
Read customer feedback at: www.thomascharles.com/about_us.asp