when our IVA proposal was being drawn up, we have a car each, one on straightforward HP and mine was HP with a "balloon" payment at the end, funnily enough it was Picture, the secured loan on the house, (as we wanted to put the shortfall from the house sale into the IVA) who wanted us to get rid of both cars and have none! They said if we did this, we could afford to pay Picture in full over the 25 years! This was rubbish as the man at CAB woked out we had £11 per month left for food, gas, water etc after the mortgage and secured loan were paid!
This was the decision that tipped us into deciding on bankruptcy, if we were to be made to give the cars up anyway.
I have seen it happen once. One client, during the period between convening the creditors meeting and holding it, had the finance company try to repossess both family cars. There was equity in them too. As I say it was a small, tinpot company and those 2 cars probably represented half it's fleet. Fortunately the clients had relatives who took out a loan to settle the agreements.
There's a moral here - if you need more than 1 car, don't finance them with the same company.
Last edited by ianmillington on Tue Sep 23, 2008 5:30 pm, edited 1 time in total.
Ian Millington
Insolvency Director
PDHL Ltd (formerly Personal Debt Helpline Ltd) www.pdhl.co.uk
