IVA. Do you have to include all of your debts

[jamie]

Do you have to include all of your debts in an IVA or just some of them? For example, I have a loan and a car on finance. I want to include the loan in the IVA, but not the car payments.

[Skippy]

Hi Jamie and welcome to the forum. Is your car finance secured on the car? If it is you cannot include this in your IVA and you will need to make a provision for the payments in your income and expenditure. Once the finance is paid off you would then be expected to increase your IVA payments.

You need to check the terms of your finance agreement, and I seem to rememeber someone saying that some car finance is in the form of an unsecured loan, which would then have to be included.

Onwards and upwards!!!

[MelanieGiles]

Great advice Skippy. Do check the terms of your car finance agreement to determine whether it is a hire purchase agreement or an unsecured loan. If the latter, then it needs to be included within the IVA proposal.

It is really important that you include all debts within your proposal, as if anyone is left out technically you will not have any legal protection against them continuing to pursue you.

If you only have one loan, and no other debts, an IVA will not be possible.

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

[jamie]

Hi Skippy13 and Melanie.

Thanks for your replies. I am 99.9% sure it is secured on on the car but I will double check.

My current debts not including the car are 1 loan, 2 overdrafts and 3 credit cards.

[jamie]

Actually, to expand on my problem, it is actually my loan which is causing the most problems. I fell behind in payments, and so to make them up I have to make double payments for the next three months. However, i am finding it hard to make one payment let alone 2.

[MelanieGiles]

Sounds like you just have a temporary problem there, Jamie. Suggest you speak to the loan company and explain you cannot afford the current level of payments, but tell them what you could afford to pay. The arrears can then be addressed over a longer period, thus avoiding the need for an unecessary insolvency.

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

[jamie]

Hi Melanie,

Thanks for your reply. I have spoken to them once and they have said they cannot reduce the monthly repayments to below what they currently are. I also have payment protection, and a couple of people have suggested getting rid of it as it's not worth it.
Would you suggest I request this, and also do they allow you to cancel your payment protection?

Thanks

Jamie

[iva experts]

Hi Jamie,

I would look around and seek some advice about your current debt situation, if an IVA is not suitable for you, you may be able to enter into a Debt Management Plan (DMP) with your creditors.

A DMP is an informal payment plan with your creditors, where your disposable income (amount you can afford to pay your creditors ie: living expenses less your income) is offered to your creditors on a pro rata basis.


Hope this information is of use

Regards. IVA Experts

[MelanieGiles]

With regard to the payment protection, you will need to talk to the loan company directly with regard to your options. Who are they by the way?

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

[jamie]

HSBC