My car

[thegripper]

Hi there

I am looking at having an IVA, I have finance on my car its worth about £4500-£5000 ( I think).

What will happen to it, will I have to go?

Thanks

[MelanieGiles]

That will depend upon the value of your car, the amount of your repayments and also what disposable income is left to offer to creditors. Is the finance on hire purchase or an ordinary unsecured loan?

In my experience, cars on finance are rarely affected by IVA proceedings, and most are allowed to be retained within the terms of the proposal. Take advice on this from an insolvency professional, who can be a little more specific about your circumstances than perhaps we can on the forum.

[thegripper]

Thanks for the reply,

I think the value of the car is roughly £4000

The repayments are £141 per month

( By the way I have just filled in a form to your company for help)

[thegripper]

Sorry forgot to add, this is on HP with a finance company.

Thanks

[MelanieGiles]

We will be delighted to advise you, and from the information you have provided about your car - providing that it is on hire purchase - you ought to be able to continue making the payments and therefore retain the car. If it is financed by an unsecured loan instead, ownership to the vehicle passed to you upon delivery, and the outstanding debt will need to be included within the IVA proposal.

[thegripper]

Sorry, does this mean then, that I would still have to pay the finance on my car, plus an IVA, plus my share of a mortgage.

Thanks

[kallis3]

If you are to keep the car, and it is on HP, then you would have to keep up the repayments on it as well as your IVA and the mortgage.

[MelanieGiles]

Would you want to retain the car Gripper? If so you will have to fund the ongoing HP payments, unless the car is subject to a loan agreement. If you could confirm what type of agreement it is, our advice will be far more helpful to you.

[thegripper]

The agreement is a Hire Purchase agreement with GE money.

[thegripper]

I would like to retain the car only if I could afford it.

But at the same time I still owe more to the finance company than the car is worth.

[kallis3]

I can only suggest that you sit down and work out whether or not you can afford it.

If you hand it back, I think you can include the debt in an IVA, but what will you do for transport?

[MelanieGiles]

Then if you want to retain the car and your home, whilst making an offer of repayment to your creditors, your budget will need to provide for those payments and leave sufficient to offer to creditors via an IVA or a DMP. Alternatively you could consider bankruptcy proceedings - and an IP will help you to understand all of these options in due course.

[thegripper]

I will really have to look into who can help me now then, its so confusing.

Thanks for the great answers, im very grateful.

Can I just ask one more question then?

My wife has asked me because she has signed for one of my loans with me that need to be dealt with, would creditors be able to take any money out of her account, because I understand that I would have to open a different account with a new bank.

You see I dont want her to be accountable for my silly actions and it will only be me taking out an IVA not her?

Cheers

[MelanieGiles]

It is bound to be a bit confusing if you rely on a forum for specific advice. This should only be given to you directly by an insolvency professional, when they have had had the chance to evaluate your overall financial position.

When you say your wife has signed for one of the debts, do you mean that she is jointly liable for this account? If so, and if you are to enter into any form of insolvency procedure, the creditor is likely to pursue her for the whole debt outstanding. Another reason for taking professional advice at an early opportunity.

[thegripper]

Oh dear, that doesnt sound good at all.

Now I have a major problem, cant have them going after her for money when its not her fault.