struggling paying the full car loan amount

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janice.m

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Post by janice.m » Thu Aug 16, 2007 4:42 am
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If part of the total debt is a car loan can the company still repossess the vehicle? I am considering an IVA but I am struggling paying the full car loan amount each month but I need my car to get to and from work.
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MelanieGiles

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Post by MelanieGiles » Thu Aug 16, 2007 9:08 am
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Hi janice m and welcome to the forum

If the car was bought using a normal unsecured loan, then the lender has no possessory rights over the vehicle. Check the agreement to make sure that it is an unsecured loan rather than one of hire-purchase, where the vehicle can be repossessed under certain circumstances.

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
Regards, Melanie Giles, Insolvency Practitioner
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iva experts

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Post by iva experts » Thu Aug 16, 2007 10:38 am
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Hi Janice,

It is important to check whether this car was bought on Higher Purchase or as a finance agreement. If the car was bought with a loan then the company have no rights to possess this car. However if this is a HP agreement then if you fail to make payments the company can come and re-possess the vehicle.


Best Regards. IVA Experts
Best Regards,
Michelle Pontes
IVA Experts
http://www.iva-experts.co.uk/
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Oliver

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Post by Oliver » Thu Aug 16, 2007 10:40 am
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If the car was funded by an unsecure loan then the car is not security for the loan.

Best Regards
Oliver

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