Hi - I am considering an IVA for all of my debt barr one creditor - I have a credit agreement with Santander for Car Finance which is deducted monthly for my current car repayments - this is update to date regarding payments and I would like to know if I would have to include this debt/creditor in the agreement?
I ask because I would NOT like to include them as I need to keep my car and will be able to afford the monthly repayments (if I didnt pay, I assume the car would be repossessed??) - Thanks Daniela
As long as Santander are happy for you to continue making the payments, and you can afford them as well as any IVA payments then you should be ok. Once the car finance is finished, then that money would be paid across to your IVA.
I recommend that you take some professional advice. Visit www.iva.com for a list of companies and reviews. Give one or two a ring for free and impartial advice as to all the options open to you and the best way forward for your circumstances.
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Hi Daniela. If the agreement is actual hire purchase you will be able to continue to pay it and keep the vehicle. This of course is provided the costs and vehicle are reasonable as creditors would object to £1,000 per month payments for a Porsche!
If the loan is unsecured the debt will go into the IVA but the finance company will not have any charge on the vehicle so they cannot seize it. Check the agreement and if in any doubt ask your IP to read it. Good luck with your IVA.
Hi Barb
It really depends on what type of agreement you have with Santander for the car - whether it is a HP agreement or an unsecured loan. If it is a HP agreement then the monthly repayments will form part of your monthly expenditure in the same way a mortgage is included in your monthly expenditure. If the loan is unsecured instead of a HP agreement then it would need to be included into the IVA.
Once you speak to an advisor they will be able to advise you fully on the agreement.
If the agreement is hire-purchase, you will need to agree to increase your IVA contributions when the agreement has been repaid in full - by the equivalent of the monthly saving.
Usually in my experience if the hire purchase is less than £250 a month then most I.P's would be willing to let it be kept, there are other circumstances where it can be higher dependant on the individuals income & circumstances.
Are you in the debt industry EL123? There are no real markers like this in operation - just common sense tests of reasonableness, and the need of the client to have a particular vehicle for a particular purpose.
