www.iva.co.uk

hi all - i have a friend who is applying for an iva and she has been told by her debt co. that her car loan can be included on the iva as it is not on ho but a bank loan - is this correct and can the car company take the car back as she will be in default? sorry to go on but she is worried! i have just made my first payment and now 59 to go!!!

Hiya,

Yes, as this is a secured loan, the IVA isnt SO concerned with it - however, yes, the finance company will be and will not hesitate to repossess if payments not maintained...

A lot of the time, a car loan will be excluded from the IVA, and you continue paying it as normal until it is paid for, with the proviso that when it is completed, the payments you made to the car company will be paid across to your IVA on top of your original payments.

hi - i dont think it is actually secured on the car - it was a bank loan to buy the car (not sure which bank) does that make difference?

If it was a bank loan, presumably she paid cash to the car sales place? If so, then she should be ok and the loan will be included and she will have no problem with keeping the car.

My car was bought with money from a bank loan, and we still have it.

I would have thought that if it was just a bank loan, as long as it is declared on the IVA then the bank will simply be added to the list of creditors.......

thanks all for your advice!!!