There is often a clause in car finance contracts that they can be terminated if the borrower becomes insolvent. So whether or not you carry on paying, some car finance companies will choose to repossess in an IVA. I have heard that this may happen more with high second hand car prices.
You really do need to take some professional advice and your IP should be supporting you.
It's going to be a rocky couple of years for people so support from those around necessary albeit reassurance if not financial support is goingbto be welcomed I am sure.
Let us know how it goes.
Sharing from experiences of dealing with debt
There is a solution for everyone .... Just need to stay positive !
Wed Apr 13, 2022 6:37 pmbowline wrote:
There is often a clause in car finance contracts that they can be terminated if the borrower becomes insolvent. So whether or not you carry on paying, some car finance companies will choose to repossess in an IVA. I have heard that this may happen more with high second hand car prices.
So looks like if I enter IVA they take the car even if I'm paying it?
DEFAULT AND TERMINATION
If any of the following events happen, it will be an event of default allowing us to give you notice (subject to any notice we are required to give under the CCA) to end this agreement:
if you do not make any repayment due under this agreement on time;
if you break any other term of this agreement and (if capable of remedy) fail to remedy the breach within 14 days of us giving written notice to you;
if you are unable to pay your debts as they fall due or if a petition is presented or if you become bankrupt or in our reasonable opinion appear to be insolvent or unable to pay your debts as they fall due;
This is a pretty standard clause in most agreements, but, as I mentioned, not all lenders act on it as, in an IVA, unlike the bankruptcy they mention, the HP payment would be an allowed expense (depending on agreement from creditors) and would be allowed for in your budgeting.
Unfortunately it is a "suck it and see" dilemma --- you could try asking your lender by phone, anonymously (don't call from your own phone, though, as they could trace you via caller ID and customer records).
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Tue Apr 19, 2022 5:17 pmFoggy wrote:
This is a pretty standard clause in most agreements, but, as I mentioned, not all lenders act on it as, in an IVA, unlike the bankruptcy they mention, the HP payment would be an allowed expense (depending on agreement from creditors) and would be allowed for in your budgeting.
Unfortunately it is a "suck it and see" dilemma --- you could try asking your lender by phone, anonymously (don't call from your own phone, though, as they could trace you via caller ID and customer records).
