www.iva.co.uk

we purchased a car on a HP agreement a few months ago- would this be affected if we took out an iva

Hi jennifer p

So long as the car is not of excessive value, you ought to be able to keep it and continue to make the payments - as his is a secured creditor whose rights are not affected by IVA proceedings.

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

As long as you can justify a need for the car (i.e. work travel etc) and the car or the HP payment is not of excessively value this would often be acceptable to be continued to be paid during an IVA. If the HP agreement (notwithstanding any balloon payment) should be paid off before the end of the IVA term this money may have to be then reapportioned to your IVA each month.

Best Regards
Oliver

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

Can I ask what is classed as 'excessive'?
Our car payments on HP are £274 per month, we have been paying them
for just over two years. If we enter into an IVA would this be classed as too expensive? Extremely worried as we cannot get to work wothout the car, I travel 18 miles to work and my husband has to cycle!

Unlikely - but each case is reviewed on its own merits. And if the HP agreement is due to expire over the next five years, your creditors will most likely expect to see increased contributions from the cost savings.

But if you default on even 1 payment to the HP company, they have the right to repossess the car even if you have paid over the third