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If I apply for an IVA will I have to return a car I have purchased under a finance agreement?

Not necessarily, so long as the car is needed for work or family purposes, is of modest value and the HP payments are not excessive. If the HP payments will complete during the IVA, then you can expect to increase your contributions at a similar rate.

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

Hi helen.t,

You will not necessarily lose your car. If you reasonably need your car to work then this will be allowed as a legitimate monthly expense.

Regards,
Michelle P.

If the car was bought with an unsecured loan then you may keep the car (depending on your reasonable need for it and reasonable value of vehicle) and include the debt in your IVA.

If the car is on a secured Hire Purchase arrangment you will possibly be able to continue this arrangement in an IVA (depending on it's cost and net value).

Best Regards
Oliver

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

Welcome to the Forum Helen,

I would double check that your agreement is/is not HP, if your car is on HP then a provision will be allowed in your monthly expenditure. However if you simply got a loan and you bought a car with it then this would be unsecure and would have to be placed with your creditors in the IVA.

They would not take your car away if you need it to get to work etc unless of course you are driving a flashy car which cannot be justified then they could ask you to downsize.

Best Regards. IVA Experts