can vehicle loan be exempted from an IVA ?

[david b]

I am a taxi-driver in Cardiff. Over the last 2 years Cardiff Council have doubled the number of Hackney taxis, thus reducing my income by about 40%. I have HP on my vehicle with 3 yrs to go, can this loan be exempted from an IVA, as I need to continue payments to keep my vehicle, and my job?

[Viki.W]

Hey david, welcome to the forum. There have been a few posts similar to this recently. I believe that if you can keep up the regular repayments without it affecing your IVA payments then it shouldn't be a problem, especially as it is needed to make a living. I'm sure an expert will clarify this. Viki X

[Cybus]

David,

You need the vehicle to carry out your work. The HP payment would continue as long as you had the vehicle and would be factored in to your income and expenditure. When the HP comes to an end, in your case, in three years, your income and expenditure would be reviewed.

If at that time, you genuinely need to replace the vehicle, then I would expect that you would be allowed to do so on the proviso that the amount you pay in HP is no higher than the exisiting payment.

If you do not need to replace the vehicle then I would anticipate creditors asking for your contributions to increase by the level of your current HP payment once the HP has run it's term.

[FREEDOM31]

Hi my husband was a taxi driver when we entered into the iva we went through debt free direct who were really good they looked at our income expenditure and included the HP in expenditure what was left was then paid to the iva. we even had a clause saying if the cab needed renewed in 2 or 3 years we could take a further hp agreement so I think it would defo be fine:)

[60andcounting]

Hi David.
I have two cars on HP. I took out the loans before my IVA started, a total of £320. These are excluded from the IVA. But remember that once the loan is paid off you have to put that amount into the IVA and will not be able to get another loan.

[Soulgrowth]

Hi David ... just wanted to say welcome to the Forum

I am self-employed. When I went into my IVA I had a lease car as I needed it for my work. The monthly payments were allowed for in my IVA expenditure. Hope this helps [:)]

Debbie

[Maz]

Hi

When I started my IVA I was told if my car was HP that it was not included in the IVA. But since it was a personal load it needed to be included as part of the debt towards the IVA payments. So if you have a car that is on Hire Purchase it should be allowed as part of the I & E so should be exempted. This is what I was told anyway.

Maz

[MelanieGiles]

Hi David

I also live in Cardiff and my best friend is a licensing officer with the Council - so I am well aware of the number of taxis operating in the city - and those unlicensed ones as well which are ever increasing and are dangerous.

If you decide to enter into an IVA, the HP payments on your car will be treated as a legitimate business expense and the loan will continue to be serviced.