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i have a car on car finance What would happen to the car if i took iva

Hi g.n
I have an IVA and they listed my car as an asset which is not on hp though. I beleive I am correct in thinking that an IVA can only include unsecured debt and you would still have to pay your car loan. If you could obtain a unsecured loan to pay car loan off then IVA would take that loan into consideration, and list your car as an asset. They would not take your car provided it was essential for work requirements. Check all this out first though as I am not an expert,I am just talking about my own experiences.
Good luck hope this helps
james

Hi
just to clarify if your car is on HP finance then you will continue to pay it ouside of the IVA.Once you have cmpleted the payments the surplus money used for the hp will be added to your IVA payments.
If the finance on the car is not hire purchase but a personal loan then this loan can will be included within your IVA and the car listed as an asset unless your Ip requsts that you sell it and purchase a cheaper car.

Quote" If you could obtain a unsecured loan to pay car loan off then IVA would take that loan into consideration"
I would advise against this as you would be taking out a loan knowing that you had no intention of paying it as per the agreement.
Regards

Neverending is quite right, in normal circumstances if you have a car on HP and undertake an IVA, then you will be able to keep the car and keep making the monthly HP payments yourself as part of you monthly expenditures.

Just be careful if the car is a particularly expensive one and the finance payments are high. Creditors will quite rightly not normally accept an IVA where car HP payments within someone's expenditure budget are higher than the monthly IVA payments the creditors themselves are accepting

James Falla

Expert in IVA, Bankruptcy and informal Debt Management solutions for over 10 years.

For more information visit www.jamesfalla.com and visit my blog at: http://jamesfalla.blogs.iva.co.uk