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I am employed on a paye scheme part time ( 2 Nights a week )and am also self employed doing bookwork and accountancy work for small business's and have two overdrafts with he Banks and also have a car on a hire purchase agreement - if I went for an IVA would the banks and HP company have to be informed or can I legally keep these to one side ?

Hi ray and welcome to the forum

You must included all of your creditors in an IVA. But your car hire purchase payments will continue, as they are a secured creditor, and therefore need not be informed as their rights are not affected within an IVA.

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 there Ray

I agree with Melanie, unless the bank overdrafts you have are very small, you will have to include them in an IVA.

Your car HP can be kept out of the IVA - ie you will keep paying for your car as part of your normal expenses budget. There would normally only be a problem with this if the car is a very expensive one and the monthly payments are more than your proposed monthly IVA payments. The creditors would find that difficult to accept!

I would advise you to double check to make sure that your car finance is truely an HP agreement. Give the finance company a call and check. Often people think the agreement is HP when actually it is a simple loan agreement which must be included in the IVA from the begining.

I hope you find this forum useful

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