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What is deemed an acceptable value of vehicle to keep if you enter an IVA?

Hi Ruthie

There is no real guideline for this but a personal judgement. Obviously if you have a £20,000 car with £10,000 loan outstanding on it then this would be unacceptable in most cases. It simply comes down to the equity, the running/maintenance costs and the circumstances for why one would require a more expensive car.
Have you done an assessment? Have you been advised that your car could be a problem?

Regards
Lee

Lee
www.123debtsolutions.co.uk - 08000 114 123

Ruthie

It depends upon the strength of your need to retain a vehicle of any value.

It is not uncommon for families with large numbers of children to require expensive people carriers, if you are working in a prestigious sales position then you are expected to look the part, or if you live in a very rural area you might need a larger than average 4 wheel drive.

There are no real benchmarks, just common sense and good IPs that justify your case for you!

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 Ruthie,
You have had some good replies here. Also a piece of information I have is under 'Bailiffs laws' that if living Rurally a vehicle could be classed as a Basic necessity, and as Melanie stated if vehicle in higher price bracket and you have ex number children or have a job that warrants a more comfortable vehicle then you may have a case for it. You don't say what your circumstances are or your vehicle value-you could ask your local dealer market value both as private seller and on forecourt price.

For Bankruptcy some say £1500 others say £3500 as ceiling, so similar may apply to IVA. You could argue that a cheaper
secondhand vehicle would undoubtedly require more outgoings for repairs and you would need to have any secondhand proposed vehicle to a reputable garage for inspection underneath for safety reasons so incurring more costs-and you might need to do this on more than one occasion.
hope it helps
razamataz_

ruthie wrote:

What is deemed an acceptable value of vehicle to keep if you enter an IVA?

I was allowed to keep my 04 registered Corsa which was worth approx 4k (although a bit less now thanks to the person who dented my door in Tesco's car park!) but I would have argued that by the time it was sold it wouldn't have been of any benefit to my creditors.

Onwards and upwards!!!