Will car on finance be affected if I apply for an IVA ?

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Jeff.81

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Post by Jeff.81 » Thu Dec 15, 2011 12:40 am
I have a car on finance which i can afford to pay will this be affected if i apply for an IVA
 
 

kazzafunk

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Post by kazzafunk » Thu Dec 15, 2011 1:12 am
Hi Jeff - welcome to the forum. If you need the car for work then there's no reason why you shouldn't be allowed the HP payment as an expense (as long as it's reasonable!). Once the car is paid for, you would be expected to add the HO amount to your IVA payment as this would in effect be more disposable income.

Have you contacted anyone about an IVA yet?
Kazza

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IVA completed 21/03/2012
 
 

Broke of London

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Post by Broke of London » Thu Dec 15, 2011 1:53 am
Hi! You should be ok with the car. Your IP will advise when they have all your details. If you have a balloon payment, you may find it difficult to re-finance so make sure you have a back-up plan. Good luck with your proposal x
 
 

plasticdaft

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Post by plasticdaft » Thu Dec 15, 2011 8:53 am
Is the finance an HP agreement or an unsecured loan(check your agreement)? An HP agreement can often be paid alongside an IVA but if the finance is an unsecured loan then you would have to stop paying it and the loan would be included in an IVA.

Paul
Discharged today the 8th feb 2012. View is much brighter now.
Continuing to rebuild our credit worthiness.
 
 

Tomoose

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Post by Tomoose » Thu Dec 15, 2011 9:47 am
If the car is genuinely required, and it is reasonable for purpose (e.g. you haven't got a £50k Porsche!), then it will probably be included in the IVA as a preferred creditor, i.e. you will be allowed to keep up your full payments to them. However when the finance finishes, you will pay that monthly amount into the IVA.
Otherwise known as "Tom". [:)] IVA proposal currently being drafted by Liberta Financial.
 
 

Tina Shortland

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Post by Tina Shortland » Thu Dec 15, 2011 9:48 am
Hi Jeff - welcome to the forum.

AS Paul says above, it depends on the type of finance as to what will heppen with it but either way you will not be left without your car. A full income and expenditure will be done to ensure your income covers all your living costs including the car if the payment is secured to calculate what disposable income you have left to offer the creditors. If the payment to your car finance is particularly high creditors may request you move to a lowe cost car but that will better understood once you have had a chat with a couple of companies.

regards,
Regards, Tina Shortland, Debt Advisory Manager for Melanie Giles at Debt Advice TV.

If you’re looking for effective debt related information, articles and news, then go now to our on-line advice service at www.debtadvicetv.com

If you’re ready to ask us for specific advice or help, then get in touch at www.call-me.debtadvicetv.com so you can start to free yourself from the stress and anxiety of overwhelming debt.
 
 

plasticdaft

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Post by plasticdaft » Thu Dec 15, 2011 9:53 am
Tina,if its an unsecured loan and therefore included in the IVA can the lender repossess the vehicle?

Paul
Discharged today the 8th feb 2012. View is much brighter now.
Continuing to rebuild our credit worthiness.
 
 

Tina Shortland

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Post by Tina Shortland » Thu Dec 15, 2011 11:10 am
Hi Paul, an IP will only allow a car finance to go into an IVA once they are absolutely sure it is absolutely unsecured i.e no clause allowing repossession of the car.

regards
Regards, Tina Shortland, Debt Advisory Manager for Melanie Giles at Debt Advice TV.

If you’re looking for effective debt related information, articles and news, then go now to our on-line advice service at www.debtadvicetv.com

If you’re ready to ask us for specific advice or help, then get in touch at www.call-me.debtadvicetv.com so you can start to free yourself from the stress and anxiety of overwhelming debt.
 
 

plasticdaft

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Post by plasticdaft » Thu Dec 15, 2011 11:26 am
And if there was to be a risk to the car,I assume the IP would try to keep it out of the IVA and allow it to be paid as normal?

Paul

41 months in and still asking questions!!!
Discharged today the 8th feb 2012. View is much brighter now.
Continuing to rebuild our credit worthiness.
 
 

Tina Shortland

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Post by Tina Shortland » Thu Dec 15, 2011 11:47 am
Absolutely, but of course I cannot speak for all IPs!!!

Regards,
Regards, Tina Shortland, Debt Advisory Manager for Melanie Giles at Debt Advice TV.

If you’re looking for effective debt related information, articles and news, then go now to our on-line advice service at www.debtadvicetv.com

If you’re ready to ask us for specific advice or help, then get in touch at www.call-me.debtadvicetv.com so you can start to free yourself from the stress and anxiety of overwhelming debt.
 
 

plasticdaft

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Post by plasticdaft » Thu Dec 15, 2011 1:22 pm
Thanks Tina,oh have you done that dancing on the table malarky that you promised us???

Paul
Discharged today the 8th feb 2012. View is much brighter now.
Continuing to rebuild our credit worthiness.
 
 

Foggy

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Post by Foggy » Thu Dec 15, 2011 4:12 pm
font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by plasticdaft

Thanks Tina,oh have you done that dancing on the table malarky that you promised us???

Paul
We will, of course, require video evidence [:D]
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
 
 

Tina Shortland

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Post by Tina Shortland » Thu Dec 15, 2011 5:05 pm
Ha Ha - I did a tribal jig at my desk, my desk is rarely free from paperwork so there is a sure accident waiting to happen! I go about my life the same way I type so you can imagine.... Video evidence.....not a chance!!!!
Regards, Tina Shortland, Debt Advisory Manager for Melanie Giles at Debt Advice TV.

If you’re looking for effective debt related information, articles and news, then go now to our on-line advice service at www.debtadvicetv.com

If you’re ready to ask us for specific advice or help, then get in touch at www.call-me.debtadvicetv.com so you can start to free yourself from the stress and anxiety of overwhelming debt.
 
 

plasticdaft

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Post by plasticdaft » Thu Dec 15, 2011 5:08 pm
lol!!!

Who says insolvency cant be fun!!!!

Paul
Discharged today the 8th feb 2012. View is much brighter now.
Continuing to rebuild our credit worthiness.
 
 

kallis3

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Post by kallis3 » Thu Dec 15, 2011 5:13 pm
[:D][:D]
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley.
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