would i be able to leave this out of the iva?

[d12]

i have finance on a car which is unsecured but with an interest in the car, only for an amount of £1700.00. would i be able to leave this out of the iva?

[MelanieGiles]

Hi d12

I am assuming that you bought the car with an unsecured personal loan? If so both the loan and the vehicle need to be declared within your IVA proposal.

[d12]

the finance is an HP agreement and have been told that this would be put down as an expence so surely it would not be included in iva?]Originally posted by MelanieGiles

Hi d12

I am assuming that you bought the car with an unsecured personal loan? If so both the loan and the vehicle need to be declared within your IVA proposal.
[/quote]

[ianmillington]

Hi d12

Your 2 posts would appear to conflict. It is eirther a Hire Purchase agreement or an Unsecured Loan (albeit if it is the latter it might actually look like an HP agreement in that it identifies the car.

The difference is crucial. If it's genuine HP, your IP must show the car as a secured asset. Also, unless for work reasons your car will need changing, once the HP is finished you can expect your contributions into the IVA to go up. You must keep making the HP payments otherwise your car will be repossessed.

If it's an unsecured loan, the creditor goes into the IVA and you own the car. If it's an expensive car, you can expect the creditor who financed it to try to modify the proposal to require you to sell it and buy something cheaper, and introduce the surplus funds into the IVA.

Hope this helps

ian