would I lose my car?

[p_s]

my partner and i have debt on credit cards etc totalling approx 14,000 we cannot pay these repayments and are in arrears with our rent and council tax, i have a car on finance and still owe £3200i have been paying this for 3 years and have 16months left, payments on this are £188 per month and i need the car for work, if i go for an IVA would i lose my car

[Oliver]

You will not necessarily lose your car. If you reasonably need your car to work then this will be allowed as a legitimate monthly expense. If you are paying a very high HP cost then this may be scrutinised but I think that you will be fine. Also if your car was worth a lot the Creditors may want you to sell it and downgrade. However, once you have deducted the remaining HP payments from the value of your car there will be nothing left. If you are allowed to keep the car you are likely to have to reapportion the HP payment to your IVA once the HP agreement has finished.



Best Regards
Oliver

Thomas Charles and Co Ltd.
Experts in personal debt solutions.
Read customer feedback at: www.thomascharles.com/about_us.asp

[MelanieGiles]

p_s

As your debts are low at £14,000 you will need to ensure that it is cost effective to propose an IVA in the first place. Depending upon the level of your surplus income (can you tell us how much you could afford to pay your creditors on a monthly basis) you may be better looking at a Debt Management Plan.

I concur with Oliver that your car would probably be safe within an IVA.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.
View my IVA blog at: http://melaniegiles.blogs.iva.co.uk