Hi, im in a dmp, have been for 3 years now. My car which is 17 years old, is on its last legs, I need a car for work, as I start work obscene hours in the morning. I have been offered car finance up to 8000 pounds on hp over 5years.im tempted to take this offer up. My question is, if I take on the 5 year term of hp for the car, and I eventually end up entering into an iva, say in 6 months time for arguments sake, am I commiting an offence of some kind, or would the potential iva, make me return the car back to the hp company. I do not want to do anything illegal.... Thank you.
Most HP / PCP agreements have an insolvency clause, though it is not always acted upon. However, if you go down this route be prepared to have the car repossessed.
If you are aware that an IVA might be looming, you could be deemed ( if push comes to shove ) to have acted unlawfully in taking credit knowing you will be unable to repay it. There is also the possibility of creditors in your DMP getting wind of it and pulling out of the current agreement.
It is a big gamble and only you can decide.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014 http://foggy.blogs.iva.co.uk