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. http://kallis3.blogs.iva.co.uk
If the finance is secured on the car, and the creditors feel that the vehicle is 'reasonable', allowance will be made in your expenses to service the repayments. However, some finance companies can enact the usual insolvency clauses and may repossess ---- it varies from firm to firm.
If the car was financed from a personal loan ( not secured on the vehicle -- like a bank loan) that debt will be rolled into the IVA along with other debts. The car will remain with you, again assuming the vehicle is considered 'reasonable'.
If financed through a PCP, or similar agreement, you will generally be OK while in contract, with the PCP payment part of your agreed expenses ('reasonableness' and insolvency clauses allowing).However, at the end you will be unable to re-finance the balloon payment / option to purchase, so the car will be taken back --- that said, I have seen a very few instances recently where, with the permission of the IP and the co-operation of the finance / lease company, further finance has been agreed.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
