This will depend on the terms in your particular agreement with BMW. Most finance firms have an insolvency clause, but not all act upon it as long as payments are maintained. There is, of course, the question as to whether your creditors willl agree to you keeping the car and making the payments.
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
Tha ks for you reply there is an insolvency clause in the contract! If they descide I can't keep the car, would I then be liable for the charges that are associated with handing a car back early (I would no way be able to afford) what happens in this situation?
BMW may allow you to keep the car if payments are made despite the insolvency clause. It would be something for you and/or the Insolvency Practitioner to discuss with BMW. Generally if all payments are up to date it tends to stand in your favour.
If the car were taken back then the shortfall becomes an unsecured debt (no car left to secure it against) and would normally then be included as a debt in the IVA.
The other potential issue could be that even if BMW agreed for you to keep the car in an IVA, if the monthly payment levels were considered rather high by creditors, the IVA could be rejected.
Certainly worth taking some advice about an IVA with the car or without the car, plus alternative debt solutions such as a Debt Management Plan.