I have a car on Motor Finance, have paid over half the payments on it. Would my car be considered as my asset and would the remaining Motor Finance payments have to be part of my IVA?
Would it be considered as still belonging to the Motor Finance and therefore has to remain outside my IVA?
If the loan is secured on the vehicle it cannot be rolled into your IVA and the repayments for the loan will form part of your allowable expenses (at the discretion of your IP and creditors). When repayments on the car finish they will be added to your IVA payments. The vehicle will be considered an asset, but you will request it be excluded from the IVA, which is usually agreed as long as the vehicle is considered reasonable for your needs (Ford Focus -- yes .... Aston Martin -- no!).
Some finance companies will repossess if you declare yourself insolvent --- most have this written into their terms and conditions, but the majority do not action this as long as payments are met.
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