Is my car on finance included in an IVA?

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emmanuell
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by emmanuell » Sun Sep 23, 2018 9:19 am
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?
OR
Would it be considered as still belonging to the Motor Finance and therefore has to remain outside my IVA?
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Foggy
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by Foggy » Sun Sep 23, 2018 9:49 am
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.
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Lisa Thomas
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by Lisa Thomas » Tue Sep 25, 2018 9:32 am
They should be included for £1 if the debt is covered by the value of the car - or more if there is a shortfall/negative equity that can be calculated.
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Foggy
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by Foggy » Tue Sep 25, 2018 10:01 am
Lisa Thomas wrote:
They should be included for £1 if the debt is covered by the value of the car - or more if there is a shortfall/negative equity that can be calculated.


Only as a potential debt if the loan is called in and there is a shortfall, surely. If this is secured on the vehicle it cannot be included as it is.
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Lisa Thomas
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by Lisa Thomas » Tue Sep 25, 2018 1:51 pm
If there is enough equity then they should be included as a creditor for £1 only to reflect the contingent nature/fact they are a secured creditor.
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