If i apply for IVA, would i loose the car?

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joanna216
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by joanna216 » Fri Aug 25, 2017 3:09 pm
I have a car rental on lease for three years that is essential. If i apply for IVA, would i loose the car? And also what about upgrading a phone?
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Foggy
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by Foggy » Fri Aug 25, 2017 3:39 pm
From The IVA perspective you would not lose the car as long as it is a modest vehicle. However, you have to think ahead about what will happen when the lease expires, you will not be able to finance any balloon payment or renew the lease. There is often a repossession clause in lease agreements, however, they are not usually triggered. It would be prudent to check with your lease company (perhaps anonymously). I recall Black Horse repossessing once a while back.
Upgrading the phone, when the time comes, should be OK, as long as the monthly phone payment doesn't increase.
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luluj
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by luluj » Fri Aug 25, 2017 6:13 pm
You need to check the terms of your car loan / lease as often their is a clause about going insolvent.

I had a similar issue in my iva and had to get the finance company to agree not to take vehicle back - had to demonstrate affordability in the budget.
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Lisa Thomas
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by Lisa Thomas » Tue Aug 29, 2017 1:51 pm
it's up to creditors to accept whether you genuinely need that particular car for work and whether they consider the payments to be reasonable.
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kallis3
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by kallis3 » Tue Aug 29, 2017 3:20 pm
You may find the finance company may well cancel your lease once they find out about an IVA. Perhaps an anonymous call to the company to find out?

As Foggy says - you should be ok with your phone - I had no problems with O2
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