Will they take car if I enter into IVA

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simon363

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Post by simon363 » Mon Jan 07, 2019 7:57 am
I am just about to start an IVA but have a car on PCP with Mercedes Benz finance - ideally I don’t want to keep the car as it’s not financially viable.
I am no where near the 50% mark for voluntary termination
Does anyone know if because I’m on an IVA will they take the car back?

Foggy

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Post by Foggy » Mon Jan 07, 2019 9:23 am
Most HP and PCP contracts have an insolvency clause, but it is not always acted upon and, of course, the triggering factors differ from lender to lender. Any penalty clause could possibly be added to the IVA with Mercedes Benz as a creditor. The finer points would need to be discussed with MB and with your IP first.

Being a practically new car and a premium marque there is a chance that the creditors would want you to get rid and downsize anyway.
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

Lisa Thomas

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Post by Lisa Thomas » Mon Jan 07, 2019 11:29 am
Yes you could give the car back and any shortfall owed to the HP Co. would be included as an unsecured creditor in your proposed IVA.

Then you need to get approval for the alternative transport/travel costs as part of the Income & Expenditure/contribution calculations.
I'm a licensed IP with 16+ yrs at Neville & Co covering the South West area. I have a YouTube channel with advisory videos on here: https://www.youtube.com/channel/UCMPTTu ... Z5k9ZcC2MA http://www.nevilleco.co.uk 01752 786800 Lisa@nevilleco.co.uk
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