if I did an IVA would I lose my car?

James · Joined: 25 Apr 2007 Posts: 1

I cannot afford to pay my debts and so am looking into doing an IVA.
I have a car on finance and I have been meeting the payments as I need my car to get to work.
Would my car be taken away from me if I was to do an IVA?
I have only had the vehicle for 6 months and still have 3 and a half years left to pay.

Please help.
Sad

Mina · ClearDebt Advisor Joined: 30 Nov 2006 Posts: 3

Dear James

If you were to do an IVA your car would only be taken off you if you were in arrears with payments.

Since this is not the case and you are making the regular payments then you would be able to keep the car. You would however need to have sufficient surplus at the end of each month to be able to fund your IVA and also keep up the car repayments.

Also, once the finance for your car is finished and paid off, depending on how long your IVA lasted (most last 5 years), your creditors would probably expect you to add this additional money to your IVA contributions for the remainder of the IVA.

Hope this has helped.

Kind regards

Mina