Give up my possessions?

Margo · Joined: 26 Apr 2007 Posts: 1 Location: Middlesbrough

Hello. I am not to sure if this is true but...

I have heard a rumour that if you are in an IVA, creditors may expect you to reurn or sell good that you have bought on your cards etc?

I read on a site somewhere that they can reposess anything they wish to the cost of the debt.

I hope they are not able to reposses my clothes, designer or otherwise.

I have been frightened to do anything about my debt for a while. Your site is helpinng me tho.

Regards. Margaret

Cheryl · Posted: Fri May 04, 2007 9:50 am Post subject: Giving up my possessions?

Dear Margaret.

Firstly, let me reassure you that once an IVA has been approved, No creditor can take any action against you. They cannot instruct bailiffs to repossess any of your belongings. Items such as clothes would never be repossessed even if these have been purchased by credit card as the credit card company would be included in your IVA as one of your creditors.

Anything that has been purchased on your credit card you would NOT be expected to return.

When your IVA proposal is being drafted, you will be asked to provide information on your assets. This includes property, (which may or may not have a mortgage outstanding) vehicles, (this could include a caravan) and savings/pension If you owned an exceptionally expensive car, your creditors may request that the car be sold in exchange for a more moderate vehicle. Creditors may also expect you to re-mortgage your property in order to release any equity and contribute it into the IVA.

The only companies that can repossess anything are hire-purchase companies. However, if you have, perhaps, a car on hire-purchase, are not in arrears and are still making regular payments an IVA would NOT effect this at all. You could still continue to make the monthly payments for your vehicle and also monthly contributions towards an IVA. However, you would need to ensure that you are able to keep up both payments as an IVA is a legally binding agreement with your creditors.

You may have confused the processes of Certified Bailiffs’ removal of people’s belongings with the process of an IVA. What you must remember is by applying for an IVA, you are doing something to tackle the debt problem. Bailiffs are usually only instructed in such cases where people are ignoring their debt problems.

Regards.
The ClearDebt Team