IVA Question
Can I keep my car while on an IVA?
It depends on the car and your circumstances. This is the case for all high value assets. It is normal to be allowed to keep a car worth a reasonable amount, especially if needed for work or family commitments. The conditions are not as strict as with bankruptcy.
For cars on Hire Purchase, this debt is secured and therefore can't be included in the IVA, the HP company will simply repossesses the car if your do not maintain payments.
Normally you will be allow to keep making HP repayments while on the IVA, however once payments are completed, you will be expected to make increased payment into the IVA now that your outgoings are lowered.
It may be the case that you decide to cut your losses and return the car to the finance company. In this case the outstanding balence is not longer secured and can be included in an IVA propsal.
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