www.iva.co.uk

Posted: **Thu Oct 18, 2007 1:23 pm**

Hi,
Can my Car HP be included into an IVA?
Thanks
Jan

Posted: **Thu Oct 18, 2007 1:27 pm**

I wouldn't suggest it as you could well lose the car!

When I set up mine we excluded it and was allowed to do so.

The reason being is that the finance company had a charge on it anyway!

Posted: **Thu Oct 18, 2007 1:30 pm**

Only unsecured debts can be included in an IVA.

Yesterday is history, tomorrow is a mystery, today is the present - a gift to make the most of.

View my blog at http://skippy13.blogs.iva.co.uk/

Posted: **Thu Oct 18, 2007 2:37 pm**

A Hire Purchase agreement is a secured loan agreement so it can not be included in the IVA. Failure to continue to pay this loan would likely result in the repossession of the vehicle. You may be allowed a budget in your IVA to continue paying your HP if this is deemed reasonable and necessary. If you did return the car and there was still money owing to the HP company this debt would be considered unsecured and could be included in an IVA.

Best Regards
Oliver

Thomas Charles and Co Ltd.
Experts in personal debt solutions.
Read customer feedback at: www.thomascharles.com/about_us.asp

Posted: **Thu Oct 18, 2007 2:57 pm**

No Hire Purchase is not something that can be included unless you had decided to return the car, which would then be sold on at auction and any shortfall then becomes unsecured.

However, I would check the paperwork you have, as nowadays more and more "HP" agreements are actually fixed sum loans or motor loans but people are lead to believe that they are Hire Purchase. We are finding more and more when people advise that they have HP, when we check the agreement it is a loan.

Jo Rolland
Debt Alternatives
www.debtalternatives.co.uk

Posted: **Thu Oct 18, 2007 3:00 pm**

An IVA should include all of your unsecure debts, however if you have a car on HP you will be allowed a provision in the monthly expenditure to pay this each month. If your HP then finishes before 60 months the monthly money will go into the IVA.

Best Regards,
IVA Experts
http://www.iva-experts.co.uk/

Posted: **Thu Oct 18, 2007 3:24 pm**

A very good point. People often can confuse HP agreements with Fixed Sum Loan Agreements. It is important to check the original paperwork to ensure that you have correctly identified whether the loan is secured or unsecured.

Best Regards
Oliver

Thomas Charles and Co Ltd.
Experts in personal debt solutions.
Read customer feedback at: www.thomascharles.com/about_us.asp

Posted: **Thu Oct 18, 2007 4:30 pm**

we had two cars which we thougth were both on hp,actually when we sent the paper work to our ip at the start,we found out one was hp & one was actually a loan.
The hp we pay every mth & the other is included in our iva.

Posted: **Thu Oct 18, 2007 5:16 pm**

Hi
Worth remembering that with HP agreements you have the right to return the car after paying a certain amount without any recourse from the lender.
I think this is why most car financing is done via personal loans now.
Regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

Posted: **Thu Oct 18, 2007 7:35 pm**

Yes that's true about mixups with HP and unsecured loans. I had initially assumed my car was HP and it was not allowed as part of the IVA so I had to keep that as part of my allowance but it turned out that it wasn't HP but an a loan unsecured. It is now included in the IVA which means i am now paying more towards the IVA. It means the loan company becomes another creditor who will want their payments from the IVA.

Posted: **Thu Oct 18, 2007 7:50 pm**

The reason for the motor loan product is to prevent voluntary termination (VT) - most lenders don't want cars back, too much hastle storing and disposing of them.

In percentage terms about 20% of vehicle finance through car dealers is on Fixed Sum Loan agreements the significant majority is still HP.

Posted: **Fri Oct 19, 2007 9:17 am**

Thank you for all your replies…
So my car hp can be included in my expenses, so am i right in saying that if i haven't got money to do an IVA because of my hp then maybe i should return my car?
Kind Regards
Jan

Posted: **Fri Oct 19, 2007 9:52 am**

That is an option for you Jan, but if there is shortfall you are just going to create another creditors, and how will you manage without a car?

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

Posted: **Fri Oct 19, 2007 7:37 pm**

Hi Jan80
You need to look at the paperwork to see if you have paid enough of the HP to return it without any penalties,otherwise you will generate a shortfall.
Can you live without a car ?
Regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

Posted: **Tue Oct 23, 2007 7:12 pm**

Dear Melanie and Andie,
Thank you for your replies. Unfortunately i am a supply teacher but not always for the same school and need my car to get to and from work. Sometimes i drive 40miles in a day it depends really.
Could return it and put the shortfall into the IVA? Could that be included? then maybe buy a cheaper one?
Thank you
Jan