www.iva.co.uk

I have a car, bought as new in May 2006 on a kind of HP. It is one of those schemes where you put a deposit down, finance a chunk of the value of the car over 3 years and then after the three years have a number of choices:

A) Return the car and walk away
B) Keep the car and buy out or re finance the remaining 'chunk'
C) Part exchange against another, newer vehicle.

This car is mentioned in my proposal, but as it is secured on the car, this creditor is not included in the IVA proposal.

I am unsure where I stand, if the IVA is approved..I live in the countryside and so really need a car to get around. If I hand the car back I will be without a car and as I can't save in the IVA I will not be able to buy a cheap run around. I don't want to part exchange against a new car and dount I will be able to anyway as it will be a new credit arrangement.

My IP says that I will be able to finance the remaining 'chunk' from May next year when the 3 year term is up...and that this credit is more of a continuation and so allowable under the IVA.

I am just wondering if anyone else has been in this position and what advice you were given/what actions you took.

Thanks for reading!

I'm sure the experts will be along to help you. I think the advice you have been given is correct and you will just carry on paying for the car. X

Hi again
Usually Hp is allowed for cars in the proposal as part of your expenditure, and when the payments end then payments are increased as you are not paying the Hp anymore. If it is allowed then as long as you keep your payments up there is no reason for you to lose your car.

Ang

The only people who can confirm that you can refinance the car at the end of the balloon period are the car finance company themselves. I suggest that you give them a call to see if this is possible.