Hi, My wife and I had our IVA approved last month. We have 2 HP agreements with the one in my name with Motonovo Finance and is less than 1 year old. My wife's HP agreement is with Fortis Lease, at the point the IVA was approved the term my wife had passed on the HP agreement was 34 months of a 60 month agreement. The IP advised us we could both keep our cars with me continuing to make the payments on my car, however as my wife's agreement had gone beyond the 50% threshold we would keep the car but not make any HP payments. The IP did take inform the Fortis Lease of the IVA and they raised no objections at the IVA meeting however they at the point had not supplied their figures to the IP. Reading various forums today I am a little concerned now. Please can someone clarify this position being correct? If it is correct and we wanted to sell the car could we only to buy a like for like on value basis (ie straight swap). The payments we were making for this HP agreement had been excluded from our budget planner, however the debt was incorporated along side all our unsecured debt.
Why has your IP said that your wife should stop making her HP payments? Is she intending on surrendering the car to the HP company? A HP debt is a secured liability, and provision should be made within the terms of the IVA for the ongoing payments to be paid. Which firm are you with?
Thanks Melanie. She is not intending on surrendering the car. We had clearly defined in the IVA proposal the need for 2 cars as my wife works varying shifts and commutes 10 miles each way to work. The firm is Debt Free Direct.
I think that you need to go back to them to see what logic has been applied to the treatment of this secured debt. Whilst your wife may be out of the period in which the creditor can take possessory action without a Court Order (after one third of the payments have been made) the car can still be repossessed with the benefit of a Court Order thereafter. This may be likely if no ongoing provision has been made for the monthly instalments - as you do not own the car until the final payment has been made.
Just been going through the IVA paperwork, in the Estimated Statement of Affairs my wife's car and its value are listed as "Assets Not Specifically Pledged" along with with a value adjacent, in the column next to it they have stated "Estmated to Realise" along with the same value as the preceding column. In the T's & C's my wife's car is listed under "Realisable Assets Excluded from the arrangement". When I questioned this before my wife signed and returned the agreement, we were advised that the loan became unsecured as the agreement had gone beyond the 50% threshold and as such they have listed Fortis Lease as an unsecured creditor in the List of creditors, with only my car and our property listed in secured creditors section.
Just got the loan agreement out. It is titled "Fixed Sum Loan Agreement regulated by the Consumer Credit ACt !974" with details of my wife's car listed below.
OK - That is not a HP agreement, but an unsecured loan - and always has been. Therefore your IP has treated the debt properly within the IVA. I am not sure where the confusion of the 50% of the payments made came from - your wife had full title to that car the day she drove it from the garage!
Thank you Melanie now thats clear one more question, fuel prices have been going up and we have cut right back on unnecessary trips, my wife's car is a diesel and as diesel is now almost 10p a litre more we have calculated we could save £20 per month on fuel costs if we had similar car that was a petrol engine. Furthermore we would be prepared to pay another £10 a month into our IVA if such a change of vehicle was allowed. In your expert opinion would this be allowed, could we sell our car on such circumstances and do a like for like swap based on us not having to put any money in? Thanks again!
