www.iva.co.uk

Im currently taking advice with regard to entering an IVA. I believe putting together a proposal is going to be a viable option but am just waiting to hear back from my chosen IP when my case has been reviewed. Ive posted before about car HP and whether this was the right thing for me to do but I now have more questions.

On Friday I signed the relevant HP documents to purchase a car and am due to pick it up tomorrow (Monday). When I got home on Friday, I read the small print on the documents Id signed and it clearly states that the HP company have the right to cancel the agreement if I declare myself bankrupt, propose a voluntary arrangement or generally become insolvent. Obviously, I hope to enter an IVA in 2-3 months time so Im now in a deep, dark hole wondering what the heck Ive done. I called my proposed IP’s office and was told not to worry but to look at my rights to cancel the agreement over the weekend. Unfortunately, there are no cancellation terms on the agreement and having searched the internet it seems that if you sign an HP agreement on the supplier’s premises, there is no right to cancel – is this correct? If I can cancel, will I lose the deposit I paid?

Do all car HP contracts have this clause in them? The company concerned is GMAC UK (they are Vauxhall’s preferred finance company). Does anybody have any history with GMAC car finance? Perhaps they're reading this and will retract their offer of finance!

What do I do? Do I go tomorrow and collect the car and just wait to see what happens in the next few months and hope that if my IVA is successful that my IP can persuade them to let me keep the car? I cant see that they will allow it as it wont matter to them that I need the vehicle for work as they will sell it to recoup their money and I’ll owe them nothing so they will gain by taking the car back as at least then they have their security back.

I cant believe how much more distress Ive caused myself by signing up to the agreement but I genuinely thought it would okay. Any advice would be much appreciated.

This is a standard term in most HP agreements, but in my experience it is rarely relied upon by those companies as they would rather continue to collect your money than be a collector and seller of second hand cars for a shortfall.

So far as I am aware, the protection of the Consumer Credit Act is not affected by the venue of where the agreement is signed.

Hi
I am sure that you will be ok and have done the sensible thing by having a car to last the five years.
If you sign the HP on the premises then you can't cancel I'm afraid
Regards

Many thanks for the replies. I think Ive spent so much time depressed about my financial situation that I cant seem to think positively about anything at the moment. Apparently, Im quite depressing to be with and have been for some time (as told to me by a close member of my family). I honestly thought I was masking it - I had no idea just how far down this had pulled me. Having read so many posts, I know Ive got worse to come so could I please apologise in advance if I post anymore questions with such negative vibes!

Hi
Debt really can make you feel very depressed and withdrawn.
Post as many questions as you want to, we are all here to help and listen to you. Once your IVA is in place you will feel so much better, trust me
Regards

SG70 - debt and finance issues do have a tendency to be on our minds 24/7 and can result in an unbalanced life.
However deciding to do something about it - is the first step to getting back in control and being able to restore balance in life.

I am looking forward to this point in proceedings and hopefully will still be able to post to help someone else as others have helped me here. (It will be great to give something back - but you gotta have it to give and that will come in time)

Hi SG70 - our debt has been making me really depressed and I never thought that could be the reason for it. Ever since I made the call last Friday and decided to go ahead with an IVA I've felt so much better - just knowing that this is the end of the problems and calls, either way IVA or BR I have finally put a stop to it so hopefully you will do the same soon and I am sure your mood will improve

If your IVA goes ahead, your I&E will be set to include the HP payment, alongside your IVA payment etc so GMAC will get their monthly payment each month as it will be set - so long as your DD allows this payment from your account each month.

A reliable car for the period of a IVA is an important factor and in the long run should not impact on your ability to pay yur IVA - go pick your new car up and enjoy it!

Things do get easier once the IVA is approved - a tight budget, but a challenging one....you will turn into a avid saver rather than spender !