www.iva.co.uk

Help !!!!! im trying to set up an iva but i have a car agreement with santander that i have been told by 2 companys now needs to be added in? My debts are £11k loan with natwest, £4500 with Mbna, £5500 RBS credit card and £8000 car loan with Santander. i have been told i have to add the car agreement in the iva and also that i have to hand the car back because of the car being 25%+ of the debt. Surely this cant be right? i have to have my car as i drive a lot with my job and cant get finance for a new one as my creditfiles now ruined.

hi markdineen, I'm not sure of the answer to this one but do that a poster who does know will be along very soon to advise. xx

IPs vary massively in their attitude to cars - some advocate a cheap runaround while some are happy to give allowances for a lease agreement. It will also depend on your individual circumstances and what disposable income you have left for creditors.

I'm not the all knowing poster, but I think I know a lady who is...

That is horrendous advice, if the car is subject to an unsecured loan. If you hand the car back you will be merely preferring that creditor and effecting a transaction at undervalue at the same time.

Is the car subject to a hire purchase agreement instead? If so, then your IP ought to be factoring in ongoing payments as a necessary expenditure item, thus protecting this very important asset.

I would seek alternative advice if I were you.

I can only agree entirely with Melanie. Which companies advised this?

This situation is exactly why this forum is invaluable for people seeking advice for help with their debts. There is a lot of midleading and incorrect advice 'out there' so it is vitally important to have the facts and know you are in good hands when putting something in place otheriwse your experience could be one of the nightmare stories instead of the successes.

If you are being given incorrect advice at this stage Markdineen about something so important you may want to reconsider moving forward with whatever company you have chosen. Only move forward and agree to things when you are comfortable.

regards,

As Melanie has rightly said, the advice you have received here mark is extremely suspect. If your car is on an HP or leasing agreement, then the payments should be included in your expenditure budget (unless they are totally unreasonable in the context of your circumstances. If the loan is unsecured then it would simply be added to the IVA.

I am surprised that you have been given this advice....

You need to check with Santander what type of credit agreement you have. If it's an unsecured loan, the debt will come into the VA and you should be able to keep the car as you need it for your work. If the agreement is a conditional sale agreement or a HP agreement then you IP should work that expense into your I&E and when the repayments finish, your IVA payments will increase accordingly if it finishes within the term of the VA. Either way, you shouldn't lose the car.

I agree that you should seek alternative advice, visit www.iva.com for a list of companies and reviews. Give one or two a ring for free and impartial advice.

I am sure there is a way for you to be able to save your car.

It was mentioned that the Santander car loan was unsecured so it had to be added in but the way Santander vote is they reject iva proposals if they own 25% or more of the total debt, it was also mentioned that it was entirely my choice and that to iva i would be asked to voluntarely hand the car back.

Was it a personal loan? If so then I don't see how they can make you hand the car back, and who would you hand it to? The garage will have been paid by now.

If the Santander loan is unsecured then there is no question that it should be included in your IVA proposal if you make one.

On the point of handing the car back, if the loan truely is an unsecured personal loan, then there is no-one ot hand the car back to. Santander may have given you a loan to buy a car, but at the end of the day, if you subsequently can not pay the loan, they just want their money. Santander certainly would not want your car as they would have no processes or procedure to take it from you.

I think you need to take advice from someone perhaps a little more qualified to help you with an IVA...

We had a loan and bought a car prior to approval. At no time was anything mentioned about handing it back.

You need to speak to other companies via the link I posted.

No creditor in their right minds will deprive you of the means to earn the money to pay them back. If the car loan is unsecured ( ie, not an HP agreement, handing it back ( if you could) would serve no purpose.