You may find the finance company won't allow you to carry on.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Is the finance secured on the vehicle ? If so the payments, if reasonable will be allowed in your outgoings. The car has to be reasonable for your needs --- Ford Focus, rather than Aston Martin.
As Kallis says some finance companies will pull the plug, but most are OK.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Once you have finished paying, you'll probably find your payments will go up by the amount you are paying for your car.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
I've just started an iva was approved last week I also have a car on finance and was told by the iva company my car would be fine as it's a secured debt after I started the process 3- 4 weeks ago I looked through my car finance paperwork and found a few clauses I phoned my iva company and was advised to call finance company straight away to see where I stand I was told by them that as long as I keep up with repayments and don't go bankrupt they are happy for me to keep the car.
Even more of a stress was my creditors meeting was last week and I had a phone call to say that the creditors would accept if I downgrade my car within 3 months as maximum amount they allow a month for car finance is £250 I pay £276. If this was unable to be done in the timescale I would need evidence of this and 12 months would be added onto my iva. I phoned my finance company straight away and asked they said this can not be done on this agreement as it is fixed and provided me evidence to give to my iva company it was a lot of stress and I was very worried.
I would phone a iva company and your car finance to see where you stand first.
You might be able to keep your car, but just pay the Monthly £26 difference from savings on your other allowances? Speak to your IP to discuss. Good luck.
My opinions are just that: Based on my experience and being a self-employed IVA customer.
UpToMyNeckInIt wrote:You might be able to keep your car, but just pay the Monthly £26 difference from savings on your other allowances? Speak to your IP to discuss. Good luck.
I can not downgrade so they have just added 12 months onto iva which I'm happy with all was approved
a) The cost you pay for the car might be challenged by creditors as part of your I&E review
b) Even if the payments are considered reasonable the HP Company may still terminate the agreement and repossess the car
