What will happen to my car in an IVA
An IVA protects you from having to sell your car.
You will also be allowed to set aside sufficient funds each month from your income to enable you to maintain the car and keep it in a roadworthy condition.
Other running costs such as road tax and MOT costs are also accountable.
Your creditor will insist that the car has no more than a modest value, which is deemed to be £6,500 or lower, but exceptions can be made where special requirements dictate.
Petrol allowances are also taken into account to enable normal usage, but excessively high petrol allowances can cause problems if they are not justifiable and can result in limitation being implemented.
Cars that are being purchased via Hire Purchase agreements can also be kept, as these are not considered to be owned by the licensed keeper until the final payment has been paid.
The payments to a Hire Purchase loan are considered a priority and will be allowed to continue during the IVA.
Allowance will be made within the financial statement to enable the HP payments to continue as normal for the remainder of the agreement, until the car is fully paid for.
All other monthly maintenance costs are accounted for in much the same way as explained previously.
If you are unsure whether your car will be affected by your IVA then call our helpline on 0800 856 8569 and ask one of the IVAorg experts.