can i keep my car on finance with an iva

can i keep my car on finance with an iva

An IVA (Individual Voluntary Arrangement) is a formal agreement between you and your creditors that sets out your ability to pay off your debts. It is an alternative to bankruptcy and can be used to help you clear your debt. The IVA is legally binding and is recorded on the public register. It can also help to protect you from legal action from your creditors.

If you are considering an IVA, one of the main questions you may have is whether you can keep your car when you enter into one. The answer is yes; you can keep your car on finance with an IVA. However, the terms of your IVA will determine how much you can afford to pay towards your car finance.

When you enter into an IVA, your creditors agree to accept a reduced amount of money as full and final payment for your debts. This means that your creditors will no longer take legal action against you for the remaining balance of your owed debts. Your creditors will also agree to freeze any interest and charges on your debts.

Your IVA provider will assess your income and expenditure to determine how much you can afford to pay towards your car finance. This will be taken into account when calculating your IVA payments. If your car finance payments are considered too high, your IVA provider may contact your car finance company to negotiate a lower payment. This could include extending the term of the agreement, allowing you to spread the cost of the loan over a longer period of time.

In some cases, it may be possible to include your car finance in your IVA. This means that the payments for your car finance will be included in your IVA payments. However, this will depend on whether the amount you owe is deemed to be an unaffordable debt that can be included in the IVA.

If you are considering an IVA, it is important to seek professional advice from an expert who is qualified to give advice about debt solutions. They will be able to advise you on the best way to manage your debts and how to keep your car on finance with an IVA. They will also be able to provide you with information about the different debt solutions available and help you decide which one is best for you.

If you do decide to enter into an IVA, it is important to make sure that you keep up with all the payments to ensure that your IVA is successful. You should also make sure that you keep track of any changes to your circumstances that could affect your ability to make payments.

Conclusion

Conclusion

It is possible to keep your car on finance with an IVA. However, it is important to seek professional advice to ensure that you are choosing the right debt solution for your situation. Your IVA provider will be able to assess your income and expenditure to determine how much you can afford to pay towards your car finance and negotiate a lower payment where necessary.

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