With some obvious exceptional circumstances, the short answer is no. If you own a car and you need it for traveling to and from work, for family transport purposes or for your business (e.g. as a self-employed taxi driver) then it is highly unlikely that your creditors will insist that you get rid of it, when they vote on your IVA proposal at the Meeting of Creditors.
In what exceptional circumstances might creditors vote to prevent me from keeping my car?
If the value of the car was relatively high – say £10,000 – then creditors might require you to sell it and allow you to purchase a modest car for a maximum of say £2,500 and introduce the difference of £7,500 as a lump sum into your IVA to enhance the dividend to creditors. Of course, if you were a self-employed taxi driver, then you would have a much stronger case for retaining a good quality vehicle since given your likely high mileage, you would want to keep the vehicle roadworthy and minimize maintenance and running costs.
If it could be shown that public transport was more than adequate for your transport needs and those of your family and that a significant saving would be made if you did not have to run and maintain a car, then creditors might require you to dispose of your car and introduce the savings into your IVA. In recent years, however, creditors have not gone down that road, by and large.
If you want to make the best case for not losing your car in an IVA, ensure that your IVA proposal clearly spells out the reasons why you need the vehicle and ensure that the value of the vehicle and its running costs such as fuel, insurance, road tax and maintenance are not excessive. Creditors are likely to act reasonably and less likely to reject your IVA when the facts are disclosed fully and honestly.