{"id":2176,"date":"2014-01-03T14:15:39","date_gmt":"2014-01-03T14:15:39","guid":{"rendered":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/?p=2176"},"modified":"2019-02-20T08:52:07","modified_gmt":"2019-02-20T08:52:07","slug":"car-hp-with-an-iva","status":"publish","type":"post","link":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/car-hp-with-an-iva\/","title":{"rendered":"Car HP with an IVA"},"content":{"rendered":"\n

The short answer is no. If you are insolvent and offer an IVA to your creditors, your proposals must include a Statement of Affairs<\/strong>. The Statement of Affairs must list all of your Assets and Liabilities and contain an Income and Expenditure Statement.<\/p>\n\n\n\n\n\n\n\n

The first thing to do is to verify that it is a HP agreement and not just an unsecured loan. There is a big difference and many people believe their agreements to be HP when they are not. This can cause problems in an IVA if the loan was recently taken out or if the vehicle has a relatively large value but no charges against it.<\/p>\n\n\n\n

\"Car<\/figure><\/div>\n\n\n\n

If your vehicle was acquired via a HP Agreement, it is a secured \nasset. Your IVA proposal must provide a realistic valuation. It must \nstate when the agreement was entered into and the duration of the \nagreement. It must state what the monthly HP payments are. If there is a\n final balloon payment your proposal must provide full details.<\/p>\n\n\n\n

Your proposal will also state why you need a car. It may be that you \nneed it to travel to and from work. You may need it for family transport\n purposes. It may even be necessary for your business e.g. if you were a\n self employed taxi driver or if you were in the business of providing \ncourier services. Apart from the monthly HP payment, your car will also \nhave running and maintenance costs such as petrol or diesel, insurance, \nRoad Tax and maintenance costs. These are all normal expenditure items \non your Income and Expenditure Statement.<\/p>\n\n\n\n

The car might be in positive or negative equity, depending on its \ncurrent value and the amount remaining to be paid on the HP agreement. \nCreditors will expect all of this information to be provided in your IVA\n proposal. Not only that but creditors will expect your proposal to \noffer increased monthly contributions to your Individual Voluntary \nArrangement, once your HP Agreement expires. For example if you offer \nproposals for an IVA of five years duration, and your HP Agreement \nexpires after three years, your creditors will expect to see enhanced \nmonthly contributions to your IVA for the last two years.<\/p>\n\n\n\n

However, it may be that you will need to change the car at the end of\n the HP agreement, due to its age or condition at that time. If for \nexample, you were a self employed taxi driver, changing the vehicle \nmight be absolutely necessary because of safety, condition, excessive \nrunning costs or other valid reasons. Your IVA proposal should \nanticipate such a scenario and state so up front, allowing for the need \nto obtain a replacement vehicle, also on HP, during the term of your \nIVA. This is preferable to offering your creditors a variation to your \nIVA after two or three years and seeking their permission then to change\n your vehicle.<\/p>\n\n\n\n

In a nutshell, full disclosure of your car HP and all associated \ncircumstances is not just desirable, it is essential for the acceptance,\n maintenance and successful completion of your IVA.<\/p>\n","protected":false},"excerpt":{"rendered":"

The short answer is no. If you are insolvent and offer an IVA to your creditors, your proposals must include a Statement of Affairs. The Statement of Affairs must list all of your Assets and Liabilities and contain an Income and Expenditure Statement.<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_seopress_robots_primary_cat":"","_seopress_titles_title":"","_seopress_titles_desc":"","_seopress_robots_index":"","footnotes":""},"categories":[7],"tags":[],"class_list":["post-2176","post","type-post","status-publish","format-standard","hentry","category-iva-articles"],"_links":{"self":[{"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/posts\/2176","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/comments?post=2176"}],"version-history":[{"count":3,"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/posts\/2176\/revisions"}],"predecessor-version":[{"id":2209,"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/posts\/2176\/revisions\/2209"}],"wp:attachment":[{"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/media?parent=2176"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/categories?post=2176"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/tags?post=2176"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}