IVA Articles
Articles and Information on everything related to IVAs
IVA : Can I Change Cars In An IVA?
Yes you can change your car in an Individual Voluntary Arrangement (IVA).
The reality is that if you are in an Individual Voluntary Arrangement (IVA), and your car breaks, you are going to need to replace it. Most people need a car to go to work, and just because you are in an Individual Voluntary Arrangement (IVA) it does not stop cars breaking down.
In reality paying for another car whilst in an Individual Voluntary Arrangement (IVA) is the difficult part. If your car was subject to a Hire Purchase Agreement that has now finished it is allowable to buy another car if your original car is non viable. It is important not to increase the amount you were previously paying. In other words if your contributions to your Individual Voluntary Arrangement (IVA) remain the same your Individual Voluntary Arrangement (IVA) can continue.
If however your car Hire Purchase Agreement has come to an end and your car is still viable you will be expected to increase your contributions to your Individual Voluntary Arrangement (IVA) by using the money you previously used to pay for the loan.
In some cases this technique is used to help people enter an Individual Voluntary Arrangement (IVA) with lower payments, which will increase when the Hire Purchase Agreement is completed. This means that people who appear to not qualify for an Individual Voluntary Arrangement (IVA) initially can increase payments after say two years, giving a mean average over the five years of their Individual Voluntary Arrangement (IVA) above the acceptable minimum to creditors.
If you are unsure of the points discussed in this article and would like to chat to one of our specialists call 0800 088 7503 or visit myIVA-Adviser and download one of our free guides designed to help people with serious debt problems.
