Does Your Car Help in Getting IVA Approval?

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Does Your Car Help in Getting IVA Approval main

An Individual Voluntary Agreement, most commonly known as IVA, is a debt solution to deal with financial issues. You’ll need to go to a licensed Insolvency Practitioner before getting an IVA.

This website provides a free consultation about debts and its management and you can contact them to find a way out of difficult debts. You are required to show some assets and a stable source of income in order to get an IVA from the court. That asset will be considered a security in case you are unable to pay off your debts. You are more likely to get an IVA if you have an asset to offer as security, so that security can be, for example, your house, gold or a car.

Using a Car for IVA

You can’t include your car in a legal agreement as security for IVA if it’s your source of income. You must prove that the car is an asset but not a necessity to your livelihood. There are also several other factors that have a role to play in this situation – and you should know that you can own and freely use a car even when you have put it as a security in the IVA. This will not affect the status or use of your vehicle in any way.

Hire Purchase Agreement

Hire purchase is used to acquire an asset by giving the payment in instalments and interest over a period of time. The hire purchase agreement is a type of secured payment which means the asset can be seized if you are unable to pay the debt on time. If you need to keep the car, then take the agreement and keep it in running status.

Does Your Car Help in Getting IVA Approval vehicle

A Lease Agreement on the Car

There might be a lease agreement between the lessee and the lessor where the lessee is the user and lessor is the owner of the asset. The lease agreement works the same for the car as the hire purchase works. There might, however, be a few issues when the lease has come to an end.

If You Own a Luxury Car

If you own a luxury car and its cost exceeds the amount of debt, it’ll be included in the Individual Voluntary Agreement. Your car will automatically be included in an IVA even if you don’t do this. In the case of bankruptcy, the car will be seized. Legally, you have to declare all your assets. If you hide your car, it will be taken from you whenever creditors find out about it. The court can cancel your IVA if you hide the status of your original assets.

Take Free Consultation:

If you still have queries or any confusion, you can take a consultation session. Most organisations, like Carrington Dean, offer free consultation and are open most of the day. You can take advantage of this facility to help you make the right decisions.

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