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My car is worth around 6k, will I be forced to sell and get cheaper if I do an iva |
Submitted on: 18th Jun 2010 by Non-Member | Total Answers: 1
I am concidering a lump sum IVA with my redundancy money as I think I can rack up around 33% of my total debt. I know that I need to make my income and expenditure match to use my redundancy but I am worry they will make me sell my 6k car. we down sized 2 petrol cars to one diesel and one motorbike a couple of years ago to ensure our outgoings were reduced. My car was chosed because I have 3 babies and needed one that fits 3 car seats. I am worried about them telling me to downsize (which will make my outgoings go up) preventing me from being able to apply for an IVA.
Re: My car is worth around 6k, will I be forced to sell and ...
In an IVA all assets are disclosed - that is to say they are noted in the proposal to creditors. It is then explained to creditors whether they will be sold to raise funds to pay to the IVA or whether it is justified that they should not be sold.
If you are able to show that the running costs have reduced as you mention below, this will be reviewed and compared against the bankruptcy calculations also. As both an IVA and bankruptcy are insolvency procedures creditors vote on the outcome of whichever solution provides the best return.
For much more indepth advice please do speak to a debt advisor
This question was answered by Debt Advice Foundation, an independent UK debt advice charity. If you're considering entering into an IVA, Debt Advice Foundation provides a free, confidential helpline and can advise you on whether you qualify. Click here to find out more.
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