Car HP/Secured Loans in IVA's
If you have a car on HP (hire purchase) you are allowed to maintain the payments on your expenditure because the agreement between you and the garage is secured on the car.
In other words if you do not keep up repayments on the car then the garage/finance company have the legal right to come and repossess the vehicle because it does not belong to you.
If the HP finishes during the term of the IVA then your monthly IVA contribution will increase by the amount of the HP monthly payment for the remainder of the IVA.
For example:
If your IVA monthly contribution is £200 and you are paying £100 a month for car HP which finishes 12 months after starting the IVA, then you (the debtor) will pay £200 for the first 12 months and then £300 for the remaining 48 months.
The same rule applies to any other secured loans.
Creditor
Someone you owe money to.
Unsecured lending
Total loan & credit card debts excluding your mortgage and any hire purchase.
Country
The country you currently live in.
Insolvency Practitioners
Also known as an IP, a person who specialises in formal insolvency cases.
Valuations
The process of determing the current value of an asset.
Equity
The difference between the market value of a property and the claims held against it.
Lender
Someone you owe money to.
Eviction Order
A court order by which a person may be evicted.
Arrears
An unpaid and overdue debt.
Disposable Income
The amount of income left to an individual after taxes have been paid, available for spending and saving.
Statement of Affairs
A financial report showing assets and liabilities at expected liquidation values and shareholders' equity.
Insolvent
Unable to meet debt obligations.
Secured Loan
Money borrowed using goods or property as a guarantee.