For many people who have an IVA, they believe it is impossible to get IVA car finance. Whilst it can be a little bit trickier than normal car finance, it doesn’t have to be impossible. There are a few things you should know about IVA car finance.
What is an IVA?
An Individual Voluntary Arrangement (IVA) is usually enforced when someone is struggling to pay back their debts. An IVA is a legal agreement between a person and their creditor(s) to help pay off their debts at an affordable rate. Entering into an IVA means that your creditors won’t take any further action against you and in some cases some of your debt will be written off.
An IVA has to be agreed upon by all parties, i.e. yourself and your creditors. Your creditors get to decide whether or not they agree to an IVA. You can apply for an IVA if you can afford to pay something towards your debt but couldn’t afford to pay off the full amount. This amount is then broken down into manageable payments which are usually monthly. You should also note that you will need to prove you have a regular long-term income that will cover the duration of your IVA. This gives creditors the confidence that you will pay back your debts and can influence their decision at the approval stage. To find out more information about how to enter into an IVA, please visit Citizens Advice.
Can I get a car on finance with an IVA?
The good news is that Refused Car Finance can offer IVA car finance! As mentioned, it may be a little bit harder to get approved but with our expert knowledge and wide lending panel, we are committed to helping you get IVA car finance. When you enter into an IVA, you are promising to repay your old debts and can look favourable in potential lenders eyes are you want to resolve your past mistakes.
With an IVA and it’s financial problems, usually comes a bad credit score and it just so happens that we are bad credit car finance specialists! We help people every day get approved for the car finance deal that’s right for them. Using our wide range of lenders and our specialist car finance team, we match you up with the most suitable lender. We have finance lenders who accept people who have IVA’s.
Can I keep my car on finance on an IVA?
If you already have a car on finance and enter into an IVA, then you may be wondering what might happen to your goods such as your current car. When you enter into an IVA you will usually be asked if you have a car on finance and if you need your car. If you do need your car to get to and from work and then there earn an income, then you will usually be able to keep your car. If you have a car that is a Hire Purchase agreement, then you will usually be allowed to keep the car and continue to make your payments in full each month. They may also as you to increase the monthly contributions of your IVA once your hire purchase deal is paid off, if your IVA still remains after your car finance deal is completed.