If you are facing a serious debt problem and after consulting with an experienced debt advisor, like Debtsolver, you find an IVA to be the debt solution that’s best suited to your circumstances, you’ll need to know how it’ll affect your assets. In relation to a petition for bankruptcy, an IVA (Individual Voluntary Arrangement) affords you a far greater degree of protection for your assets. So, providing you uphold your end of the deal and maintain the repayment plan that has been agreed, your assets will remain, on the whole, untouched.
For the majority of people, the most valuable asset they own will be their home. In the case of your IVA, it may be necessary to release some of the equity you hold in order to service the IVA payments but you will keep your home. Of course, if you fail to keep up with the IVA payments you are at risk of bankruptcy and your assets would pass to the Official Receiver or Trustee.
For anyone whose car was bought through a finance agreement and you’re still paying for it off, the payments will usually be factored into your IVA and you’ll be able to keep making them. As with any change in your financial circumstances, you must keep your Insolvency Practitioner informed. Your IVA payments will be adapted to suit these new circumstances. So, if you finish the finance agreement during your IVA, you’ll be able to afford to make a greater payment towards the IVA.
As is the case with rented property, if your car is deemed to be overly expensive, there is a chance that you’ll have to go for a cheaper alternative and make a greater contribution to your debt repayment. It’s all based on your circumstances though. There’s no single answer that suits everyone because everyone is in a different financial situation. It’s best to talk to a debt advisor about your specific debt problem and work out the best solution for you.