Advice and Tips

How to get Car Finance when you’re in an IVA

Advice and Tips // 31 March 2016

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If you’re in an IVA, this means that you have been entered into an individual voluntary agreement.  An IVA will then make sure all interest and charges are frozen at 0%, where you will have agreed to pay as much as you can afford on a monthly basis. Essentially it’s a contract, where a decision is made on how much you pay back, all depending on your situation. You can also choose to pay back the remainder of your debt by doing a final settlement early.

Unfortunately though, with IVAs also come consequences. IVAs will stay on your record for six years, even if you do settle the full amount at an earlier date. If this happens, some companies may choose not to provide you with any credit or finance due to your credit history.

So if you’re in an IVA, how can you get car finance?

At Moneybarn, we will take your IVA into consideration as well as factors such as your current circumstances and the car you want to purchase. You may still be able to get car finance, however, there are practical aspects which are related to car finance and IVAs that you should consider before you decide to proceed.

To apply for car finance whilst being in an IVA, you’ll need to make sure you get the approval of your Insolvency Practitioner. They will then be able to help you with your application further, providing you the help you need in order to get the best chance of approval. Your Insolvency Practitioner will also check whether you have sufficient financial funds available to determine whether you are able to afford a hire purchase agreement without it impacting your IVA contributions.

If you would like to know more about IVA car finance or if you’d like to discuss any part of the process and whether you are eligible, then contact us here at Moneybarn and we will be more than happy to advise you further.