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T O P I C R E V I E W
Zed.1
Posted - 27 November 2010 : 02:13:26 Hello forum, I have a car on HP which I no longer want. I have paid for over half of the balance. In 24 months I have option of handing car back or paying 6k. The car won't be worth that. Can I just hand the keys back to HP and walk away?
Background The HP loan was included as part of my BR but the OR was not interested in it. I had a clause on my HP agreement that stated if I went BR they could terminate the agreement. After speaking with the HP company said I could continue with the agreement as long as I do not miss any payments. I had not missed one to date. My employer is offering a company car so the HP car is surplus. If I walked away from the HP agreement are there any legal comebacks? Even if I am now discharged from BR?
Would really appreciate a forum expert responce. Thanks in advance. Zed
3 L A T E S T R E P L I E S (Newest First)
Zed.1
Posted - 27 November 2010 : 16:01:24 Thanks guys. Yes I should have mentioned the outstanding balance on the HP was listed on my SOA, so I assumed it was the same as with property, ie if reposessed and sold for less than the outstanding balance then I am not liable to pay the shortfall.
But whats the case when I have continued to pay down the balance post discharge, and its now some months later and the balance stated on the SOA is different to the new lower balance, if a shortfall still results after repossession does that still fall within my BR?
Thanks again
chester2005
Posted - 27 November 2010 : 15:39:58 if the potential shortfall was listed on your SOA then as it is a debt incurred before BR when it materialises as am unsecured debt after the car is repossessed and sold for less than its value it should be included in your BR estste.
Dave
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Blackie
Posted - 27 November 2010 : 09:59:51 Hi Zed 1
The issue here is nothing to do with the bankruptcy but the HP contract. On certain contracts, if you have paid over a certain percentage of your total repayments, then you are entitled to return the car at no further costs to you. If such a clause doe not exist, you would be liable for any shortfall ie. the difference between the value of the car and the amount outstanding on the HP.
