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duncans
Posted - 07 October 2008 : 18:10:35 Hi, My brother bought a car on finance a couple of years ago but when he lost his job the car was reposessed and sold at auction. The solictors acting for the finance company are now demanding a settlement figure of around £4500 or they will make him a bankrupt. He has offered to set up a payment plan now he is back in employment but has been informed that this is not an option. What is thebest way to proceed, he has 21 days to make full payment or a court date will be set to apply to make him bankrupt. The other issue is that it is likely that the finance plan was mis-sold as he was never in a position to afford the payments.
2 L A T E S T R E P L I E S (Newest First)
John
Posted - 07 October 2008 : 19:49:46 Hi Duncan as the car has been repossessed the outstanding shortfall against the original borrowings is an unsecured debt and as such the lender is within his rights to demand payment or commence bankruptcy proceedings. It would be interesting to know what the original monthly payments were and what your brother has offered by way of a payment plan.
If the two are fairly close I would doubt that a judge would allow the creditor's bankruptcy petition to stand. And if this is the case the lender will likely be aware of that fact. It would cost the lender around £2K to complete the process for a maximum return of £4.5K.
I can't be sure but if the offer of repayment is reasonable the lender could just be posturing in the hope that your brother will find the full amount from somewhere rather than be declared bankrupt.
Posted - 07 October 2008 : 18:14:42 Hi Duncans and welcome
Im not 100% sure on how that would affect your brother, but it may be worth giving our helpline a call, its free and they do get back to you. That way you can get better one to one advice and find out more of the options available to your brother and see what the next step would be. Hope that helps and good luck.
Jo x Your Mother Hen :-)
Please visit my blog for info on how I got here and other information to guide you through from my experience called:
"Mother Hen's New Debt Free Life with Links and added info on Bankruptcy!" available to view at:
