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T O P I C R E V I E W
michelle_bb101
Posted - 28 February 2009 : 19:55:22 my car is on hp what will happen to that
1 L A T E S T R E P L I E S (Newest First)
John
Posted - 28 February 2009 : 20:23:23 Hi
unless there is equity in the car the OR will have no interest in the car itself. Although the OR will be mindful of how and to what degree the HP has to be funded per month.
The OR will inform the HP company and most HP agreements have a clause which allows the lender to repossess the vehicle and terminate the agreement once they have been notified of your bankrupt status.
If there is no equity it would seem illogical for a lender to repossess then sell at auction as they will lose out. However it is the policy of some lenders to do just that. Others will let you keep it as long as you keep making the repayments.
Make sure your agreement is HP and that such a clause is included. If the answer is yes to both then prepare to lose it although as above it's not a foregone conclusion.
If there is more than £2.5K in equity the OR may force a sale, pay off the finance outstanding, pass £2K to £2.5K back to you for a replacement and keep the rest for the benefit of your creditors.
