| T O P I C R E V I E W |
| stonecoldbroke91 |
Posted - 11 October 2009 : 21:18:16
I will be going to court on November 9th to declare Bankruptcy after failing my IVA. I have a car on finance of which my payments are up to date. The car is worth about 4k and i owe approx 2k still. The next car payment is due on 11th November, should I continue to pay this. I need my car to get to work. Will they definately take my car off me? Not sure what to do, anyone know the answer?? |
| 5 L A T E S T R E P L I E S (Newest First) |
| chester2005 |
Posted - 12 October 2009 : 23:08:36
as i said , the car finance is secured against the car , it is actually theirs not yours... so if you settle it beforehand you are not actually favouring them. you are just reducing the paperwork for the OR
Dave
Don't worry or know that worrying is as effective as trying to solve an algebra equation by chewing bubble gum.(Baz Lurman)
RevivaUK helped me through it all i can't recommend them enough!! |
| stonecoldbroke |
Posted - 12 October 2009 : 16:22:55
Once again thanks for your reply. I will call for a settlement figure and take it from there. The only thing that does concern me is that the OR will not look too favourably on me selling the car and favouring one creditor over the others. As this is the impression I get may happen and I dont want to end up with a BRO just because I have done this. |
| chester2005 |
Posted - 12 October 2009 : 12:22:16
the HP agreement is a secured debt.. it is secured against the car if there is equity in the car then they will take it back and sell it and give the balance to the OR because after BR any assets become the property of the OR.
As long as the finance is settled when the vehicle is sold there is no problem and that way you keep control of everything, call the HP Company and get a settlement figure then go to a few garages and see if they want to buy it . this will give you an idea how much equity is in the car and what you would have to play with to buy another car of value less than £2000
Dave
Don't worry or know that worrying is as effective as trying to solve an algebra equation by chewing bubble gum.(Baz Lurman)
RevivaUK helped me through it all i can't recommend them enough!! |
| stonecoldbroke |
Posted - 12 October 2009 : 11:39:51
Thank you for your reply. It is an HP agreement for definate. I thought about selling the car myself and doing what you suggested but didnt thing I would be allowed to do this?? I thought it would look like im favouring a creditor by paying off the agreement so not look to good when i speak with the OR?? If I can do this then I will but dont want to get into trouble. |
| chester2005 |
Posted - 11 October 2009 : 21:55:09
Hi and welcome to the forum
your HP company will most likely have a BR clause in the paperwork and want to take the car back. sell it and forward any equity to the OR who may allow you £2000 back to purchase a car if you need it to get to work.
Is the car definately on a HP agreement or is it a fixed sum loan agreement?
There is a big difference!!
I would suggest you do not pay any more to the HP company and personally i would check the paperwork if it is HP have it sold pay the finance off and replace the car yourself with one for less than £2000.
If it is FSLA sell the car buy another for less than £2000 and use the rest for court fees etc
Check the paperwork
Dave
Don't worry or know that worrying is as effective as trying to solve an algebra equation by chewing bubble gum.(Baz Lurman)
RevivaUK helped me through it all i can't recommend them enough!! |
