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| dean.cr |
Posted - 22 December 2009 : 17:52:54
Hi, I have a car on finance that is £1250 in arrears, monthly payments are £250, I went bankrupt in august and listed the car in the bankruptcy,as far as i am aware the official reciever has informed the car finance company. the agreement was for £16000 and i have already paid back over £8000, they have just sent me a letter telling me to clear up the £1250 i owe by the 6th jan otherwise they will seek a court order to take back the car, my question is this, will they bother to reposses the car as the actual value is probably only £6000 now and once sold at auction will probably only net them £3000 and by the time they have paid court costs and baliffs to collect will they deem it worth there while and also where do i stand as far as a court is concerned, i.e. would they see me as being in the wrong for not contacting the finance company and asking them to come and get the car, also could i be fined for not handing back the car of my own free will? Obviously i am using the car and want to keep it as long as possible. do you know how long it would take them to get a court order to reposses? |
| 4 L A T E S T R E P L I E S (Newest First) |
| John |
Posted - 24 December 2009 : 14:31:23
Hi
the matter is by now firmly between the HP company and you.
If you would like to try and hang on to the vehicle contact the lender asap and try and negotiate a repayment plan to incorporate the arrears.
You have done nothing wrong. Once the OR advises the lender of your bankruptcy and declares he has no interest in the vehicle the onus is on the lender to take action, if any, not you. If it were not for the arrears you may well have heard nothing from them.
However, bankrupts should be aware that in this scenario the lender, in accordance with the HP terms and conditions, can invoke the bankruptcy clause at any time. Thus, unless you have something in writing to the contrary, the lender could allow you to keep the car whilst monthly payments are being regularly recieved. Then one or two months before the HP agreement is settled in full they could repossess then and thus make more profit by sending it to auction!
John White
Independent Debt Consultant
Specialising in Bankruptcy - Various Services Available - Free Consultation |
| Housing |
Posted - 22 December 2009 : 19:50:35
Hi Dean.cr
Is the car on HP or a credit agreement?
I had a newish vehicle (2 yrs old). It was valued independently and sold by tender by the valuer. It was with Black Horse.
The net went to the valuer - he took his fee and the balance went to the OR for my creditors. The only loser was Black Horse and I am not proud of that - but I was not looking a gift horse in the mouth when when I was told by the valuer that the OR approved the purchase from the proceeds of the sale of my old car to buy a car up to £2K. I must say that made me feel humble and, of course, grateful.
What I am saying is that maybe your OR and the lender will come up with a similar arrangement.
I am sure some of the insolvency experts will post on what you may be entitled to.
I am happy to guide you or anyone else on housing issues - i.e. renting dealing with lenders and preventing losing a property - come back if you have any such issues.
In the meantime, regards to you and yours, Richard
"There are no problems - only solutions..." |
| debtinfo |
Posted - 22 December 2009 : 18:35:53
The replacement car thing does not apply to HP repossessions, If there is no equity in the car the OR will issue a letter stating that they do not wish to adopt the agreement, it is then between the bankrupt and the HP company. The HP company owns the car at all times until the final payment
Of course since the agreement was signed pre bankruptcy any shortfall resulting from a repossesion would become an unsecured debt in the bankruptcy |
| Richard P |
Posted - 22 December 2009 : 18:19:35
Hi Dean
the answer is yes the finance company will want to come to collect the car, if they dont the official receiver will want the car to sell.
continue using the car until OR or finance company contacts you(check insurance still valid look back on a previous thread by me relevant to they cancelled my insurance).
perhaps best to contact your OR, inform them of the situation about the car and ask for guidance.
The recovery company will then chase you with a letter and phone call and try to arrange a suitable collection time. If the OR does not provide guidance, Make the appointment with them and keep to it, you dont want the hastle.
Have you arranged to obtain a suitable £2000 replacement, i have read previous threads when the OR sold the car and gave an allowance back to the bankrupt to purchase a replacement car but i do not know if finance was outstanding.
interesting question thou... The OR has control of your estate and finances, does the car belong to the OR ? or finance company ? or does possession count the biggest factor (9 tenths of the law)! |
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