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clare.py
Starting Member
5 Posts |
 Posted - 04 February 2010 : 20:29:48
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Hi, I am hoping to use a debt relief order to clear my debt that i am struggling to repay. I am currently using the CCCS to pay back minimal amounts under an agreement but not an IVA. They advised me that although i qualify for a debt relief order, i can't get one due to my car being on under HP. They advised that this is classed as an asset evem though i don't own the car until the end of the agreement. Even though it is in slightly negative equity anyway. Is this correct?
Many thanks in advance for your help |
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gettingoutofdebt
forum expert
2418 Posts |
Posted - 05 February 2010 : 07:54:22
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Yes, that is correct. The value of a car cannot exceed £1000 in order to qualify for a DRO. Even if you owe more than the value of the car to the HP company if the car is worth more than £1k you won't be able to have a DRO.
Can you sell the car and get one worth less than £1k? If this is all that is stopping you getting a DRO is will be much better than declaring BR just because of the value of your car. |
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clare.py
Starting Member
5 Posts |
Posted - 05 February 2010 : 16:49:48
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Hi Thanks for your reply, i was thinking about maybe exchanging the car to reduce my outgoings anyway. If i sold it got a DRO and then got a new cheaper car would that work. I forgot to say in the earlier post that the HP is in my dad's name so the rate was better however the car is registered as mine, does that still count? Sorry to be confusing
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gettingoutofdebt
forum expert
2418 Posts |
Posted - 05 February 2010 : 17:15:32
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If you had a car worth less than £1k and you also were ok with the other DRO criteria then you should be able to get a DRO.
If you declared BR then your father would be considered the owner of the car as he is the one who bought it (via HP) even though you are the registered keeper but I don't know if that is the case with a DRO as well.
I would recommend you have a chat with the CAB. There are only a few companies that can arrange a DRO and the CAB are one of them so they will be able to advise you regarding the car. There are also a few other companies who can set up a DRO and these are listed at http://debtrelieforder.org.uk/debt-relief-order-competent-authorities |
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Housing
Senior Member
United Kingdom
1399 Posts |
Posted - 05 February 2010 : 17:22:36
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Hi,
gettingoutofdebt is right - the CAB will be pleased to assist you.
Good luck, Richard
quote:
Originally posted by gettingoutofdebt
If you had a car worth less than £1k and you also were ok with the other DRO criteria then you should be able to get a DRO.
If you declared BR then your father would be considered the owner of the car as he is the one who bought it (via HP) even though you are the registered keeper but I don't know if that is the case with a DRO as well.
I would recommend you have a chat with the CAB. There are only a few companies that can arrange a DRO and the CAB are one of them so they will be able to advise you regarding the car. There are also a few other companies who can set up a DRO and these are listed at http://debtrelieforder.org.uk/debt-relief-order-competent-authorities
"Life is generally something that happens elsewhere" (Alan Bennett - author and one of my best heroes!!) |
Edited by - Housing on 05 February 2010 17:23:01 |
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clare.py
Starting Member
5 Posts |
Posted - 05 February 2010 : 18:38:33
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Thanks for the replies. you have been a great help its much appreciated, i will let you know what happens. Thanks again
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clare.py
Starting Member
5 Posts |
Posted - 18 March 2010 : 21:02:35
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Hi, just wanted a bit more info to clarify things. So i have now bought a new car, or an older car to be precise. My current car is going back to the dealers. What i wanted to know is how do they value the price of my new car. I know that they use the parkers guide but which valuation do they use. Is it the private trade valuation they use or the dealers valuation.
Any help is much appreciated |
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Melanie.n
forum expert
United Kingdom
1282 Posts |
Posted - 19 March 2010 : 09:43:22
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Its what a dealer would give you, value, not a private sale value
Melanie Nicholas
29 years insolvency experience - 23 of which in the Insolvency Service
- Insolvency Manager
Jones Giles
email me at melanienicholas@jonesgiles.co.uk
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clare.py
Starting Member
5 Posts |
Posted - 19 March 2010 : 19:24:03
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| Hi Melanie, thanks for replying. So am i correct in saying that if i purchased the vehicle for £1000 and then decided to sell it. I wouldn't get this amount for it. I am assuming maybe incorrectly though that if i took it to a dealers now then i would get about £700 for it. Am i on the right lines or am i barking up the wrong tree? |
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Hi, I am hoping to use a debt relief order
