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Shaun.09
Starting Member
1 Posts |
 Posted - 21 January 2011 : 16:14:15
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| i have a car that i bought with a fixed sum loan from black horse.i havent made a payment for nearly 2 year now and iam considering bankruptcy.was going to sell the car but black horse have an interest in it.would i be able to sell the car to a private buyer without there been any problems for the new owner. |
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Sarah.12
New Member
United Kingdom
58 Posts |
Posted - 21 January 2011 : 16:52:14
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Hi Shaun
Why don't you hand the car back to Blackhorse and let them sell it for you? If there is a shortfall you will be liable for this until you go bankrupt anyway. I actually work for Blackhorse so know a little about it.
Sarah |
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Richard P
Senior Member
United Kingdom
1701 Posts |
Posted - 21 January 2011 : 18:22:34
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Hi Shaun
you need to read the small print of the lease loan,hp agreement, or whatever they have called the document particular interest to the time that you have had the loan, payments that have been made and the payments that are left. what are the clauses in the event of non payment (for 2 years thats long time)
different critera applies at different stages of the loan.
If the loan is written in such a way and you give the car back to Black horse have you shown preferential treatment to one creditor above another ?
If the loan is written another way and you have not reached one of the key release points in the small print then the car must be returned to Black horse
It may be in your interest subject to the small print of the loan to sell the car and use the proceeds to pay for bankruptcy fees. The OR will want to know what you have done with the money.
depends on age and perceived value but it may also be to your advantage to try and keep car
having read the small print and you are still confused scan the document to one of the experts and ask for guidance.
regards Richard |
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Bigal4787
forum expert
United Kingdom
641 Posts |
Posted - 21 January 2011 : 18:33:20
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Hi Shaun,
from what I understand, a fixed sum loan agreement means that you have ownership of the goods as soon as you took possession of the car, which means that if you fail to pay the instalments the seller or provider of the credit facility has no right to take back the goods, only to pursue the purchaser for the money owed.
Such goods can be sold by the OR as trustee, the original seller or credit company then having an unsecured claim in the estate for the outstanding balance.
So basically, you have an unsecured loan, and an asset that could be claimed by the OR.
Big Al
Insolvency examiner with the Insolvency service from April 2008 - July 2010.
If you need help completing SOA's(statement of affairs) or PIQ's(preliminary information questionnaire) if you've been declared bankrupt, or anything else and you're within 30 miles or so of Warrington, then please contact me via my contact details in the expert page for futher details"
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Reviva UK
Advanced Member
United Kingdom
2452 Posts |
Posted - 21 January 2011 : 22:00:09
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Hi
I can confirm that a fixed sum loan agreement is an unsecured loan - you have elected to purchase a particular item with it ( in this case a car). Therefore the loan is not secured by the car.
You actually may find it difficult to sell the car because Black Horse & Santander are VERY KEEN to still register the car as being on finance with HPI.
The reason for this is:-
1. They know when you are looking to sell the car early and repay the loan early because you are likely to ask for a settlement figure BECAUSE you believe it to be Hire Purchase.
2. They have a chance at selling you more money when to try to settle early.
3. They also know when you have sold the asset purchased so they can monitor your payments.
If you are unsure I can check the HPI condition for you & advise accordingly
Paul Johns
Bankruptcy Specialists
Reviva UK
www.revivauk.com
08454 751 851
Real People ..... Real Debt Solutions |
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Selling a car bought with a fixed sum loan
