1. is the car on HP or was it financed through a MOTORLOAN? quite often motorloans are unsecured debts meaning that the car in unencumbered.
2. If it is HP then the terms of the HP agreement will state somewhere that the agreement is terminated and any equity goes to the OR and any shortfall is taken care of in the BR.
3. OCCASSIONALLY the OR will aks you to deal with then handing back of the car and occasionally the finance company would prefer you carried on paying. So if you have disposable income it may be possible to retain the car depending upon the type of car and the monthly payment.
4. It may be possible to transfer the HP into someone elses name prior to the Br provided that there is NO asset value in the vehicle otherwise it may be seen as a transaction under value
Paul Johns Assisted Bankruptcy Specialists Reviva UK www.revivauk.com
If a car is unencumbered because it was bought with aa motorloan, should it still come up when someone HPI checks it if in theory it's not HP? thanks del
You also need to decide FIRST if you cannot affored to keep it because if it isn't included in the Br and you later get it reposessed then you WILL be chased for the debt - not the best way to start.
If you feel you can't afford it ( and by asking the question you have probably answered it for yourself) you can keep a car in Br but you need to find a way of paying for it before Br as you certainly couldn't take out HP now and hope to keep it in Br
Paul Johns Assisted Bankruptcy Specialists Reviva UK www.revivauk.com
HP Cars
Posted - 11 June 2008 : 16:05:40
