I was declared bankrupt in December 2011. Part of my debts was an HP agreement on a car which was reposessed by "Voluntary Termination" in January 2012 and I am now being chased for the shortfall of over £2k.
When I spoke to the Official Receiver, they said that they had no interest in the vehicle and I asked if I should just hand it back and they said that would be OK but did not advise that I would be liable for any shortfall!
Obviously I can't afford this and I don't know where I now stand with this.
Can the "agreement" stand as this would be seen as favouring a particular creditor now that the debt is not secured??
If you have signed a new agreement with a creditor after the commencment of the bankruptcy order then yes you could be liable for a debt, if you gave the car back without signing anything then youcould not be liable for anything.
BTW, the OR does not provide advice ,if you needed advice you should contact an appropriate advisor
As debtinfo has said, if you didn't sign anything with the HP co after your bankruptcy order date, then the shortfall will be included in your bankruptcy.
Great - seems like I'll have to start arguing all over again with the HP company.
Realistically what can they now do? They are aware of the bankruptcy and they were the ones that were in a hurry to get the car back! Wish I'd just left the bl**dy thing to rot away now!
O.R did not advise that I would be liable for shortfall which I can't afford
Posted - 22 April 2012 : 18:23:53
