I have a car on HP, its got 5 years left to run, I owe about 5K and the car is worth about 5K. If I went Bankrupt could I keep the car - I do use it for work sometimes but only about twice a month or so.
Hi It will be upto the finance company that you have the car with.If they are happy for you to carry on paying and your OR is happy about you needing a car then you could keep the vehicle.However most HP agreements have a clause terminating the agreement if you declare or are made bankrupt.Have a look at the terms and conditions If you hand it back or it is repossessed then any shortfall would be included in your bankruptcy Regards
I would say that it would depend on the value of the monthly payments.
If the car can be handed back and free up disposable income to pay into an Income Payment Agreement then the OR will look for you to hand the vehicle back and as Andy says include any shortfall within your Bankruptcy.
As you do not use the vehicle very often then I would expect the above to be the case.
If you required the vehicle on a daily basis and covered a great deal of mileage then the OR may let you keep the vehicle as you require a reliable car.
Car on HP
Posted - 18 March 2008 : 10:09:09
