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middleage
Starting Member
United Kingdom
2 Posts |
 Posted - 15 February 2009 : 21:10:13
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| am considering bankruptcy,have no assets,unemployed,with £25,000 and a single mum.would anyone know this please;if i volunterally handed back my hire purchase car,would i be allowed use of a relatives''car and the expenses for it,petrol,tax etc in my i&e? |
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debtrider
Junior Member
494 Posts |
Posted - 15 February 2009 : 21:21:41
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Hi Middleage
I do not know whether the OR would allow car expenses unless it was essential for you to have a car, for employment or a medical condition, especially if it was someone else's car.
The OR would have no interest in your current car on HP, but he may allow you to keep up the payments on the car if it is essential for your needs. You would also have to get an agreement from the HP company to continue making payments even if the OR allowed it.
debtrider |
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Reviva UK
Advanced Member
United Kingdom
2452 Posts |
Posted - 16 February 2009 : 01:13:20
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Hi
worth just double checking that the car is actually HP and not purchased under a FIXED SUM LOAN AGREEMENT, these are actually personal loans used to buy cars and not HP
Paul Johns
Assisted Bankruptcy Specialists
Reviva UK
http://www.revivauk.com
Real People ..... Real Debt Solutions
www.revivauk.com |
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middleage
Starting Member
United Kingdom
2 Posts |
Posted - 16 February 2009 : 18:43:06
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Hi Debtrider
Thanks for the reply.
Sorry i do have the FIXED SUM LOAN AGREEMENT,and not hp as previously thought.still considering seriously handing it back,or should i wait for or to take,not that its worth that much.£2000 if that!
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debtrider
Junior Member
494 Posts |
Posted - 16 February 2009 : 20:10:42
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Hi Middleage
If you have a fixed sum loan agreement, which I also had on my car then this will be included in your bankruptcy.
Personally I cannot see how you can hand the car because as there is no one to hand it to.I would imagine the outstanding loan is more than the car is worth. So if you sold the car and paid the bank the monies from it, the bank would still be chasing you for the shortfall so you would be no better off. Remember this is your car and is an asset; the bank wants their money not the car.
At the end of the day the bank will be chasing you for the outstanding loan balance not the car itself.
So you are probably going to have to keep the car until the OR decides what to do with it.
Is the car essential for your needs? If so then the OR may allow you to keep the car if the value does not exceed £2000.
Have you stopped payments on your car? If so then as I said the bank or loan company will be chasing you for the outstanding debt, and will take the normal course of action any other creditor would take in time.
Do you intend going bankrupt?
There could be so many different scenarios to the outcome of this dependant on what you decide to do.
debtrider
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Reviva UK
Advanced Member
United Kingdom
2452 Posts |
Posted - 16 February 2009 : 21:18:12
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Hi
As it is a fixed sum loan agreement the car is actually yours and not the finance companies. If you were to give it to them this would be preferential treatment and therefore unfair on the other creditors.
If you do not need the car you could sell it, use some of the funds to go Br and give the balance to the OR.
If tyou do need the car and it is worth £2k or less then the OR would probably allow you to keep it. The loan ( and it is a personal loan ) would be included in the Br
Paul Johns
Assisted Bankruptcy Specialists
Reviva UK
http://www.revivauk.com
Real People ..... Real Debt Solutions
www.revivauk.com |
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am considering bankruptcy,have no assets,
