Hi Could someone please advise me I have car on hp bought car last June paid £2000 deposit and £6000 car finance payments are £157.00 per month. I do need a car for work - what am i best doing? Will the OR take my car and sell it don't think in the climate he will make much or do I try and sell it now and if it does make any money put it to a cheaper car or my br fees? If the car will def go am I best not paying the car finance while i go br and wait till it gets repossed as the money I don't pay there will help towards fee's. If I don't get a car now am I allowed to use a family members car if they put me on there insurance till i can afford another?
It will depend on whether there is any "equity" in the car. If the outstanding balance outweighs the value of the car, then the Official Receiver will not even bother taking the car as it wont bring any money in. If there is equity then they will take into consideration how much is available and the cost of replacing the car. Generally speaking, they will allow for a replacement car to a value of £5000. So if the "equity" in your car is less than this value I dont believe they will.
Thank you for your reply, I am a little confused as I have read lots of other posts on here and the gneral view seemed to be you can't own a vehicle over £2,000.00 ? If there is equity in the vehicle could a family member give the difference to the OR and will the hp company cancel my contract or continue to allow me to carry on with payments? Thanks again for advice
I would really recommend you double check with the local OR's office to confirm the above response as I believe it is a little incorrect.
1. The HP agreement will probably have a "bankruptcy clause" in it allowing the HP company to cancel the agreement and take back the car.
2. The OR is interested in either equity in the car ( value left after sale and settlement of finance) so although there may be no equity the OR still may have an issue with the HP because by paying HP payments this detracts from the ability of contributing to the debts via an Income Payment Agreement.
You need to tread carefully and do some thorough research, and speak to the HP company to get their policy.
I would also be VERY confident that if you were toi attend court with £5,000 or equity in the car that it would almost certainly be claimed by the Official Receiver.
The best option for you would be to have the HP company agree to continuing the contract and the family member assist on a monthly basis with say £60 towards the HP so the OR wouldn't get grumbly about the contributions.
Hi Paul, Yhanks for that and also my ex business partner spoke to you last week and said you were so helpful and kind she wanted me to pass on her thanks also. I think because my case is so complicated if you recall previous post and at moment working silly hours trying to build new business mi thinks will be taken away by men in white coats shortly if don't get the bankrupcy sorted I will ring your office tomorrow to see about asking you to help us through this. Regards J
HP Vehicle
Posted - 22 February 2009 : 19:14:40
