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ginger
Starting Member
United Kingdom
13 Posts |
 Posted - 01 March 2009 : 12:43:01
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Hi,
I have a car worth possibly worth 6000 to 6500 and hp of 5150k I have contacted the hp company and they inform me if I go br they will not allow me to keep the car and continue paying. I will have to go br shortly but what is the best to do now wait while I go br and let the OR deal with it or try and sell it now? My brother as said he will help me and pay off the finance put the car in his name and allow me to use it as a named driver and when i get back on my feet pay him back or failing that he can sell the car at a later date. Would that be frowned upon by the OR am I better just getting an old car the only problem is I do a lot of driving in my job and needs something reliable. Please advise as I am running out of time many thanks |
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John
New Member
United Kingdom
73 Posts |
Posted - 01 March 2009 : 13:39:28
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Hi
let's assume the car is worth £6.5K.
There is £1350 of equity in it which the OR will want to realise if your brother takes over the payments (the lender would have to agree to this).
The lender has already informed you of their position so you will not be permitted by them to keep it.
You should sell it pre bankruptcy, pay the secured lender and buy a replacement with the balance.
If you declare bankruptcy and it is repossessed it will probably fetch less than the sum owed at auction thus leaving you with no car and no funds to replace it, plus an increased indebtednss into the bargain albeit this would be written off in your bankruptcy.
John White
England Jackman & Spacey |
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Skippy
forum expert
United Kingdom
3290 Posts |
Posted - 01 March 2009 : 13:42:00
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John, I didn't think you could sell a car that was on HP as it doesn't actually belong to you and it would flag up on an HPI check?
Tomorrow is a mystery, yesterday is history, today is the present, a gift to make the most of.
View my blog at http://skippy13.blogs.bankruptcyhelp.org.uk/
20 IPA payments made, 16 to go - on the home straight! |
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Reviva UK
Advanced Member
United Kingdom
2452 Posts |
Posted - 01 March 2009 : 14:42:44
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you can sell the car even though it is on HP BUT YOU MUST clear the outstanding finance immediately
Paul Johns
Assisted Bankruptcy Specialists
Reviva UK
http://www.revivauk.com
Real People ..... Real Debt Solutions
www.revivauk.com |
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Skippy
forum expert
United Kingdom
3290 Posts |
Posted - 01 March 2009 : 14:45:57
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Thanks for clearing that up for me Paul. I knew there was something funny about selling HP cars but I wasn't sure how it worked.
Tomorrow is a mystery, yesterday is history, today is the present, a gift to make the most of.
View my blog at http://skippy13.blogs.bankruptcyhelp.org.uk/
21 IPA payments made, 15 to go - on the home straight! |
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ginger
Starting Member
United Kingdom
13 Posts |
Posted - 01 March 2009 : 15:11:10
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| Thanks all x |
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Melanie.n
forum expert
United Kingdom
1282 Posts |
Posted - 02 March 2009 : 09:36:46
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Hi Ginger
If prior to your bankruptcy - ie you have not yet filed your petition, your brother would be able to contact the HP company concerned and enquire as to whether he can 'adopt' the agreement as you state, provided he is bl to continue the payments and the agreement is transferred to his name you would be able to continue with the use of the vehicle, with your brothers permission, nice brother you have!
This process is often carried out by a family member or close friend or parter, and the HP company are usually more than happy to oblige as they are only concerned with having the payments amde which to them is far more preferable than having the vehicle returned! But you have to do it prior to filing your petition as the hp agreement will be void on the making ot the BO
Melanie Nicholas
28 years insolvency experience - 23 of which in the Insolvency Service
- Insolvency Manager
Jones Giles
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HP Car
