Hi me again, On behalf of my friend i just want to query something. She is planning to give up her house so will be stopping paying her mortgage payments. She also has a car on HP. For which she is paying £205 per month, one year left if she intended to pay the whole amount. Car is worth approx £2500 but does have some damage. She was planning to carry on paying the HP as the car is needed for her shift work and unsociable hours. Would the OR take the car or would the OR consider it preferential payment if she were to continue paying it? What is her best option? I don't have any knowledge of HP etc. Any advice gratefully received. Thanks.
The trouble is, even if the OR said she could keep it and carry on the HP payments, you might find the company will take it back anyway. most HP agreements have a clause in them that in the event of bankruptcy, they have the right to repossess the car
the first thing she needs to do is read the HP agreement carefully
Thanks Jane. If she stops paying everything, mortgage, secured loan on property and her HP payments would she then be able to use this money to buy a cheap run around even though she would still effectively have her HP car upto repossession?
Yes, she could use the money to buy a cheaper car although it would still be at the discretion of the OR as to whether she would be able to keep the car or not. Even if the car is worth less than £2k the OR can still take it if they don't believe that a car is needed.
That's great thank you. Yes I think she should chance it and get a cheap run around. I am sure she can justify keeping a car as she does work shifts and has to travel late at night etc. Thanks again.
Car on HP
Posted - 06 September 2009 : 13:27:29
