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T O P I C R E V I E W
yorkshireladatheart
Posted - 25 September 2008 : 23:54:23 Thinking seriously about going bankrupt. Debts as follows 9k to hsbc personal loan, 6k tax credits, 2k solicitors, about 3k left on hp the car is probably worth that exact mount now. I know my student loans would not be took into account with the BR but would they nec take car I have a large family and its probably cheaper having the car. IVA not possible as have more going out then coming in.
1 L A T E S T R E P L I E S (Newest First)
John
Posted - 26 September 2008 : 03:56:03 Hi the £17K of unsecured debt would be written off in bankruptcy. The HP on the car is a secured loan and therefore outside of bankruptcy as are your student loans. The problem is that the Official Receiver would have to write to the HP company to inform them of your bankrupt status. Almost all HP agreements have a clause which gives the lender the right to terminate your agreement forthwith and reclaim the car. They would sell the car and any shortfall between sale price and what you owe would be added to your bankruptcy and written off.
That said the HP company may be persuaded to continue with the agreement, it is the lenders decision not the OR's. The OR may, if he deems the car unnecessary, encourage them to reclaim the car as your disposable income would be increased each month to the tune of the sum you are now paying in HP payments and thus increasing your chances of being able to contribute to an Income Payment Agreement to the benefit of your creditors. That said if you can prove that you need a car for work the OR may decide that on balance he will allow you to keep the car and continue to pay towards the secured debt. This does not mean that the HP company will necessarily agree.
