| T O P I C R E V I E W |
| bill.pc |
Posted - 20 August 2009 : 20:39:44
i have a car on hp and have been told by the finance company that it cannot be included on bankruptcy forms is this true? |
| 4 L A T E S T R E P L I E S (Newest First) |
| CMJ |
Posted - 22 August 2009 : 12:30:31
Hi
We were allowed to keep our car on HP the OR had no interest in the vehicle, we were told to ring the finance co and explain situation, which we did they were quite happy for us to keep vehicle and carry on payments as normal. The OR even allowed us the finance payments a month within our allowances as we need vehicle for work. Our plans now are to try and pay of balloon payment at the end of the finance arragement and therfore eventually own the car out right.
Good Luck
Michelle
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| Melanie.n |
Posted - 21 August 2009 : 09:15:04
Usually there is a clause in the HP which results in the HP agreement being cancelled upon the making of the bankruptcy order. Which would result in the car going back to the company and the shortfall under the agreement being included in the bankruptcy.
The OR will sometimes allow a HP agreement to continue (with the agreement of the HP company) if the vehicle is deemed by the OR to be essential to enable you to continue in work. But as a general rule the HP would be cancelled and the vehicle returned to the company (though in practice they can take up to 3 months to collect the vehicle!)
Melanie Nicholas
28 years insolvency experience - 23 of which in the Insolvency Service
- Insolvency Manager
Jones Giles
email me at melanienicholas@jonesgiles.co.uk
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| gettingoutofdebt |
Posted - 21 August 2009 : 07:17:21
The finance can only be included if you are willing to give up the car. |
| debtinfo |
Posted - 20 August 2009 : 22:08:02
the debt is secured on the vehicle, this means that if you do not keep up payments then they can sell the car (subject to due process). Any shortfall after a HP car is sold will be included in the bankruptcy. It just means that they have the rght to recover from the asset that the debt is secured on (and only that asset) |
