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introuble
Junior Member
United Kingdom
226 Posts |
 Posted - 30 June 2008 : 06:50:04
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Hi,
If I have amounts owing on a HP agreement and these were paid off prior to BR. Will I be allowed to keep them within BR as Tools of Trade?
Or is it specific to each case. If I cannot keep them then is there any point trying to pay them off before hand. I may be able to get my parents to settle this finance to secure my ability to trade post BR. It seems that if I leave the assets and allow the OR to deal with then less money may be realised for that specific creditor than me settling the finance. However is this seen as preference although as it is a specific HP agreement I assume it is not? The asset is worth about £10,000.00. I also have a van that is the same as above re outstanding finance and I may look at the same if my parents can pay. The van is worth about £5500.00.
I am a sole trader.
Ta in advance In troubble |
Edited by - introuble on 30 June 2008 06:58:25 |
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Suzanne
Average Member
United Kingdom
869 Posts |
Posted - 30 June 2008 : 09:17:42
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Hi introuble
£10,000 is a high value to claim as exempt in bankruptcy. What is the equipment?
It may be better for your parents to purchase the equipment from the HP company in order for you to continue to trade.
I don't beleive the preference rules relate to HP.
With the van it is also of too high a value to claim as exempt, but your parents would be able to buy the difference of around £2,500.
With both the equipment and vehicle, they are not yours until the HP is paid off, so the HP company can at any time take action to collect them until paid in full. It has been known, however, for finance companies to allow bankrupts to continue paying the agreements despite bankruptcy.
Is there any equity in the equipment and van after allowing for oustanding HP.
Suzanne Stocker
Bankruptcy Manager
Jones Giles Ltd
www.jonesgiles.co.uk
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antp
Junior Member
United Kingdom
216 Posts |
Posted - 30 June 2008 : 15:24:56
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| i went bankrupt recently and had a van which was worth about £5k. every case is different but I was expecting the OR to take it but as I am a sole trader i was allowed to keep it. i think also my own estimation of the price is with rose tinted specs. the OR - i am led to believe - passes things like vans off to a local agent who will auction it at the local van auctions, where perhaps the price they would receive is a lot less. |
Edited by - antp on 30 June 2008 15:25:50 |
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JulianDonnelly
Junior Member
United Kingdom
325 Posts |
Posted - 30 June 2008 : 15:28:37
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Hi Introuble,
Remember, vehicle finance is usually HP which is classified as secured borrowing in BR. Therefore, the OR will look at the finance from the perpective of (a) is there any equity in the vehicle? and (b) if the BR wasn't paying for the van, would that make a huge difference for an IPA/IPO?
These are generally considered on a case-by-case basis. Keeping a vehicle worth £10k is unusual, but not unheard of.
Regards
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk |
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antp
Junior Member
United Kingdom
216 Posts |
Posted - 30 June 2008 : 15:33:36
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| Yes that sounds true, my van was paid for by a loan and was only a couple of payments from maturing. |
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JulianDonnelly
Junior Member
United Kingdom
325 Posts |
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Topic |
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Tools of Trade
