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dazed and confused
Junior Member
United Kingdom
475 Posts |
 Posted - 24 November 2008 : 15:52:17
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Dear Forum
What happens to items listed as a 'Secured Creditor'?
I have taken out a Rental Agreement for a bicycle through my Employer's 'Bike to Work' scheme. I pay them a monthly amount, which is deducted directly from my wages and is Tax and NI free for 18 months, and then at the end of the Agreement the bicycle is mine.
The bicycle and equipment were worth £468 new 6 months ago.
I see it more as an Expenditure than as a Creditor but I don't want the OR to think I am hiding anything from them.
Would the OR want to take this from me?
Would they allow me to continue making the payments? |
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dazed and confused
Junior Member
United Kingdom
475 Posts |
Posted - 24 November 2008 : 16:31:52
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| Sorry, forgot to add the most important question - what would be the implications of this for my Employer? |
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Integrity
Junior Member
United Kingdom
201 Posts |
Posted - 24 November 2008 : 17:45:19
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Hi Dazed and Confused. I think in this case you need to look at the agreement. Is it a "rental agreement" or is a a loan agreement covered by the consumer credit act.
Also, what is the current value of the bike?
Is this now your only mode of transport?
Do you have any other vehicles registered in your name?
The answer to these questions will help in accessing the impact on you and your employer (is the agreement valid in bankruptcy? Some agreemnets have a clause which precludes Bankruptcy |
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dazed and confused
Junior Member
United Kingdom
475 Posts |
Posted - 24 November 2008 : 18:41:35
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Hi Integrity!
Thank you for your reply! I don't think I've 'seen' you here before!
In answer to your questions:
It says it is a 'Hire Agreement' regulated by the Consumer Credit Act 1974.
It says it is made between my Employer and Me.
It also says "No hire payments will be required. It will be a condition of this agreement that you agree to sacrifice part of your gross salary."
It also says "You must not:
Transfer, loan, sell or otherwise dispose of the goods during the Hire Period.
Use the goods as collateral against any debt or any similar claim or encumberance."
Current value of the bike - maybe about £300?
I have a car also which I use for work but due to me having 2 jobs and the nature of 1 of my jobs I use both the car and the bike.
Does this make things any clearer? I really don't know where to go with this...and obviously as it is my Employer it makes it even more tricky...
Any ideas would be much appreciated!!! |
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Integrity
Junior Member
United Kingdom
201 Posts |
Posted - 24 November 2008 : 19:25:55
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What stage are you with your bankruptcy?
It looks like a hire purchase agreement which is secured on the bycycle.
You may be able to negotiate with the OR with this one.
But, I understand from your post the biggest concern is with the employer. If the OR does not allow it your income will increase by the amount you are paying for the bike. The outstanding debt may be included in the bankruptcy and you may have to sell the bike-proceeds would go to all creditors.
I think these are the possible outcomes:-) |
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dazed and confused
Junior Member
United Kingdom
475 Posts |
Posted - 24 November 2008 : 22:18:20
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Hi Integrity!
Thanks again for your reply!
I am due to go BR on 05/01/09.
So it is a Hire Purchase Agreement then? Even if no Credit check was done and it is through my Employer?
Yes I was hoping I would be able to negotiate with the OR about it. I am willing to let the car go in the hope that it will let me keep the bike.
Yes my biggest concern is with my Employer. They have been so good to me and the last thing I want to do is to go BR on them also...
Thanks again for your thoughts... |
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dazed and confused
Junior Member
United Kingdom
475 Posts |
Posted - 26 November 2008 : 12:39:17
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| Going back to this, would the OR let a 3rd party pay the remaining I owe somehow to avoid me going BR on my Employer? |
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John
New Member
United Kingdom
73 Posts |
Posted - 26 November 2008 : 12:58:35
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Hi
as long as your employer has no objections I'm sure the OR would be ok with the idea.
www.Bankruptcyhelp.org.uk
0800 078 9367 |
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dazed and confused
Junior Member
United Kingdom
475 Posts |
Posted - 26 November 2008 : 13:03:35
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Hi John!
Thanks for your reply!
What I thought is that if I continue to pay it out of my wages as it is a Salary Sacrifice, and then a 3rd Party 'compensates' the OR for whatever I pay.
I think this may be the only option I have... |
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Needafriend
Junior Member
United Kingdom
344 Posts |
Posted - 26 November 2008 : 13:05:11
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Good luck D&C i do hope that this one gets sorted out for you, fingers crossed and all that :-)
Jo
x
For more info on how i have come through bankruptcy and for links to help, you can read my blog here called:
Needafriend's Info on Bankruptcy :-)
http://debtfreejo.blogs.bankruptcyhelp.org.uk/
Needafriend says: Live life to the full, take life by the horns and live a little, otherwise life would be so boring!
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Secured Creditors...
