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brianth
Starting Member
3 Posts |
 Posted - 03 March 2009 : 15:09:11
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| hi, i am considering bankruptcy, i have a car worth 4,500, with 3,500 still on finance, will i be able to keep the car & pay the finance or will i have to hand it back? many thanks |
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Melanie.n
forum expert
United Kingdom
1282 Posts |
Posted - 03 March 2009 : 15:50:37
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First off check whether or not the finance on the car was a motorloan/loan or HP many people come to me stating the have hp when in fact it is a loan your agreement or a quick call to the finance company will confirm which it is. If it is a loan of any description it is no different to any other loan or credit card debt and payments would cease on bankruptcy and the car is yours, however the OR may make the decision tht the car is above the acceptable value and you would then have 2 choiced one have the OR sell the car or have a 3rd party pay the difference to the OR and be able to keep it. (check out Parkers online for an up to date valuation) If the finance turns out to tbe HP, the agreement would be void on the making of the BO and as such the HP company would take steps to collect the vehicle unless you could proove you needed the vehicle to enable you to travel to and from work ie was essential i have known OR's allow HP's to continue in such a case, but more often than not the car is taken back by the HP company. An alternative is prior to declaring bankruptcy get the hp agreement transfered into a relatives name thus enabling you to continue to use the agrement , but the relative would be responsible for the monthly payments following the transfer not you
Melanie Nicholas
28 years insolvency experience - 23 of which in the Insolvency Service
- Insolvency Manager
Jones Giles
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OH WOE I OWE
Starting Member
3 Posts |
Posted - 03 March 2009 : 16:53:08
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| Melanie, many thanks for your prompt reply, does the HP company have to approve the transfer to a third party? |
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hi, i am considering bankruptcy
