Hi all i have 26k of debt with 5 creditors and have been making reduced payments for a few months now i started a dmp with CCCS however 2 of my creditors have refused to acept this reduced payment of 160. Iam now finding it difficult to meet these payments.
I live with a house share so have no assets except my car. here comes the complicated bit. I started experiencing financial problems after leaving my ex partner last year. I am the registered keeper of a car worth 1300 however i do not use this car as it is not reliable and uses lots of fuel my borther in law uses it. my brother in law got finance for me on a newer car in his name with me a guarentoor so his name is on the log book not mine but i pay the finance £245 The car was 8k got a year ago over 6 years the final cost after the finance costs is 16k the car is now worth about 5k 07 renault megan.
Where would i stand with accounting the costs for the car finance and keeping the car that is registered to me. I can prove that the payments have come out of my account for the past year and is up to date? Other than the car thaqt i need to travel between 3 hospitals for work i have no assets. I am also hoping to start university next year to provide a more stable future for myself. All help appreciated. Thanks Karen
When it comes to vehicles is the is owner of the vehicle that is the important thing and the owner is normally the person who bought the car even if this isn't the person who is listed as the registered keeper of the car.
With your £1300 car if you bought the car and are the registered owner then the OR would have to decide whether you needed this car regardless of whether your brother in law uses it or not. If they decided you didn't need it then they would take it and use the sale to pay to your creditors. If you needed it for work then you should be able to keep it as the value isn't too high.
The other car is a bit more difficult. This would be counted as your brother in laws car as the finance is in his name, even though you are a guarantor, and his name is on the log book. I am not sure whether the OR would allow you to pay the £245 for the finance as one of your expenses as they would expect your brother in law to pay this. You cold pay this amount from any disposable income you have after your food, utility bills, etc. as well as any IPA you would pay but whether the OR would allow this as an expense or not is not certain.
contemplating BK
Posted - 17 August 2009 : 21:14:40
