hi my question is i have a car on finance and i owe 8000 pounds but if they take the car off me i wont have a car for my bussiness , does anyone know what will happen here would they let me keep making the payments?
Normally you are only allowed a car valued at £2k or less when you declare BR. If a car is valued higher than this then you would need to put a case forward as to why you needed a higher value car i.e. needs to be reliable cos you travel 1000 miles per week or something similar.
You would also need to think what would happen in the future if you were unable to meet the finance repayments having already declared bankruptcy.
I have just looked at your previous posts and it isn;t clear what type of business you are running, does it have any leases, stock etc that the OR will be interested in.
The OR is becoming a little bit more realistic in their approach to HP in that they will allow a hp agreement to continue if income/job would not be possible without the vehicle. However, it is a risk you would have to be prepared to take. Each OR operates in a slightly different way with its day to day interpretation of the Insolvency Act. I have a number of clients who have been able to continue with their hp or else they would not be able to continue in work, I have also had clients keep vehicles of £8,000 because a decent vehicle was required for their type os work. It is all down to your individual OR and the strength of the arguement you put forward to keep the vehicle. Your income would have to be sufficient to satisfy the payments under the hp agreement
Melanie Nicholas 28 years insolvency experience - 23 of which in the Insolvency Service - Insolvency Manager Jones Giles email me at melanienicholas@jonesgiles.co.uk
financed car
Posted - 24 August 2009 : 10:56:29
