i am inquiring on behalf of a colegue.what would happen if you declared yourself bancrupt and you had something on credit/loan that you had sold but had'nt paid the loan back? My dear friend had every intention to repay but used the money to pay elsewhere.She has maintained the repayments to finance company, but is further in trouble.owing vat,inland rev,bank ect.
If your friend took out a loan he/she is able to use the money for whatever purpose they wish, and thus dispose of any item purchased in any way whatsoever. However, if they took out a hp agreement this is an entirely different matter. In law when you purchase something via HP you are in fact 'renting' the item and the monthly payment is 'rent' The FINAl payment will be for a slightly increased payment (£1 even) and it is this final payment which purchases the item - in other words an item on hp is not yours until the final payment has been made. As such you cannot give an item 'good title' and therefore cannot sell it!
So it all depends on how your friend initially purchased the item a loan / storeloan (no different to a personal loan) / or HP.
I have come across people who have bought a car on HP sold the car privately (a reputable dealer would always do a HP check)then not paid the HP company back, and then ceased payments. The hp company will take steps to recover the agreement if payments are defaulted on, and I have known them collect a vehicle from an innocent person who has bought a vehicle in good faith and paid good money only to have the vehicle disappear!!
Melanie Nicholas 28 years insolvency experience - 23 of which in the Insolvency Service - Insolvency Manager Jones Giles email me at melanienicholas@jonesgiles.co.uk
i am inquiring on behalf of a colegue.
Posted - 02 September 2009 : 13:32:35
