BR and HP Car

[coco]

Hi,

If i decided to go BR would i still be able to keep my car i have approx 2 years left on the payments or £4000 i would still keep the payments up if i were to be made BR, without the car i would be unable to work.

51 payments to go
(I apologise for my keyboards poor spelling and grammar)
http://coco.blogs.iva.co.uk

[Storm]

Your HP contract would terminate and the vehicle returned for sale at auction. Any shortfall would be added to your BR.

[MelanieGiles]

So long as the HP company agree that you can keep the car, then you may be allowed to keep it in bankruptcy proceedings, so long as it is an essential item ie used for travelling to work or taking children to school. It must also be a fairly modest vehicles and the payments of a reasonable level.



Regards, Melanie Giles, Insolvency Practitioner for over 20 years.
View my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[Storm]

It is very unusual for a HP lender to let you keep the vehicle unless you have only a couple of payments left to make.

[MelanieGiles]

I must just have a good bunch of lenders in my bankruptcy portfolio then, as I have seen this quite often!

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.
View my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[Storm]

I can guarantee the HP lenders I have worked for over the past 20 years would terminate the agreement, recover the vehicle and persue shortfall recovery.

[coco]

Hi my car is a berlingo, and the payments are 198 pm, if i was to go bankcrupt i would be able to contiune the payments however if i could not keep the car i would not be able to work as my employment is 20 miles away and not on a bus route, so it is a catch 22 as i wont be able to even afford a cheap car,

51 payments to go
(I apologise for my keyboards poor spelling and grammar)
http://coco.blogs.iva.co.uk

[Storm]

Who is the Finance Company ??

[freelili]

Hi Coco

I think it depends on the finance company you are with. I was told that almost always if HP you would have to return the car (unless its almost paid for) they allow you something for a modest alternative. My car was a finance agreement and they said I would be able to keep it. The OR does look at individual cirmstances also regarding getting to work.

Sorry that you are thinking about takin this route, but I wish you all the luck in the world.

LILY

[coco]

Hi Storm,

the finance is Citreon, we paid 3000 deposit and already paid a year finance so the split would be 60/50 in our favour.



51 payments to go
(I apologise for my keyboards poor spelling and grammar)
http://coco.blogs.iva.co.uk

[Storm]

Do you know its aprox value ? If your not sure have a look on autotrader - http://www.autotrader.co.uk/CARS/buying ... ur_car.jsp

Just checking it is not an Elect 3 agreement ?

[coco]

Hi storm

the vuluation is approx 6000,

Thanks

51 payments to go
(I apologise for my keyboards poor spelling and grammar)
http://coco.blogs.iva.co.uk

[Storm]

Citroen Finance is operated by the the manufacturer (this is not the norm) and they are receptive to proposals.

The write off amount would be minimal.

The only thing to remember is that once the vehicle becomes your property after the final payment the OR may see it as an asset that needs to be realised.

Melanie may be able to give a view on this.

[coco]

Hi Storm,

I sorry for being thick but i dont understand your last answer.

Thanks

51 payments to go
(I apologise for my keyboards poor spelling and grammar)
http://coco.blogs.iva.co.uk

[MelanieGiles]

Perhaps I can help.

What Storm is saying is that even if you manage to do a deal with the finance company, then the car may well be viewed as an "After Acquired Asset" under the bankruptcy and therefore grabbed. He is correct, depending upon the vehicle value - anything below £3,500 is generally OK, so yours at £6,000 is risky - unless you get a third party to pay off the finance for you and then claim to be a part owner. This would be acceptable.

I do not see, however, how you can afford to pay off the HP balance. My advice is negotiate that you continue to make the HP payments with Citroen, then tell your Trustee that you have agreed a deal. If I were to be your Trustee, I would accept that on the basis that your car is essential to get to and from work.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.
View my IVA blog at: http://melaniegiles.blogs.iva.co.uk