Sorry another question. We have recently bought a car for £8000 on HP. If we went BR would we lose this car, even if we could still afford to keep up with the payments. Also we are in negative equity with our house, would we lose the house or be able to keep it?
In answer to your questions: (think I am right on this)
1.) Because of the high value of the car I would think you would probably lose it and have to get one of a more modest value
2.) If you keep up the repayments on the mortgage you should be fine. The only thing you will need to do is to pay for the beneficial interest, or get a friend/family member to do it on your behalf
I just need to step in on the points raised in this post.
Firstly, it is no longer a statutory requirement to advertise bankrupcy orders in the local press. This is now left to the discretion of the Trustee, but the advertisement is still made in the London Gazette.
Secondly, it is likely that you would be allowed to retain your car, with the agreement of the hire purchase company and your Trustee.
Hi - in addition to Rays excellent advice. With the car it depends why you need the car and if its only you going BR. My hubby was allowed to keep his lease car, but if the payments had been to high I would have made up the shortfall. The official receiver will go through all this with you.
As for the property - Ray is spot on - if its in negative equity, a 3rd party will be able to purchase the beneficial interest. This is a simple procedure and again the official receiver will advise you.
I'm worried about losing my partners car as he does a 50 mile a day round trip to work so we really need to have a reliable car. I'm sorry but I don't understand what you mean by beneficial interest. this is all new to me. Also who would the trustee be. Sorry for being a bit thick when it comes to all this!!!
If the vehicle is the main concern you should speak to the hire purchase company as bankruptcy is a default. However, they will normally allow the vehicle to be retained provided there are no arrears. There would be an issue if the agreement is unsecured so you should check the paperwork. If so the vehicle will almost certainly have to be sold and a cheaper replacement bought.
Hi - you're not being thick....it was all new to me not so long ago [:)]
I understand where you're coming from as my hubby drives over 20 thousand miles a year and we need a reliable car. How much are your monthly repayments on the car?
The beneficial interest is really the persons interest in the property.When someone goes BR, this is transferred to the official receiver. If its just your hubby who is going BR then you could buy this off the official receiver. If its both of you going BR then you could ask a relative, friend etc to purchase this. You would still be responsible for the mortgage repayments.
If the vehicle has to be sold you will be allowed enough to buy a cheaper one and the remainder is handed over to the OR. If your DI is £150 after paying for the vehicle you could do a DMP, IVA or petition. It seems a lot depends on what would happen to your vehicle which is difficult to guess without sight of the loan agreement.
