Not good news

[Trickles]

Thank you Ian. My brain has gone to mash today. We will sit down later today and have a real good chat on what we are going to do next. To be perfectly honest, if it was a choice of keeping the caravan or living in the house, at this moment in time I think I'd rather be living in the caravan.

[ianmillington]

The main thing is don't panic, on the basis that this is your first meeting you've got 2 weeks to get your head round this and with a bit of luck maybe thrash out a deal. The main thing is you seem to have got an acceptance "subject to..."

Ian

[Trickles]

Thanks for your help Ian. I will keep you posted.

[angela18]

any progress trickles

[MelanieGiles]

You will struggle to get B&B in the London/Guildford area for £15 - try £50 and that might be more likely. My pennorth, for what it is worth, is that sufficient emphasis on the need to retain this asset has not been put into the IVA proposal. Why not think about offering an additional year's contributions if HSBC and HBOS fail to allow the expenditure.

[Trickles]

We spoke to our IP last night and the creditors had still not made a decision. He was going to contact them again this morning and let us know if they were any further forward. Our IP has explained the situation with the creditors about the caravan and why we would need to keep it. And your right Melanie, the cost of B&B is more likely to be around the £50 mark. Because of the hours hubby works; he's at work for 3pm and doesn't get back until 3, 4 or sometime 5am the next morning, so where and who is going to want to offer B&B at these times. The only B&B he would probably be able to get is a Travel/Premier lodge who charge around £45 per night. Hubby has just rung: the creditors are still asking questions, at least they are talking. They have excepted the site fees, but want to know why we need a caravan that is still on HP. Our problem is, if we sell the caravan we would probably just get enough to clear the finance company, but then where would we be able to get the money from to buy another one? I think it's going to be another long day.

[ianmillington]

The £50 makes it significantly different of course. There is now a business case, as it now shows you to be saving money. As you have identified, the fact that the creditors are talking means the door is not closed.

Have you fed that information to your IP?

ian

[kallis3]

Trickles, I am so sorry for your problems! I know your creditors have to be paid but you are making an effort and you would think that they would be able to look at the big picture.

Fingers crossed that everything works out ok for you.

[Trickles]

Hubby has been on the phone to him this morning and our IP has got as much information as we can possibly give him. He has said that all is not lost and the fact that the creditors are still talking is a bonus; they haven't totally dismissed us. I realise they want a lot of answers to questions and we will continue giving as much information as possible that is required. When I spoke to our IP last night, I did mention that we would be prepared to extend our IP if this would make any difference. Ian I don't know if you can answer this question for me. If we were to go bankrupt, what happens to items that you have on HP? as these don't officially belong to you until the last payment.

[Trickles]

Thank you Kallis for your kind words. I think I've got everything crossed at the moment. But was naughty last night, purchased a bottle of red wine and drank the lot. I was so desperate for some sleep. It did the trick!

[kallis3]

Hope you didn't have a hangover this morning! You need to keep a clear head! Don't blame you though, I think I would have done the same.

[Trickles]

No I didn't, thankfully.

[ianmillington]

Hi again

To answer your question, the Bankruptcy Order would be an event that would, most likely, terminate the HP agreement or allow the finance company to do so. That could, to be fair, also be the case in an IVA, depending upon the terms of the HP agreement.

So long as you are not in default and keep making the payments, in an IVA the finance company may well allow you to retain the asset, especially if repossession would trigger a shortfall. Repossession is somewhat more likely in a bankruptcy.

A couple of points emerge in a bankruptcy. Firstly the question of whether or not you will be allowed to make the payments (in calculating whether there should be an income payments order) will be for the OR to decide. Unless the asset is essential permission is unlikely to be forthcoming. Secondly, if there is equity in the asset, that will form part of the bankruptcy estate and cannot be classified as an exempt asset. As a consequence, the Finance Company will be accepting payments from someone who may no longer have any interest in the agreement.

To summarise, the situation becomes rather more complex in a Bankruptcy, with a significantly higher risk of the asset being taken back.

Ian

[Trickles]

Thank you Ian this information is very useful.

[louisa.s]

I don't know if it has been suggested or even an option but can you get hold of a second hand caravan cheaply and then ditch the the one with the HP particularly if your creditors have accepted the site fees!

Hope you manage to get it resolved!