Please can you let me know if car would be taken

[katie]

I am wanting to go bankrupt as we are seriously struggling with out debts, the only problem we have is that we have 1 more year left on out car through Hire Purchase. THe car is valued at around £2500. If i went bankrupt would my car be taken off me? My husband and I work in different areas and it would be difficult to get to work and take the children to nursery everyday without it. Please can you let me know if my car would be taken? Thanks

[abc]

Generally vehicles worth between £2-3,000 are exempt in Bankruptcy, but you will still be required to pay the HP otherwise the HP company may have the right to repossess the vehicle - you will need to check the repossession rights in your HP contract.

Have you considered all your options other than bankruptcy? Have you spoken to an IP?

[carlmcmullen]

The OR in bankruptcy would not touch the car given the value and the fact it is on HP however your HP company may do.

Some companys will not allow you to continue with the agreement and will terminate once they are notified and look to reposses. Blackhorse are known for doing this with Hire Purchase agreements.

Some other lenders will allow you to continue with the agreement providng you do not miss any payments.

Perhaps contact your Hire Purchase provider and discuss the situation hypothetically speaking on a no name basis - this should give you an indication on how the company operates.

[MelanieGiles]

Often, there are bankruptcy termination clauses written into hire-purchase agreements, so you would be wise to check the small print to see whether this would affect you or not. How much are your car hire-purchase repayments each month?