Cars on contract hire

custard_cream_3

I'll be going bankrupt in the near future, but haven't as yet been late with any payments. I have two cars in my name, one on personal lease purchase (balloon payment at the end if I want to keep it) and one on contract hire.

First question; if I wanted to get rid of both of them, can they be included in the bankruptcy?

Second question; if I wanted to keep one or both of them, can I do so providing I continue to meet the payments?

I do live in about as middle of nowhere as it's possible to live, and I need at least one car, but not necessarily these ones. However, it's probably the most cost effective solution right now, but I'd be grateful to know my options.

custard_cream_3

Sorry to bump this, but has anyone got any idea on this?

deedee_3

Sorry haven't the foggiest but until someone advises it might be worth having a read here


Cars and bankruptcy.

What will happen to my car? (MSE)

OR's Case Help manual - Motor Vehicles (March 2007)

custard_cream_3

Thanks Deedee

chelseabun_3

Hi custard cream,
If you check your lease purchase agreement it may say that they repossess the car if you go BR. My OH's car is on one of those and that's what they'll do when he goes BR. BUT I phoned anonymously and asked them if there was any way of me buying it for him if he goes BR. They said that in the current financial climate they will listen to any serious offers and would probably accept an offer that meant they would get more for the car than at auction (which is where they sell all repos) Obviously if you're going BR you can't buy the car, but is there anyone who could do that for you? That's one option, anyway (maybe!);)

I have no idea about contract hire! Sorry! Hope that helps a bit. ;)CBx

fiveyearplan

If you prove you need a car then it won't necessarily be taken in BR and the OR just may allow you to keep paying all depending on the price of the car etc. In bankruptcy cars are a grey area. As far as the lease purchase is concerned if you can continue to pay they would be silly to repossess as they wouldn't get their money back. I think that clause is put in for their protection and seriously don't think they would repo.

If you decide you don't want to keep either car, then yes, it would be included in your BR.

I had a car on HP and the OR said immediately he had no interest in it.

custard_cream_3

Thanks you two. What you say seems logical. One of the cars I'd be happy to let go because it's quite expensive each month and I don't care what I drive about in. The other one is a 4x4 and really is pretty essential where we live because we're about 5 miles from a well maintained, gritted road and snow is commonplace. Also, it's the one which is big enough to fit three child-seats across the back. My wife also needs it for her work so I'm hoping we can just transfer it to her name and let her make the payments, which actually wouldn't cost any more than going out and buying a replacement car for £2000.

Let's hope it's that logical!

december

I had a car on a lease hire agreement and although I think it depends on the OR there was no question of me being allowed to keep it. I was halfway through the agreement and £200 per month just to keep the agreement was quite a lot really. I now have a little run around which my mom lent me the money for as the one I bought at auction with the money I had saved from not paying the HP had a leaky sunroof and other problems. Although at the time I was gutted that my car had to go, I'm glad now.

December

custard_cream_3

Well, I've been looking at it this morning.

Assuming the finance company allowed my wife to put the agreement into her name and we kept the car, we'd have 18 payments of £295 to make plus a balloon payment at the end of £6400 to keep the car - a total of £11700. Alternatively, my wife could take a car loan out prior to my bankruptcy, buy a smiliar car for about £6500, which over 2 years would be the same monthly payment as we already make, yet we then own the car outright.

I'd be mad not to wouldn't I?

marklunn3602

Hi guys
If you have a car on HP is it possible to ring them up and tell them to come and take the car back?

chelseabun_3

Hi Mark,
yes you can, and they charge you their expenses for doing so, but it gets rolled up into the BR if you do it just before BR. CBx