Help. Advice needed re: Cars

In_Deep_2

My husband and I are about to go bankrupt and need some advice about cars. My husband has a car on HP and has been offered a job to start in January so I assume the OR will let him keep his because there are no transport links where we live and he will have to use it for work approx 60 miles a day each way. The car has 14k outstanding and is probably worth that.

We also have a second car on finance finance about 17k car value about 15k brand new have only made one payment on it.

The finance is in my husbands name but the car is essentially mine. What circumstances will allow us to keep this car too.

I live in a small village with no transport links I will be looking for a job in the new year because we cannot live on hubbies salary alone. My son does not go to school in our village and will need to travel by car. I also have a son who lives about 6 miles away although he lives independently he has special needs and mental health issues I am his only carer. Do you think this is sufficient to let us keep the second car and if not how then do I purchase another car? After the bankruptcy I will not get credit for another car?

deedee_3

The car that is on HP the OR will not be able to take as it is on HP and is not an asset. He may say that the repayments will have to come out surplus but usually if they are resonable then he will allow them on the SOA.

You will loose the second car I am afraid especially one of such high value. Is there any way you could get the money together to buy a run around for a few hundred pound before bankruptcy as you may be allowed to keep it, especially if you can prove it would cost more to use public transport etc.

In_Deep_2

Both cars are on HP and no I do not have the money to buy another car. A few hundred pound run around is not an option.

maxmycardagain

InDeep, how are you going to keep up payments on a £17K car AND a £14K ...AND the villa abroad and (presumably) on your UK home?

maxmycardagain

In_Deep wrote: »

Both cars are on HP and no I do not have the money to buy another car. A few hundred pound run around is not an option.

speak to the dealer who sold you the car/cars and explain you could very much use a deal of a cheaper car and the finance cleared, that would save you an awful lot of HP repayments

In_Deep_2

maxmycardagain wrote: »

InDeep, how are you going to keep up payments on a £17K car AND a £14K ...AND the villa abroad and (presumably) on your UK home?

I am not. The villa is going to have go into the "pot" my UK home is going up for sale but will be repossessed ultimately. I had hoped that we would be able to keep the cars Hubbies new job is a good job with a substantial income but he will be working long days.

In_Deep_2

maxmycardagain wrote: »

speak to the dealer who sold you the car/cars and explain you could very much use a deal of a cheaper car and the finance cleared, that would save you an awful lot of HP repayments

It won't clear the finance the car is new so is valued at less than the finance at the moment. It lost 2k when I drove it off the forecourt.

skylight

Have you actually checked the HP contract?? Its not up to the OR whether you get to keep the car, its initially down to the HP company as many have clauses in them that they are able to take the car at any point. Before anything else, you need to talk to the HP company about it and *if* they allow you to keep the car, get it in writing from them.

Then, if you are allowed to keep the car and continue the payments, then its the ORs turn to decide if your payments can be included in your SOA. If they do not allow the entire amount (or any) then it will have to come out of your surplus income. If you cannot afford it out of your surplus, then the car will have to go back to the HP company and ensure any shortfall is included in your BR.

If you do not work, then at stage 2 of the above process on the second car - the OR is going to flatly state no-way on your SOA. Being a carer is an argument but is not an automatic exemption. You are allowed to buy another car after BR, and you can buy small, cheap to run and reliable cars for £1k or so. Either save up or ask a friend/relative for the money as you rightly pointed out, you are not going to get credit for one (and potentially start the debt cycle all over again).

And if a few hundred pounds run around is your only option, then so be it. Bankruptcy is not about sustaining a lifestyle you obviously can no longer afford (for whatever reason).

In_Deep_2

skylight wrote: »

Bankruptcy is not about sustaining a lifestyle you obviously can no longer afford (for whatever reason).

I understand that and thank you but I don't need it rubbed in my face. I need a car how do I get my son to school 3 miles away. He is in primary so no buses, only bus in our village leaves at 9.30pm and returns at 3pm no trains nearest train station 6 miles away. How do I look for a job with no car. If the buses are cancelled which they often are when there is bad weather how do I get back to collect my son from school (which I can't do anyway because the bus route is not near his school anyway).

I am not trying to sustain my lifestyle but just trying to get a practical answer. I won't bother asking again.

In_Deep_2

Pls remember Debt-Free Wannabee's for support and help not judgement

maxmycardagain

The OR isnt stupid, online shopping, education transport services, etc are all options to rural dwellers, a cheap car is the best many would aspire to, given a new one on HP requires fully comp insurance (x2 in your case)

the payments on the two cars (just bought?) must be £500 and wont be allowed on your SOA so if they add to any surplus will add £350 to your IVO...

why not post a SOA for a realistic response?