Husband and his HP

neverindebtagain

My husband booked his date in court yesterday, Friday 13th Feb. My examiner advised he seek advice, he did, they told him to go br.

My question is he has a van for work on finance, 3 years left on it, and he has a caravan on finance, 4.5 years left on it. Both taken out when he could afford repayments on priority and non priority bills, now struggling for work.
Where on the forms does he put HP, as they are not legally his and therefore not an asset.

Also our son works with him and he travels in the van to work, even though the finance is in my husbands name is it acceptable for the payments to go out of my sons account until wages increase or become more stable, he is offering to take over the payments as long as my husband puts the fuel in and pay for insurance etc. Without the van neither of them can get to work, so will he be allowed to keep it.

peachyprice

Good morning Nida,

I'm not sure where vehicles on HP go on the forms, sorry.
As he uses the van for work the OR should allow him to keep making payments towards it, but has he checked the paperwork to make sure there isn't a bankruptcy clause?

As for the motorhome, even though it's not an asset I don't think the OR will let him keep making payments towards it, the OR can adopt the HP agreement, sell the camper, an either pay off the finance or include any shortfall in your BR.

HTH

Addicted2Chocolate

put the caravan and van in section 3 where it asks about motor vehicles. The table where it asks you to give full vehicle details (make model reg, tax insurane location etc) also asks is it on finance, name of finance co and agreement number.

neverindebtagain

Thanks for your replies, it is a caravan that you tow. There is a possibility he may need it to work away, brickie, would the OR consider that as it would save on accommodation.

Addicted2Chocolate

no, afraid not. As it is on finance, it is not an asset in the bankruptcy, therefore cannot be claimed as exempt. Only motor vehicles owned outright may be claimed as exempt.

neverindebtagain wrote: »

Thanks for your replies, it is a caravan that you tow. There is a possibility he may need it to work away, brickie, would the OR consider that as it would save on accommodation.

neverindebtagain

I am a bit confused, probably because I am going insane with stress and worry.

The van is on finance, it is the vehicle he uses to drive to work, I undderstand he puts that on the sheet, is the OR interested in it, the settlement figure is about 4500 and the van is worh about 3500. What will he probably do.

The caravan is also on finance, similar figures as above, as it is not a motor vehicle where does that go on the form and do we stop paying for it then and let them repossess if he says we cant have it, probably on the grounds it is unneccessary. The payments are up to date, and according to things we have read, neither of them belong to him as they are on finance, so therefore does the OR have a say

Addicted2Chocolate

Van: as settlement figure exceeds the value, the OR would have no interest in the agreement. It wil be up to the finance co to decide wheterh to repossess or allow the agreement to continue.
Caravan: as above, OR will not have an interest in the agreement. Out it under the vehicles section, or on the extra info section 13. mention it at interview too to ensure OR is aware. I would guess payments to caravan will not be considered as essential for any IPA calculation. Unless they are less than £60-£80 pcm and you could argue that is your monthly holiday allowance. Still OR will notify finance co, it wil be up to them to decide whether to allow agreement to continue.

peachyprice

From the IS website:

vi How do hire purchase and conditional sale agreements work?
The official receiver as trustee/liquidator usually has the right to adopt the agreement but will only do so where the value of the goods exceeds the amount of the remaining payments. Where this is the case, the official receiver may realise the equity in the goods after gaining the agreement of the finance company to the goods being sold and the outstanding debt being paid from the sale proceeds.

Hope that helps some