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Can A Hire Agreement Make You Bankrupt?
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Posts: 37 Forumite
I currently have personal debts of £11,000 (personal loan and overdraft) due to setting up a business. Which while annoying are manageable and more importantly able to be repaid.
The problem is that the business has since collapsed leaving an additional debt of £15,000. £5,000 of this is a business overdraft that I have not guaranteed. I therefore assume that this will be written off. Am I right?
The remaining £10,000 is for two lease agreements one £7,000 and the other for £3,000. For these leases I signed a personal guarantee for both. Now the business has collapsed I am left with a debt of £21,000 and considering bankruptcy.
However one of the leases states that it is a hire agreement regulated under the consumer credit act 1974. As this lease has had more that 50% of it repaid can it simply send the equipment back (worth only £500) and the lease will be cancelled? Or am I forced into the bankruptcy route?
I have no assets, the property I live in is owned by my partner with a Trust Deed showing who owns the beneficial interest.
Any advice will be greatly appreciated.
The problem is that the business has since collapsed leaving an additional debt of £15,000. £5,000 of this is a business overdraft that I have not guaranteed. I therefore assume that this will be written off. Am I right?
The remaining £10,000 is for two lease agreements one £7,000 and the other for £3,000. For these leases I signed a personal guarantee for both. Now the business has collapsed I am left with a debt of £21,000 and considering bankruptcy.
However one of the leases states that it is a hire agreement regulated under the consumer credit act 1974. As this lease has had more that 50% of it repaid can it simply send the equipment back (worth only £500) and the lease will be cancelled? Or am I forced into the bankruptcy route?
I have no assets, the property I live in is owned by my partner with a Trust Deed showing who owns the beneficial interest.
Any advice will be greatly appreciated.
Total Debts Jan 09 - £28,000 Jan 10 - £11,500
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Comments
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The information on the factsheet below should help you to work out what (if anything) will still be owed.
How to deal with hire purchase debtFree/impartial debt advice: National Debtline | StepChange Debt Charity | Find your local CAB
IVA & fee charging DMP companies: Profits from misery, motivated ONLY by greed0 -
I have tried to do this but the company says it is a hire lease agreement and not a hire purchase agreement. The document that was signed just says hire agreement regulated under the consumer credit act 1974. Are they right to still demand the full amount?
Total Debts Jan 09 - £28,000 Jan 10 - £11,5000 -
The information on the factsheet below should help you to work out what (if anything) will still be owed.
How to deal with hire purchase debt
Great link Fermi! I have three lease hire deals for catering equipment all with more than a third paid. Does this mean I can terminate all of these and then only legally be liable for 50%? Also would the same apply to advertising? Ie I have one with BT and one with Yellow pages. They both have about 6 payments to go, can I terminate these too?
Thanks:rolleyes:
Heres to a brand new start!!;)
Court date March 6th!:j 1 week after BR and feeling pretty good!:j0
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