Starting My Bankruptcy

Starry_Night

Hi everyone.

Well had my telephone interview with CCCS, who have advised BR. So have cancelled direct debits for my debts, hope this is right.

Bit confused about my car, apparently it is not on HP, but is a finance loan through the company who obviously still own the car until it is paid for. Is it ok to cancel the payment for this straight away, and what should I tell them if they phone (when they phone!!). Also where on the forms do I list the car, as its not mine, but its also not on HP!

This will be only the beginning of many questions I have to ask if thats ok.

Thanks for everything.

SN.

skylight

If the car is secured against the loan, then its generally refered to as HP (only cos there are enough letters masquerading as words here!). Its not your asset, but you list it on the forms in debts and use of a car. (I think!)

Check the contract for the loan. If it has a BR clause in it (some proper HP contracts do and they take the car) then you need to know what it is. Afterall, they may allow you to keep the car if you continue payments, then its up to the OR to decide if they will allow that amount in your SOA. Do you want to keep it??

Starry_Night

Thanks for the quick reply. To be honest I am not too bothered about the car, its £181.00 per month that I could do without, but I really do need a car of some sort. I have cancelled the direct debit for this, and my other debts, is this ok or should I keep paying them until I go BR?

Thanks again.

skylight

Why pay them? Its a waste of money if everything is going into the BR pot. Besides, put the cash to one side (like a trusted friends/family account via cash) to purchase a cheaper car after BR and once your HP car has gone. Plus you need to save for the fees. Are you moving into rented accommodation? Then you need to save for that too, so saving the money is not a problem. Just don't bother paying it to debts - you may as well burn it.

Starry_Night

Thanks very much Skylight. We are already in rented so thats one good thing. One more quick question for tonight, what shall I tell the car company when they ring and ask why I havent paid this months money which is due on 29th?

Thankyou.:eek:

skylight

All your creditors are going to call. Just tell them you are having difficulty and are discussing your position with CCCS so please be patient. Not that they will! If its going to be a sort while before BR then its not a problem, but several months may get a bit more difficult in the volume of calls.

Are you both going BR????? If not, then any joint debt will fall to the other. (If there is any)

patsypat911

My car is not HP but is registered on the system as having a HPI, mine was with Black Horse and it is a personal loan and registered as this but like I said has HPI against it. Companies like this have their cake and eat it, however, mine is included in the BR and there is no clause re: BR, am hoping to keep the car as I will lose my job without one as I work so far away , approx 100 miles a day. If you can get a case together to prove it is essential for you to have a car then the OR cannot leave you worse off than you already are and can give you up to £2000 to find a suitable replacement.

Starry_Night

Thanks guys for the replies.

Skylight, no its just me going BR.

Patsy, I am not really bothered about keeping the car, as it costs £180.00 a month, so could do without that.

Thanks again, off to bed now to dream of winning the lottery.

Sleep well.

SN.