Car

larzie30

okay so my car is bought on options, and in the agreement it has a clause that if I go br they will take it off me. So I understand that I probably will lose the car. However without it I can't get to work. I also understand that the OR can allow you an amount to purchase another more reasonable vehicle. My question is this, is there likely to be a period of time that I am without a car, or will they allow me a reasonable time to find a replacement before they take mine off me?

Any advice appreciated.

Cheers

L

philnicandamy

larzie30 wrote: »

okay so my car is bought on options, and in the agreement it has a clause that if I go br they will take it off me. So I understand that I probably will lose the car. However without it I can't get to work. I also understand that the OR can allow you an amount to purchase another more reasonable vehicle thats wrong...the OR will only allow cash towards a replacement vehicle they seize & can sell on that you own outright & is worth over £2000...because of the lease you have the OR has no interest in the car as the vehicle belongs to the lease firm...therefore they'll not allow any cash for a replacement. My question is this, is there likely to be a period of time that I am without a car, or will they allow me a reasonable time to find a replacement before they take mine off me?

Any advice appreciated.

Cheers



L

Just a thought...

fiveyearplan

Just because there is a BR clause doesn't mean they will take your car. Can you explain a bit more of the finance you have - how much is left owed on the car, how much have you paid and how much do you think the car is worth? It could be in the finance company's best interest for you to keep the car but its hard to say without more details.

larzie30

Thanks for your replies

Oh no I got it wrong again.

Well it was on the options, where next april I can either give them the car back or pay them the final installment of just under 2k to keep the car. My mum and dad are willing to get a loan to allow me to keep the car, but i am then worried that it will become a realisable asset that the or will take from me. Any further advice

fiveyearplan

When you go BR the OR will tell you he has no interest in the car because it still belongs to the finance company. What you do after that date is your business and the OR will not take it. You could even be discharged by next April. Do you pay a monthly payment to them now? If so how much?

larzie30

yes I pay 177 per month. is the or likely to let me keep this as a priority payment if the finance company would let me keep it on? THis is the real cause for concern because I can't get to work with out it

fiveyearplan

You will need to plead your case for keeping the payments on your SOA. Why don't you post up your soa for comments?

http://www.makesenseofcards.com/soacalc.html

AnniShep

I shall be interested to see the replies to your question. I am in a similiar situation just about to go BR in Sept 09, my car is on a secured loan with Santander, payments up to date, if as said above the OR has no interest in a secured loan on a car as it belongs to the finance company, Im worried as I owe £9k and the car is worth at best £4.5k I think I should cut my losses here, but need a car for work as no car equates to no work hence no money.
Would any outstanding finance owed go into a Bankruptcy then ?and I think if I stop paying the car and put the £273 monthly payment aside I could afford an old reliable banger in a couple of months if I delayed my BR till around Nov 09, how quickly do they reposess cars these days?

larzie30

Thanks for helping me FYP here is my soa

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 3
Number of children in household......... 0
Number of cars owned.................... 2
Monthly Income Details
Monthly income after tax................ 1400
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1400
Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 415 this would only be 177 for the car as the rest is for a joint loan which will go into br
Rent.................................... 300
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 0
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 40
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 200
Clothing................................ 30
Petrol/diesel........................... 220 (60 mile round trip to work)
Road tax................................ 12
Car Insurance........................... 30
Car maintenance (including MOT)......... 20
Car parking............................. 0
Other travel............................ 60
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 22
Pet insurance/vet bills................. 32
Buildings insurance..................... 20
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 20 I know this won't be allowed
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1471

Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 0

Secured & HP Debts
Description....................Debt......Monthly.. .APR
Mortgage...................... 0........(0)........0
Secured Debt.................. 44000....(250)......0
Hire Purchase (HP) debt ...... 4500.....(165)......0
Total secured & HP debts...... 48500.....-.........-
Unsecured Debts
Description....................Debt......Monthly.. .APR
natwest mastercard.............1800......30........0
Monument visa..................1500......50........0
Capital one visa...............500.......25........0
Phone bill ....................172.......0.........0
overdraft 2....................900.......0.........0
overdraft 1....................900.......0.........0
Credit union ..................15000.....250.......0
next...........................650.......55....... .0
Solicitor......................4000......150...... .0
Total unsecured debts..........25422.....560.......-

Monthly Budget Summary
Total monthly income.................... 1,400
Expenses (including HP & secured debts). 1,471
Available for debt repayments........... -71
Monthly UNsecured debt repayments....... 560
Amount short for making debt repayments. -631
Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -48,500
Total Unsecured debt.................... -25,422
Net Assets.............................. -69,422

fiveyearplan

larzie30 wrote: »

Thanks for helping me FYP here is my soa

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 3
Number of children in household......... 0
Number of cars owned.................... 2
Monthly Income Details
Monthly income after tax................ 1400
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1400
Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 415 this would only be 177 for the car as the rest is for a joint loan which will go into br
Rent.................................... 300
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 0 Don't you pay any utilities?
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 40
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 200
Clothing................................ 30
Petrol/diesel........................... 220 (60 mile round trip to work)
Road tax................................ 12
Car Insurance........................... 30
Car maintenance (including MOT)......... 20
Car parking............................. 0
Other travel............................ 60 what is this?
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 22
Pet insurance/vet bills................. 32 this may be a bit high - think £25 but leave as it is but be prepared if it is lowered.
Buildings insurance..................... 20 if you rent why do you have building insurance, change this to contents.
Contents insurance...................... 0 20 and delete buildings above
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 20 I know this won't be allowed put this in holiday fund
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1471

Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 0

Secured & HP Debts
Description....................Debt......Monthly.. .APR
Mortgage...................... 0........(0)........0
Secured Debt.................. 44000....(250)......0
Hire Purchase (HP) debt ...... 4500.....(165)......0
Total secured & HP debts...... 48500.....-.........-
Unsecured Debts
Description....................Debt......Monthly.. .APR
natwest mastercard.............1800......30........0
Monument visa..................1500......50........0
Capital one visa...............500.......25........0
Phone bill ....................172.......0.........0
overdraft 2....................900.......0.........0
overdraft 1....................900.......0.........0
Credit union ..................15000.....250.......0
next...........................650.......55....... .0
Solicitor......................4000......150...... .0
Total unsecured debts..........25422.....560.......-

Monthly Budget Summary
Total monthly income.................... 1,400
Expenses (including HP & secured debts). 1,471
Available for debt repayments........... -71
Monthly UNsecured debt repayments....... 560
Amount short for making debt repayments. -631
Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -48,500
Total Unsecured debt.................... -25,422
Net Assets.............................. -69,422

That is a good start and I've only had a couple of comments to make - anyone else offer any other comments?

fiveyearplan

AnniShep wrote: »

I shall be interested to see the replies to your question. I am in a similiar situation just about to go BR in Sept 09, my car is on a secured loan with Santander, payments up to date, if as said above the OR has no interest in a secured loan on a car as it belongs to the finance company, Im worried as I owe £9k and the car is worth at best £4.5k I think I should cut my losses here, but need a car for work as no car equates to no work hence no money.
Would any outstanding finance owed go into a Bankruptcy then ? YES and I think if I stop paying the car and put the £273 monthly payment aside I could afford an old reliable banger in a couple of months if I delayed my BR till around Nov 09, how quickly do they reposess cars these days? it took 11 months for mine to be repo'd

Hi annie and welcome! You should really start your own thread so you don't 'get lost' in this one. You could stop paying your car payment as you suggest above to save for a reliable car.