Car question

chinupchuck

My car is on ballon payment scheme with Black Horse. I've not paid them for four months now and have asked them to send through Voluntary Termination Documents which have arrived today.
My questions are:
1. If I sign and send this back, and have them come and collect the car, would this be seen as favouring a creditor?
2. The car is worth approx £4.5K and I owe approx £7.5K on it. If I was to sell the car for £4.5K what would I be "allowed" to do with the money? I was thinking £510 for court fees to go BR, and hand the rest over to the OR. Would this be acceptable to the OR? Obviously I realise I'd still owe Black Horse £7.4K on the agreement but this would go in with the bankruptcy.
The car has no insurance, no Tax and no MOT and I can't afford to run it as it gets about 17mpg so it's just not an option to keep it either way.
I don't really need a car at present as I can get lifts or buses to work until the end of August when I'm made redundant - no payout as the company is going into liquidation also no wages for last three months!!
Sorry if this seems like a silly question, I've just got no other way of raising the court fees at present.
Thanks in advance

smegs1978

chinupchuck wrote: »

My car is on ballon payment scheme with Black Horse. I've not paid them for four months now and have asked them to send through Voluntary Termination Documents which have arrived today.
My questions are:
1. If I sign and send this back, and have them come and collect the car, would this be seen as favouring a creditor?
2. The car is worth approx £4.5K and I owe approx £7.5K on it. If I was to sell the car for £4.5K what would I be "allowed" to do with the money? I was thinking £510 for court fees to go BR, and hand the rest over to the OR. Would this be acceptable to the OR? Obviously I realise I'd still owe Black Horse £7.4K on the agreement but this would go in with the bankruptcy.
The car has no insurance, no Tax and no MOT and I can't afford to run it as it gets about 17mpg so it's just not an option to keep it either way.
I don't really need a car at present as I can get lifts or buses to work until the end of August when I'm made redundant - no payout as the company is going into liquidation also no wages for last three months!!
Sorry if this seems like a silly question, I've just got no other way of raising the court fees at present.
Thanks in advance

If the car is on HP then i don't think you are legally allowed to sell it as it belongs to the finance company.

chinupchuck

Well the reason I asked is because when I phoned the finance company to ask for the VT documents the woman on the phone asked if I'd considered selling the car and actually urged me to do it. I just need to get a grasp of the implications and legalities of it.

mluton

As above you cannot sell the car as you do not own it legally.

But..............if you did manage to sell it, the new owners would have a visit from black horse and the car would be reposessed as they are not the owners.

Also most people get a HPI check prior to buying, so it would be a hard sale.

debtinfo

Hi chinup, it is very, very, very important to check the agreement, have alook and report back, your looking to see if it says Hire Purchase, or fixed sum loan agreement, then look at the details and see if their is a section about what happens if you dont pay (to see if it says repossession)