OR and car on HP

jammie1

Posted about this the other day after my Or interview. So just quickly the OR are interested in realising the equity on my car that is on HP. Car is worth £2300 and on the day of br I had £1460 outstanding. So equity is £840. HP company are happy for me to keep up payments (4 months). OR has given me two choices either they take car to sell and release the equity or I keep the car and get a third party to buy the equity. Now I need a car for work (and also for my son who has a muscle problem though didn't tell OR this should I?) so was assuming it was going to be exempt as equity is less than the £2k. The ORs response was to get a loan to buy another car which I was quite surprised about and they would allow me up to £150 on my soa to pay this loan. Debtinfo - thank you - replied to my post the other day and quoted the following from the IS website but I'm not sure I understand it.


31.2.16 Exempt property
The exempt property provisions [note 5] (see Part 3) apply to items acquired by the bankrupt whether for cash or subject to finance agreements. The provisions apply even if there is no equity in the agreement. The hiring owner should be notified of the bankruptcy order, whether a claim has been made to the item as exempt property and, if so, whether the claim has been accepted by the official receiver. If the hiring owner is discontent with the position, e.g. the bankrupt is in arrears with payments, it may choose to exercise a right under the agreement to repossess the vehicle (see paragraph 31.2.12)


I hate dealing with people on the phone so can I just e-mail and ask them to explain why my car isn't exempt, or should I ring. I have been given until the 17th of August to send a written offer for the equity in.

I have also today applied for dla for my son, if we get it will I have to tell the OR about this? Does it get included in calculations for income on soa?

Many thanks

debtinfo

Im not sure who you got (maybe a trainee) but the examiner should not be telling you to get a loan. Which office are you at. It's up to you whether you phone or e-mail but you will get an answer quicker if you ring. The OR should not be trying to realise the vehicle if there is only £800 of equity as this is the asset not the £2300. Quote the above passage to them and ask why it cannot be exempted for work purposes.

jammie1

Thank you was hoping you might reply, I am at Leeds OR office and must admit I was dumbfounded when she suggested a loan to buy another car so that I could get to work. Will ring tomorrow, I just get tongue tied on the phone but will just ring and then will get somewhere quicker hopefully. Must admit I was a bit surprised when she said they would want the equity. Most of the OR interview was taken up discussing this. Thanks again I would not have known otherwise had it not been for this forum.