Update on car HP and OR

jammie1

Not much change today though I did ring. Didn't get to speak to the person dealing with it, though the person I spoke to relayed everything to the usual person (rather frustrating). I had to explain everything several times, the answer relayed to me was that the valuation of £2300 is standing and that the hp is irrelevant so they aren't including it. I said but if the car was to be sold then the hp would be paid leaving a max of £860 so that is all they are exempting which is less that the £2k, he just basically repeated the same that they are only taking into account the valuation. I asked who else I could speak to and he just said the person dealing with it so will ring her again tomorrow and hopefully get to speak to her.

JCS1

Ask to speak to the AOR assigned to your case, think it's time to bypass the examiner.

debtinfo

Hi jammie, remember when you speak to them tomorrow to ask how they expect to make a profit for the creditors (which is their primary concern) with all the costs of disposing of the vehicle. Perhaps even ask what the costs of their local agent are. As said above ask to speak to the OR or AOR as it is these people who vet the decisions of the examiner

blind-as-a-bat_2

31.2.25 Exempt vehicles of excess value (updated August 2008)
Where an exempt vehicle appears to have a significant value, the official receiver, when acting as trustee, may claim it for the estate if he/she considers that the realisable value of the vehicle exceeds the cost of a reasonable replacement [note 7]. The vehicle must be claimed by notice in writing no later than 42 days after it came to the knowledge of the trustee (in the case of the official receiver, on his/her becoming trustee) [note 8]. Any notice after this time can only be made with the leave of the court. The official receiver should not normally take any steps to claim an exempt vehicle unless the potential net realisation to the estate is at least £500 after taking into account any costs of sale and of a replacement vehicle. A third party contribution equivalent to the net value of the car to the estate may be accepted to avoid the seizure, sale and replacement of the vehicle. This will also need to cover the value of any cherished/personalised registration mark if that is also to be retained by the bankrupt (see paragraph 31.2.25A)



31.2.26 Provision of a suitable replacement
Where a decision is made to replace an exempt vehicle with a cheaper alternative [note 7] the official receiver should inform the bankrupt of the amount he/she is prepared to make available out of the sale proceeds. The official receiver has discretion as to the amount allowed for the replacement which should be sufficient for the bankrupt to buy a replacement vehicle which is suitable for his/her needs. For consistency between official receiver's offices a guideline maximum figure of £2,000 has been introduced. While official receivers may exceptionally exceed this figure depending on the purpose for which the vehicle is used, it should be adhered to as frequently as possible.Depending on the circumstances of each case the payment to purchase the replacement vehicle may be made to the bankrupt directly or to the vendor of the vehicle. The most secure way to undertake the purchase is payment direct to the vendor. It is recognised that a bankrupt may be able to obtain a better deal to purchase a vehicle by negotiating a private sale or attending a car auction and in such circumstances immediate access to cash is required. If an allowance from the proceeds of sale is made directly to the bankrupt then the official receiver should request evidence of the purchase of the vehicle within 21 days

Not quite applicable, but sums up what is expected.

They wont net £500 or more in this situation

Now if you factor in to the mix the scrappage allowance, and the impact on second hand car sales the examinour is speaking out of his a.....nyway

Follow JCS1's advice

jammie1

I rang today, have been putting it off I don't know why.
So I said that they are only exempting the £840 as the rest is on hp, and as this is below the £2k then I shouldn't have to pay the £300. She said she understood what I was saying and would get back to me. Well she rang back and basically gave me a choice.

1. They allow my car payments in my soa which actually leaves me with a defecit so no IPA but I pay the £300 as the car will be paid for this year as only 4 payments left so she said I could then sell it for £2300. I did say well it will be worth less by then, but she said it is paid for this year so will probably be worth the same.

2. I don't pay the £300 and they don't allow the payments in my soa and I pay an IPA of £50 as surplus is £100. However this is going to be reviewed in October when I return to work (currently on maternity leave) and I will not have a £100 surplus then. So effectively I think would pay the £50 for August and September and then it would stop? If they are that quick getting organised. However my contents insurance has gone up by £5 so would reduce my surplus to £95 so should I let them know this.

I said about how they wouldn't realise the £840 due to costs involved etc but she wouldn't get into that conversation. She just kept saying that she had to do what is best for the creditors. I don't quite know what to do now.

jammie1

Any thoughts on above?

movingforward2010

fiveyearplan wrote: »

Good luck with it.

I can't believe they told you to take a loan!

my OR wanted a cheque off me when i bought my private number plate back off them, I pointed out i wasnt 'allowed' a cheque book, she was speechless for a moment then suggested i get a 3rd party to do a cheque :rotfl::rotfl:

debtinfo

Hi jammie, i still think that they are wrong but it seems that you are not going to win. I try to offer info only so can't tell you what to do except to do what is best for you

blind-as-a-bat_2

jammie1 wrote: »

I rang today, have been putting it off I don't know why.
So I said that they are only exempting the £840 as the rest is on hp, and as this is below the £2k then I shouldn't have to pay the £300. She said she understood what I was saying and would get back to me. Well she rang back and basically gave me a choice.

1. They allow my car payments in my soa which actually leaves me with a defecit so no IPA but I pay the £300 as the car will be paid for this year as only 4 payments left so she said I could then sell it for £2300. I did say well it will be worth less by then, but she said it is paid for this year so will probably be worth the same.

2. I don't pay the £300 and they don't allow the payments in my soa and I pay an IPA of £50 as surplus is £100. However this is going to be reviewed in October when I return to work (currently on maternity leave) and I will not have a £100 surplus then. So effectively I think would pay the £50 for August and September and then it would stop? If they are that quick getting organised. However my contents insurance has gone up by £5 so would reduce my surplus to £95 so should I let them know this.

I said about how they wouldn't realise the £840 due to costs involved etc but she wouldn't get into that conversation. She just kept saying that she had to do what is best for the creditors. I don't quite know what to do now.

The OR fee's are £1800, best for the creditors my a.....nyway

The cost,s of selling a car on HP will swollow up ALL of that She is trying it on


The question is how do you call her bluff?

Get the car valued at an auction house in its presant condition, most are reluctent to do this, at least in writing, but you may get someone to 'slip'

Bear in mind if the OR decides to take it, they must get it to the nearest auction, at there cost, so where is your nearest?

She is trying it on, but calling an examinours bluff is a difficult, if not dangerous game

One tip, try to price up your transport costs without the car, if they mean she wont be able to get an IPA regardless, you may win;)

Lets put it this way, the round trp to my nearest suppermarket cost's £5

But i cant do it by bus both ways, it would cost £12.50 for the bus there and taxi home.

now if you had to taxi it both ways as you have a disabilaty/health issue or lack of regualer public transport..............

Do you see what i am getting at here?

If you can prove it is less financialy viable.............

jammie1

Have already proved it is not financially viable to get there by public transport, it would mean two buses, then a train then a taxi! But hadn't thought about saying that they wouldn't get an IPA. However I think I will just pay the £300 to have this sorted so I can move on. At least thanks to this board it is £300 and not £840 which would have been difficult to do.
Thanks to everyone that has helped me with this.