Car HP (help) and a little about me !

brighter_side_of_life

Hi Everyone

A little bit about me. I was made bankrupt on 23rd June 2009 following a failed IVA application. Confused and upset I found this board by chance whilst doing an internet search a few days after my bankruptcy at court. I wish I had found you guys sooner! Up till then I was on my own.

You have helped me come to terms and make sense of things, turning many a sleepness night into a somewhat restful one. Its a hard journey, and sometimes I get very scared and worried. Logging on to this board kind of gives me peace of mind knowing I am not alone.

Thank you -

I hope you dont mind, I have a quick question. Things have gone fairly smoothly so far. However, I received a letter from the HP company who want to repossess the car (a clause in the t&c that states bankruptcy will result in the car being repossessed).

They are saying that any shortfall/balance outstanding when the car is sold will be my responsibility. Surely this cant be right. My OR says that it will form part of the bankruptcy but I am worried that they might be wrong. Is this always the case or are there some exceptions?

Also, the car is very tired, done a lot of mileage (84,000 plus, 4 years old) and I havent got a full service history. There is also some damage to the front bumper (a stone hit it on the motorway and broke a bit off). I am worried I will get into troube. Oh and to boot, it is not registered in my name although I control the finance!

What will happen, will I owe them money for the outstanding balance (if any) and for the damage and no full service history?

Oh, and what happens if the car fetches more than the £3000 I owe - will i get it back? Will that be mine or the OR's ?

I do hope you can help. thanks again everyone.

Three_Clicks

Hi

You said:-

Oh and to boot, it is not registered in my name although I control the finance!

Is it your name on the HP agreement?

If not and your payments are OK they cannot take the car.

If it is your name on the HP have you told your OR about the car???

brighter_side_of_life

Hi three clicks

The HP is in my name and yes, I told the OR about the car - it was detailed in my Statement of affairs etc. The OR let me keep my car for work purposes etc but stressed he had no interest in the HP car - only that he cannot allow the payments (my boyfriend was making these).

thanks

Three_Clicks

brighter_side_of_life wrote: »

My OR says that it will form part of the bankruptcy but I am worried that they might be wrong.

I would email or call your OR and ask him/her to confirm this in writing to you.

Also have you told the OR that they want the car back now???

brighter_side_of_life

Thanks, I will. The OR knows I had 2 cars. One was paid for and in my name. The other was on finance (finance in my name) but registered and driven by my boyfriend.

The OR said that I would have to contact the finance company and sort out with them what they would like to do (take back the car or let my boyfriend pay off/take over the finance). The finance company have a clause in their contract which states the car will be repossessed if you become bankrupt. Non negotiable! Also states that they wont allow anyone to take over the agreement either.

The car is a headache and we cant afford it so probably best it goes back and we use my car as a run-around. My boyfriend will sort himself out. I am just worried that they will come to me for any shortfall.

I have written to the finance company saying I am willing to give the car back (no need for a court order) and that any shortfall of any kind will form part of the bankruptcy. I have sent a copy of the letter to my OR.

I am just waiting to hear what will happen.

Thats whats hard about bankruptcy - always waiting, not knowing. Its so stressful. I always hope no news is good news but I think that only applies to the OR's !!

philnicandamy

Ah the old rollercoaster that is bankruptcy...

brighter_side_of_life

yes, absolutely ! it certainly has it ups and downs ! No regrets though. But its tough!