Van finance - charge on property I no longer own?

drpellypo

First off I confess that much of this is my fault! But here's the situation.

I sold my business to a chap down south and included in the business sale was an agreement that he take over the finance of the van. I contacted the finance company and they said we could just change the bank details over to his. We did this, but I put in the contract of the business sale that I would retain ownership of the van until such time the finance company had confirmed in writing he was the registered owner. I kept the spare key and log book for this reason. I also stated that should he miss a payment I would recover the van.

Contracts signed, and a week later the finance company tell me the checks on him have come back and they have rejected his application. Contrary to what they told me previously, they have now said they can no longer have the money come out of his bank and the only option is for me to pay, or they will collect the vehicle, sell it, and I will be responsible for the outstanding amount. I told the finance company that I simply do not have the money. I am in a DMP and everything that I earn goes out on bills and food, with whatever is remaining going to CCCS for the DMP. So they said they will put a charge on my property. But I don't own a property. Myself and family live with my parents. They said however, that they had done a land registry search and it comes back that I own a property and am paying a mortgage and they will put a charge on that. The property in question is one I owned three years ago but sold two years ago, paying off the mortgage. But they insisted it shows up as me owning it, so they would put a charge on it.

So I'm now left up in the air, with no idea what to do! If they do sell the van and I am responsible, then obviously they are not going to be able to recover the money through a charge on a property I do not own?

Can anyone offer any suggestions??

DarkConvict

Firstly, they need a CCJ before they can go for a charging order CO. So they are talking out their rear end and don't know what they are saying. They could do a CCJ with a forewith judgement (basically get a CCJ and CO at the same time), but i doubt they would get this for a hire purchase agreement at this first hurdle.

Furthermore, they cant place a CO on something you do not own.

End of the day, as you say you are responsible for it, all you can do is pay what you can afford, is there anything in the contract about volentary surrender, sometimes if you give it back after paying 50% of the original price, the hire purchased is ended with no charges.

drpellypo

Thanks for your reply! Nothing mentioned about voluntary surrender. The finance was taken out for 5 years. I've paid 14 months payments, then passed it over to the new chap.

DarkConvict

Gather up all your documents relating to this and have a read thought.

Next,

If this was a personal hire purchase in your name ring http://www.nationaldebtline.co.uk/

If it was a business one ring http://www.bdl.org.uk/

Both give free professional advice.