AIB let us keep car now its unrepairable

mwilson12

Can anyone help please.

We were made bankrupt 24th March 09 and the AIB allowed us to keep our car so that we could start a new career in the private taxi business.

We were told to pay £40 per month to the AIB because of this and just the other day the car took ill and we cannot afford to get it repaired (thousands of pounds ).

The car has 1 year left and we have been paying for the last 4 years on HP payments we have asked for it to be included in the bankruptcy but as its over a year since BR we cannot.

Now we cannot work - we still have the payments on the car £387 per month and the £40 owed to AIB per month.

We can rent another taxi but it costs £190 per week

We need urgent advice please.
Our HP agreement states that we can return the car but I take it we cannot return a car which doesnt work.

Help as we thought things were getting better but they are getting worse.

JayR_3

Hi,

If your car is on HP then it wouldn't be included in your bankruptcy as the HP company own the car - not you. I'm confused as to why AiB take £40 per month for a car that's still on HP, Do you pay for an IPA? If the car goes back to the HP company then any money still left to pay would be included in your bankruptcy, you can still add this is a creditor. I'd call AiB and discuss the situation with them.
Sorry couldn't be more helpful.

DoshDolt

mwilson12 wrote: »

Can anyone help please.

We were made bankrupt 24th March 09 and the AIB allowed us to keep our car so that we could start a new career in the private taxi business.

We were told to pay £40 per month to the AIB because of this and just the other day the car took ill and we cannot afford to get it repaired (thousands of pounds ).

The car has 1 year left and we have been paying for the last 4 years on HP payments we have asked for it to be included in the bankruptcy but as its over a year since BR we cannot.

Now we cannot work - we still have the payments on the car £387 per month and the £40 owed to AIB per month.

We can rent another taxi but it costs £190 per week

We need urgent advice please.
Our HP agreement states that we can return the car but I take it we cannot return a car which doesnt work.

Help as we thought things were getting better but they are getting worse.

Hi mwilson12,

Please check out the threads called 'Bancruptcy in Scotland' there is a lot of info in there.

I found this bit:

Quote

"Hire purchase

Most hire purchase agreements contain a clause, which allows the creditor to repossess the goods if the client is sequestrated. The creditor will do this unless the trustee is prepared to guarantee the payments. The trustee may do this in the case of a car if it is essential to the client's work and the client can make contributions from surplus income, which are more than the cost of the car."

The only thing that I can think of is - is it possible to claim on your car insurance in some way? Repair or replacement?

You should certainly phone AiB straight away to see what they say. I would also advise that you arrange a visit with CAB.

All the best,

DD

mwilson12

Thank you to JR and DOSHDOT for your kind replies.
I called AIB trustee today as I was worried sick and got to speak to a more experienced chap about my situation.

He advised that I have to write immediately to Santander and ask for the car to be returned and he is 90% sure that any money owed from repairs and oustanding payments would be included in my BR.

I just wish I had spoken to him rather than to a young boy who told me to go and get a job.

I've hardly slept since last week and cant explain the relief - It just shows that even though I am now discharged there is still a chink of light if anything like this happens to other BR's.

PS. I have not received a discharge letter from my trustee should I have something to prove that I am discharged in order that I can fix out my Experian etc.

I will post an update once everything is dealt with by santander - hopefully all will be ok. xxx