Back from cab.

fatbelly

immoral_angeluk wrote: »

One of three things...

keep it aside and declare it as an asset and let the trustee deal with it.

Pay it off pro-rata to all creditors ensuring each one gets a fair payment.

Use a proportion of it to buy a lower value car (no more than 1.5-2k), and if anything else is needed for bills/living costs or getting the car up and running/MOTd/Insured etc etc then use it along with keeping some for bankruptcy fees. BUT the money can ONLY go on essential costs, otherwise it could be seen as depriving yourself of an asset pre-BR to avoid it being seized by the trustee.

IA is correct.

But as you're struggling to find the fees and you have an asset that you will lose in bankruptcy, why not go for option 3?

What you must NOT do (and you keep proposing to do it!) is use the proceeds of the sale to pay off one creditor, even if that was the one that was used to buy the car

jessie-jane

Have spoken to CAB again today and theyhave confirmed that we must not sell the car, must have mis-understood yesterdy.

We can not use option 3 as if sell the car the finance must be paid up before the new owner can have the car.

Also its pro-rata payments that CAB are sorting for us not token as i thought.

What will happen with the car when we dont pay the loan next month,will the loan company come and collect it or will it be a while before this happens,doesnt matter as we have the use of family members car from now.

Manoona

They will come and collect it, how long it takes is really dependant on teh company, I had my car through Welcome Finance and they didnt even tell me they were coming, just knocked on the door one day - luckily like you I had use of my mums car so it wasnt an inconvenience, although im sure that what they were hoping to achieve with an un-announced visit!

I think you can probably expect a few phone calls first, once they realise the payment hasnt been made, I would just direct them to the CAB dealing with your pro-rata payments, if they choose not to accept a lower payment then they will come and re-posses.

fatbelly

Manoona wrote: »

They will come and collect it, how long it takes is really dependant on teh company, I had my car through Welcome Finance and they didnt even tell me they were coming, just knocked on the door one day - luckily like you I had use of my mums car so it wasnt an inconvenience, although im sure that what they were hoping to achieve with an un-announced visit! .

I understood it was a personal loan, not HP. What gives them the right to reposess the goods?

jessie-jane

It is a personal loan, so what will happen, should we still insure it whilst not paying the loan for it as we will not be using it ,it will just be on the drive?