Scotland, Lila, advice re car hp before i go bankrupt?

neilscot44

Hi, Wondering if anyone can give me a bit of advice.
I am planning bankrupcy via the LILA route, due to a failed business and debts building up over the years.
My question is.

The only thing i have of value over £1000 is my car.
Its on HP I still owe £2500 but the car is worth about £5000.
Obviously if i go bankrupt the HP firm can take the car away as its breach of HP and i have nothing.

Would it be wrong for me to trade the car into a garage where they know and pay of the Hp on the car and me to get two cars in return under a £1000 one for me one for my partner as he is going to go bankrupt as well again for same reasons.
His car at the moment is worth less than is owed, His is a loan not HP.

I really need a car as I have ME, I started college a few weeks back which is very tiring. There is no way i could walk a distance for public transport etc and do the college.

We are just finishing of the accounts for our business which closed end of august and will make a loss. Our accountant recommended the LILA route because of our personal debts and the fact we could be liable for a 4 and a half year lease on the shop.

Have made an appointment with CAB. but have not applied for bankrupcy yet.
Any help would be much appreciated as you can imagine, not sleeping, negative thoughts etc..
Thanks

lottodreams

neilscot44 wrote: »

Hi, Wondering if anyone can give me a bit of advice.
I am planning bankrupcy via the LILA route, due to a failed business and debts building up over the years.
My question is.

The only thing i have of value over £1000 is my car.
Its on HP I still owe £2500 but the car is worth about £5000.
Obviously if i go bankrupt the HP firm can take the car away as its breach of HP and i have nothing.

Would it be wrong for me to trade the car into a garage where they know and pay of the Hp on the car and me to get two cars in return under a £1000 one for me one for my partner as he is going to go bankrupt as well again for same reasons.
His car at the moment is worth less than is owed, His is a loan not HP.

I really need a car as I have ME, I started college a few weeks back which is very tiring. There is no way i could walk a distance for public transport etc and do the college.

We are just finishing of the accounts for our business which closed end of august and will make a loss. Our accountant recommended the LILA route because of our personal debts and the fact we could be liable for a 4 and a half year lease on the shop.

Have made an appointment with CAB. but have not applied for bankrupcy yet.
Any help would be much appreciated as you can imagine, not sleeping, negative thoughts etc..
Thanks

Hello I know this is a very worrying time.

The only thing I can say is my case worker asked me at my interview if I had spent or paid a bill for more than one thousand pounds in the previous six months

Make sure the DVLA have taken your name of the car you sell before going LILA as the AiB do search the DVLA records

Not sure about the HP thing you had better ask at the CAB

Lotty

neilscot44

Thanks Lotty,

Well was just a thought but looks like the relationship is hitting the wall as well, so wont need two cars. Will ask like you suggest when i have my cab meeting.