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Car on HP what next?
Hello everyone, not sure if this is posted in the correct area but here goes....
My situation is that i am a self employed painter and last year i was out of work for 3 months due to 2 factors, 1 was the lack of work and 2 was because i was off work due to an illness that effects the areas of work i carry out which in turn reduces my income. I contacted the CCCS and in turn all my creditors was happy for me to make reduce payments.
The HP company where i have my car with agreed to extend the term to reduce my HP payment on my car. This was about £20 per month less. They would not go any lower! So i struggled, but managed to keep these minimum payments going with them. In the mean time they were adding charges of £70 everytime i was late in paying.
Well anyway, last December i had no work come in and as it stands at the moment i have nothing booked for January.
I am in arrears with my Mortgage by 3 months and will be 4 months at the end of this month (have been contacted by mortgage company, but the wife has rearranged her working hours so as of February the mortgage can be paid regardless of my work situation).
So here is where i need help, i cannot afford to keep our car, we have thought about it long and hard and decided the best course of action would be to hand it back.
The outstanding balance is £6200.00, with the car being worth £4400.00 as a trade in. If i was allowed to (but im not under any HP agreement) this car would sell privately for £5800.00 - £6200.00.
I spoke to the HP company explaining i cannot afford the monthly payments, and they have sent me a self surrender form to fill out and send back.
They told me that once recieved, they will collect the vehicle and sell it at auction. Any costs left over, for example it might only reach £3500.00 at auction, i know i would have to settle the balance of say £2700.00 or whatever it is.
Because i am on a reduced income, and all my creditors are receiving lower payments, as i have sent them all a income and expenditure form etc, do you think they would accept or come to an arrangement to pay of the balance with what i would have spare, which would be in the region of £20-£30 per month? Or can they persue this and have this effect anything with my mortgage like a charge or something? Im sorry i am asking here, but the HP company will not tell me how they will recover the shortfall or what would be involved.
Thankyou for looking, and hopefully this might help me shed some light on this matter.
My situation is that i am a self employed painter and last year i was out of work for 3 months due to 2 factors, 1 was the lack of work and 2 was because i was off work due to an illness that effects the areas of work i carry out which in turn reduces my income. I contacted the CCCS and in turn all my creditors was happy for me to make reduce payments.
The HP company where i have my car with agreed to extend the term to reduce my HP payment on my car. This was about £20 per month less. They would not go any lower! So i struggled, but managed to keep these minimum payments going with them. In the mean time they were adding charges of £70 everytime i was late in paying.
Well anyway, last December i had no work come in and as it stands at the moment i have nothing booked for January.
I am in arrears with my Mortgage by 3 months and will be 4 months at the end of this month (have been contacted by mortgage company, but the wife has rearranged her working hours so as of February the mortgage can be paid regardless of my work situation).
So here is where i need help, i cannot afford to keep our car, we have thought about it long and hard and decided the best course of action would be to hand it back.
The outstanding balance is £6200.00, with the car being worth £4400.00 as a trade in. If i was allowed to (but im not under any HP agreement) this car would sell privately for £5800.00 - £6200.00.
I spoke to the HP company explaining i cannot afford the monthly payments, and they have sent me a self surrender form to fill out and send back.
They told me that once recieved, they will collect the vehicle and sell it at auction. Any costs left over, for example it might only reach £3500.00 at auction, i know i would have to settle the balance of say £2700.00 or whatever it is.
Because i am on a reduced income, and all my creditors are receiving lower payments, as i have sent them all a income and expenditure form etc, do you think they would accept or come to an arrangement to pay of the balance with what i would have spare, which would be in the region of £20-£30 per month? Or can they persue this and have this effect anything with my mortgage like a charge or something? Im sorry i am asking here, but the HP company will not tell me how they will recover the shortfall or what would be involved.
Thankyou for looking, and hopefully this might help me shed some light on this matter.
0
Comments
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Hi, I am no expert, but I suspect once they auction the vehicle, the balance you owe will become an unsecured loan, with a punitive interest rate and according notes on your credit record. £20/month against a loan of (say) £2700 will barely service the interest, so I doubt they'd accept that , and may well ask for a lein on other property, or sell the debts to a collections agency. I suggest you need to sort this all out with professional help - it could make a big difference to how much you end up paying, and how your credit record will look at the end of it. Try the CAB as your next port of call, and go in asking if they can help you sort out all your creditors and financial position.0
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read this for Hp info:
http://www.direct.gov.uk/en/MoneyTaxAndBenefits/ManagingDebt/DebtsAndArrears/DG_100132260
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