Bankruptcy and cars

spiritless

Hello all.

(Please be gentle with me!)

I've just spent an hour on the phone to CCCS. I had a lot of my questions answered (they're great, huh?) but now I'm digesting what they said I've got a few more.

We have 2 cars on finance (personal loans, not HP). One has 3 years left, one 6 years left (only just took this one out as the last car died).

My husband works 35 miles away so needs his car to get to work (and is unable to look for work closer to home due to the specialist nature of his role). The children go to school 5 miles away (placed here by the county council as there are no other schools with space more locally). So we both need a car (husband has to be at work 2 hours before school and finishes 4 hours after school so he couldn't do both runs).

I'm aware that we would lose the cars. However how do we afford to get 2 cheaper replacements when we have no spare funds at all? The cars are not worth what is left on the credit agreements- is there no chance that we'd get to keep them?

To be honest, my head may just explode with all of this and I can't think straight enough to see a way out. Any advice very much appreciated.

tigerfeet2006

Are you both going BR?

How much are both cars worth?

spiritless

Yes, all debts are joint so we will both go down the same route.

Car 1 is worth 4000 (personal loan is around £2000 more than this)
Car 2 is worth 7100 (personal loan is around £2500 more than this)

tigerfeet2006

Well as you have no doubt been told the loans will go into the BR so that is no problem.

Would you be able to sell one of the cars privatly. I know it is difficult with outstanding finance but a cash buyer through the local paper might be fine. Then use the money to buy your DH a car for under the £2k mark and you a run around of around the £1k mark. You just need to make sure you get the best price for the car and try not to go to much under value. Then you could use what is left to go towards your BR fees. Make sure you keep a paper trail.

Is there anyone who would be willing to buy the OR's interest in one or both of the cars (£2K OR £5K)

Other wise it is waiting until the OR sells the cars at auction and gives you the money to buy a new car.

Make sure you write a good case for keeping your car.

spiritless

So we could sell the 2 cars we have for any price (even a nominal price)? and then borrow cars for daily use from a family member (and incur costs for the daily running ourselves such as tax etc). Would we have any issues regarding the debt if we don't have the cars?

Fiddlestick

tigerfeet2006 wrote: »

Would you be able to sell one of the cars privatly. I know it is difficult with outstanding finance but a cash buyer through the local paper might be fine.

An HPI check done by the prospective buyer would show the finance would it not?

spiritless

But could we sell the cars to a friend or family member?

frosty1970

spiritless wrote: »

But could we sell the cars to a friend or family member?

long as the vehicle is sold for FULL market value shouldnt be an issue..if you did try to sell to a family member on the cheap you could be in a world of hassles

HateBanks

spiritless wrote: »

We have 2 cars on finance (personal loans, not HP).

If the cars are on personal loans these will be 'wiped off' by your BR, and wont show on HPI checks, if YOU sell them, to anyone, family members or strangers, you must keep receipts etc and prove you have not sold them for less than market value, as other folk have said... could be a whole lot of trouble.
Could you sell one thru Autotrader or something and buy 2 cheaper cars, in preparation, then give the 2nd one up to OR when the time comes?
That may give you enough equity for BR fees too?
good luck.