Finance Agreement/Car & BR

Kj123_2

Evening everyone.

I have read the advice on cars and BR but am still lost in my own situation. I hope that somebody will be able to help me out a little.

I am currently 13 months into a 36 month agreement and have come to the decision that the OR would be extremely reluctant to let me keep the vehicle. It is worth about £4500 - £5000.

I have missed the last payment (put it towards BR Fees) and they have obviously been in touch with me to ask what's going on.

I told them initially that I was just having a bad month and that I would try and make the payment up but now with the next payment due at the end of the month and with my appointment in court on the 1st August 2007 I thought I'd inform them of what's going on. This was in order to try and save myself some messing around and also to be open and honest with them.

The lady I spoke with on the phone informed me that I didn't have to include the finance agreement in my BR petition as it's secured against the car. This brings me to my first question:

Q. Is she correct?

I thought I didn't have any choice in the matter as at the moment it accounts (along with the GAP insurance) for about £183 a month. So assumed that the OR would never let me keep that on.

I questioned her comment and she said that it was up to me. But if I were to include them as a creditor on the BR petition then they want me to Voluntary Surrender the vehicle.

Q. Can I voluntary surrender without penalty from the OR?

I thought if I did this then it could be seen as preferential treatment towards a creditor.

When I mentioned this she said that if my intentions were to remain the same they would issue me with a Default Notice and then commence the repossesion route.

Any help or words of wisdom you may be able to pass my way would be most welcome.

Cheers,

Kj

Richard_S

Kj123 wrote: »

Evening everyone.

I have read the advice on cars and BR but am still lost in my own situation. I hope that somebody will be able to help me out a little.

I am currently 13 months into a 36 month agreement and have come to the decision that the OR would be extremely reluctant to let me keep the vehicle. It is worth about £4500 - £5000.

I have missed the last payment (put it towards BR Fees) and they have obviously been in touch with me to ask what's going on.

I told them initially that I was just having a bad month and that I would try and make the payment up but now with the next payment due at the end of the month and with my appointment in court on the 1st August 2007 I thought I'd inform them of what's going on. This was in order to try and save myself some messing around and also to be open and honest with them.

The lady I spoke with on the phone informed me that I didn't have to include the finance agreement in my BR petition as it's secured against the car. This brings me to my first question:

Q. Is she correct? No, you have to declare all assets and liabilities to the O.R.

I thought I didn't have any choice in the matter as at the moment it accounts (along with the GAP insurance) for about £183 a month. So assumed that the OR would never let me keep that on. It depends on your personal circumstances, if you need a reliable car to conduct your business or do your job then the O.R "might" allow it as an essential item of expenditure.

I questioned her comment and she said that it was up to me. But if I were to include them as a creditor on the BR petition then they want me to Voluntary Surrender the vehicle. If you're definitely going to declare bankruptcy then it really doesn't matter how you return the car.

Q. Can I voluntary surrender without penalty from the OR? As long as you keep the O.R informed of the situation and what you're doing then there'd be no problem; they would advise you of the best course of action.

I thought if I did this then it could be seen as preferential treatment towards a creditor. That wouldn't be seen as preferential treatment.

When I mentioned this she said that if my intentions were to remain the same they would issue me with a Default Notice and then commence the repossesion route. It really doesn't matter what they do if you intend to declare bankruptcy.

Any help or words of wisdom you may be able to pass my way would be most welcome.

Cheers,

Kj

Hi Kj,

As far as cars go yours is probably one of those awful grey areas; we've tried to collate everybody's experience of the treatment of cars but there really is no consistency. What one O.R accepts another will reject; the black and whire areas are easy, it's the grey areas that cause the problems.

Regards

Richard

Kj123_2

Thanks for the reply Richard.

You've certainly helped me get a few things clearer in my head.

I think I have a case to actually have a car and I know of the reasons I can use to my advantage when the time comes with the OR. Just not one that will cost me £183 per month before any running costs are added.

As a partial solution to the problem (although could cause one in itself) my Dad has offered to stump me the cash for a run-around. That way I can still include the running costs in my SOA. Although I'm not sure if this is wise.

0002

Do different OR's have different standards on how they treat cars / bankrupts?

I think I read somewhere that OR's have a guide value of £2000 for allowance for cars when a situation arises where the OR deems that a car is required by the bankrupt.

What REAL experience have other bankrupts had with cars?

tight_jock

0002 wrote: »

Do different OR's have different standards on how they treat cars / bankrupts?

I think I read somewhere that OR's have a guide value of £2000 for allowance for cars when a situation arises where the OR deems that a car is required by the bankrupt.

What REAL experience have other bankrupts had with cars?

Although there are guidelines for taking a car, there is no actual value placed on it. Each OR has their own agenda where cars are concerned. The best way forward is to make as good a case as you can to keep it. The value at the bottom end of the market is really irrelevant.
:beer: