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How is a car on HP affected by a DRO
chrisp1968
Posts: 22 Forumite
in IVA & DRO
I have very old debts owned by DCA's and I'm sick of being chased for them and have been advised to do a DRO, I rent my house, have no assets, but I do have a car on HP, only had it since September last year. I don't work as I have 2 registered disabled sons and need the car for getting them around. What will happen to my car if I do a DRO ? Thanks in advance for any help
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I'll try to look up the intermediary guidance notes on that tomorrow if no-one else has by then.Free/impartial debt advice: National Debtline | StepChange Debt Charity | Find your local CAB
IVA & fee charging DMP companies: Profits from misery, motivated ONLY by greed0 -
The HP agreement isn't reported on my credit report, if that would help. Thanks in advance0
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What is the car now worth and how much has been paid off?
Are you up to date with payments?
Looks like if not in arrears then you could choose to not have it scheduled in the DRO, but depending what value is left in the vehicle you may not be allowed the monthly payments as an allowable expense of the car has more than £1,000 value in it?Free/impartial debt advice: National Debtline | StepChange Debt Charity | Find your local CAB
IVA & fee charging DMP companies: Profits from misery, motivated ONLY by greed0 -
The car is worth about £9000, not much been paid off, but I thought if it meets the basic needs of my family, they might let me keep it.0
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I'm not in arrears0
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This is one example from the intermediary guidance notes.
Free/impartial debt advice: National Debtline | StepChange Debt Charity | Find your local CAB
IVA & fee charging DMP companies: Profits from misery, motivated ONLY by greed0 -
chrisp1968 wrote: »The car is worth about £9000, not much been paid off, but I thought if it meets the basic needs of my family, they might let me keep it.
This is what is says about payment being allowed as an expense.
Free/impartial debt advice: National Debtline | StepChange Debt Charity | Find your local CAB
IVA & fee charging DMP companies: Profits from misery, motivated ONLY by greed0 -
Hmmm. I missed the disabled part, so perhaps that may help with that?
We have 2 or 3 posters here who are approved intermediaries.
I'll see if any are about and can give a firmer answer?Free/impartial debt advice: National Debtline | StepChange Debt Charity | Find your local CAB
IVA & fee charging DMP companies: Profits from misery, motivated ONLY by greed0 -
Hi
Action 2/outcome 2 from Fermi's post may be possible.
Would your sons' DLA payments (these do not count as your income) be enough to cover the HP payments? Or could another 3rd party (partner, grandparent?) cover them? Or a mixture of these?0 -
I believe my sons DLA payments are not allowed to be used as income and It is enough to cover the payment. Thanks for any help0
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