Trying to get a DRO

rectangle

Hello all,

I am trying to get a DRO, but I have a car on a HP (Conditional Sale Agreement). I rang the finance company and the early repayment figure is around £3000
My wife and I really love the car, and really want to keep it. I have rung stapchange and they have said that you cannot have a DRO if you have a car on HP.

Is there any way around this?

I thought maybe paying the car off with credit cards (£1200 from my wife's cards, £1350 from my cards, £450 cash from my father), then signing the V5 over to my wife's name.
But the points against this are:
1) Getting further into debt knowing you have no way of paying it off.
2) They would check my credit file and see that I have just paid off a HP agreement, then they would check my credit card statements and find Ive just paid £1350 to the company Ive just finished a HP agreement with)

Another (but unlikely to happen) way is to transfer the finance agreement and the V5 into my fathers name and pay him monthly.
But again, they will ask 'Why is this £100 a month going to your father. And we notice you've just stopped paying a HP company £100.

National_Debtline

Hi rectangle


What is the car actually worth in its current condition?


Dennis
@natdebtline

rectangle

National_Debtline wrote: »

Hi rectangle


What is the car actually worth in its current condition?


Dennis
@natdebtline

I couldn't say for certain. I would hope for £3500. I will take it to the dealer we bought it from for a valuation on saturday.

debt_doctor

Hi,
It is wrong to say you can't have a car on HP and have a DRO but there are rules......


The car is not your asset as it belongs to the HP company until the last payment is made. (You are sure it's HP aren't you?).
HP agreements (as well as phone contracts and other service contracts) can be excluded from the DRO process providing they are up to date.
As the car is worth more than £1000 then even if you chose to exclude the agreement because it was up to date -then you could not make the payments as they would not be an allowable expense for you.
However, someone else can make the payments for you, if they chose to do so.
Make sure that the HP agreement doesn't end during the DRO moratorium period or you will suddenly own it as an asset.
A DRO is calculated by subtracting your living costs (not the car purchase) from YOUR income.
DD