Voluntary repossession or forced prior to bankruptcy

tigerfeet2006

Yes they will. It's quite rare, although not unheard of, for a firm to let you continue to pay the HP in BR.

Two options I can think of are
A) stop paying for the cars and save the money to buy a cheap car (£1k-1.5k max) when they reposes the cars and put the debt into the BR.

do you have anyone who could take over the agreement and pay it for you and they let you drive and insure etc. the car.

tigerfeet2006

Yes they will. It's quite rare, although not unheard of, for a firm to let you continue to pay the HP in BR.

Is it £180 for both or just one, so £360 total.

Two options I can think of are
A) stop paying for the cars and save the money to buy a cheap car (£1k-1.5k max) when they reposes the cars and put the debt into the BR.

do you have anyone who could take over the agreement and pay it for you and they let you drive and insure etc. the car.

Ebonydeluxe

I pay £180 for one, the other is substantially more.

I am worried that if I don't pay on this vehicle I will risk the opportunity to argue my case that I wish to keep the car and can continue to pay. The other vehicle I will definitely stop paying.

I have now completed my bankruptcy form and awaiting pay day to pay it.

Thank you for your wisdom.

tigerfeet2006

I honestly don't think that you will get to keep the car from prior experience of being on these boards for 11 years. I honestly think you should stop paying the HP for a couple of months and use the money that you save for a couple of months to buy a car for £1k-1.5k. They won't repossess the cars immediately, you'll have at least 2 months before they take the cars. Once you have the car sorted then go BR.

Do you have a basic bank account sorted?

Get your ducks in a row before rushing into BR.

Ebonydeluxe

I have drafted all the creditor letters, with account numbers, etc. But not sent just yet.

I have opened a new account with no overdraft facility, but I need to go into branch and ask them to change this into their very basic account.

I have changed my bank details to have my payments put into my the new account.

Going to work on switching the direct debits for essential bills to the new account. Which I will do tonight and some in the morning, which I cannot do online and involve phoning.

Had some more news from work which is making it look more likely I will be made redundant. But this news just makes me feel happy that I decided to tackle my debt problem now.

National_Debtline

Hi Ebonydeluxe


Just an additional observation that I don't think has been made so far, having scrolled through the previous replies.


For the vehicle on which you wish to exercise your right to voluntary termination (VT), strictly speaking it will not matter whether you actually do that prior to going bankrupt. Any shortfall still owed to the car finance company will be a provable debt in your bankruptcy, whether its size has been established beforehand or not. Of course if you stop the payments and VT it right now, this is all academic anyway but I thought it was worth underlining.


Dennis
@natdebtline

Ebonydeluxe

Thank you for clarifying Dennis. I did worry that if I did not get the final bill (difference between outstanding finance and what the car is auctioned off for) from the finance company before entering bankruptcy it could not be added to the bankruptcy and I would be left with further payments to the finance company. But if it doesn’t matter either way then it will not be too stressful if it is I who voluntarily terminate or have it enforced upon me.

Thank you all for your replies. My only issue now is that I can’t stop this months wage going into my old bank account which means I can’t send them the letter I hoped to regarding not being able to make payments until I have transferred my pay to the new bank account. If I don’t do this I will not have the funds to pay for the bankruptcy. Main problem being that the overdraft fees are going to heavily dent my wage when it goes in. They keep making the charges daily even though I am over my overdraft. By pay day I will be about £60 of outstanding charges. Just have to take the hit.

National_Debtline

Hi again Ebonydeluxe


You may have asked about this already, but it might be worth asking the bank to waive the latest scheduled charges, given that their debt is going to end up in the bankruptcy anyway. Long shot perhaps, but if you don't ask...


Dennis
@natdebtline

Ebonydeluxe

Good advice, but I am worried that if I give them the heads up they will hold my salary onces it gets in there and i will not have access to this money.