Can i keep my car

Speaky7

Hello new to the forum and looking for help.
6 or so months ago we voluntary repossessed our home for reasons i done want to go in to as such, and we moved to renting accommodation.
For the last 3months we have been preparing for bankcruptcy making token payments to our creditors apart from our car finance.
Our hire purchase Agreement still has a remaining 48months of 250per month.
We drive a lot of miles per day work school runs etc
Would we be aloud to keep this car and continue making payments when we file for bankcrupcy

foxy-stoat

If its worth a few hundred pounds then probably, this is worth £12,000 to the lender so it will more than likely be repossessed.

missile

No chance you would be allowed to stop paying HP and keep your car.

If it still has 4 years to pay then it may be worth less than the outstanding HP finance?

foxy-stoat

No chance he would be allowed to continue paying and keep the car as well - it would be an asset to the OR.

Speaky7

Hi i have made 6x 250 payments so far
Never missed a payment because it is essential.
What would they expect us to do car wise
We need a reliable car.

noobinvestor

It doesn't matter if you never missed a payment.


Under BR, all your debts are included such as car finance and you're only allowed to have a car that's only worth under 1000 pounds.


You will need to buy an old used car.

JCS1

noobinvestor wrote: »

It doesn't matter if you never missed a payment.


Under BR, all your debts are included such as car finance and you're only allowed to have a car that's only worth under 1000 pounds.


You will need to buy an old used car.

HP is a secured debt, and therefore would not be included in bankruptcy.


What will happen - the OR will review the vehicle value against the outstanding finance. Assuming there is no equity, the OR will write to the HP company and send a letter of non-adopt. It is then down to the HP company as to what they do (if they do take the car back, the HP then becomes unsecured and would fall into the bankruptcy).

JCS1

foxy-stoat wrote: »

No chance he would be allowed to continue paying and keep the car as well - it would be an asset to the OR.

As HP is secured loan, it would only be an asset if there was any equity in the vehicle. After only 6 payments, this would be unlikely.

TheGardener

The other issue would be what kind of finance arrangement it is - it is usual for the finance provider to cancel the agreement in the event of a BR. Read the T&C's of the finance agreement.
Is it an actual HP agreement or is it more like a PCL agreement?

Speaky7

I cant find my paper work but i am
100% sure its hp.
If they take the car away then i will have to get over it but i need something reliable
Having had so many cars in the past old cheap run arounds all have broke with hefty bills. unless the op let me Have 100 monthly budget for car matience because thats what happen with old cars.

noobinvestor

Old cars should be more reliable, as long as it's not a luxury brand such as Audi or BMW etc.


Go for an Asian car like Toyota and avoid French cars!