Car on finance seized

sammy32683

Hello,
I went BR on the 20th of February. The OR stated that he was happy for me to keep paying the finance but it was up to the car company if they allowed this. 
I have called the company who said they have not received the report from the OR yet and when they do they will seize the car and take it back despite me having kept up to date with all payments. 

I wanted to ask what happens with the finance when they seize it? I assume I owe them nothing? It was very high interest when I took it out recently and I still owe more than the car is worth so do I owe them the difference or because they are terminating the contract and the finance was taken out prior to bankruptcy owe them nothing?

A_Lert

Once the lender has repossessed the car, since you are bankrupt you will not owe them any more money.

mwarby

Bear in mind it’s also possible what is said in the phone (could be collections talk) and what actually happens maybe different(especially with car being worth less than loan). 

If car is repossessed, do you plan to get another vehicle ? If not remember to cancel insurance etc

ToxtethO'Grady

Most HP agreements will have an insolvency clause that is actionable if you enter BR, they reposses the car and any shortfall is included in the BR. You will have to update the Insolvency service when they do this.

If you get the Insolvency Service to put in writing they are happy for you to continue with the finance it is the finance companies decision to go for repossession. If your circumstances change during your BR it is up to the OR if you continue with the finance, not you, so some finance companies will terminate early to keep as much value in the car as they can.

Put your reasons for needing the car in writing and ask for a response in writing, as mwarby says, sometimes what's said is different to what happens. Check the agreement as well for the clause as it may state its only if you're in arrears that they'll repossess.

JCS1

If there is no equity in the vehicle, the OR will send a letter of non-adopt to the HP Company.  It is then down to the HP Company to decide what to do.  

sammy32683

Yea the OR said he will write to them saying he has no interest in the car but they said even if that's the case they will repossess. 

Yea I work shifts outside public transport hours and do 80 miles round trip a day for work so need a car which is why the OR was happy for me to keep it. So I will have to try and find the money to get a car when they do seize it. 

mwarby

Any plans on how your going to replace the car, if friends or family are putting up money to replace maybe worth offering lease company to purchase it, if the offer is anywhere near sensible (you get a car you know, they save on repossession costs)

sammy32683

I'll probably have to try and get a small loan from family (obviously okay it with the OR) and buy a cheap car.