Car Advice

jojopo000

Hi,
I am looking for advice please? I have a car on HP which if I go BR will obviously be taken but due to my works remote location I wouldn't be able to get to work with a car. Does anyone know what would happen please? (other than me loosing my job as I wouldn't be able to get there).
Many thanks

Minkym00

It won’t necessarily be reclaimed by the HP company. Have you spoken to them? Some have terms that state they will terminate if their client is made bankrupt (e.g. Mercedes), but not all of them do. However you may not be able to claim the whole finance cost when calculating an IPA. How much per month are you paying?

fatbelly

If you need a car for work (usually that means that the car is a part of your job - if you can get to your place of work by public transport it may not be deemed necessary) then you are allowed to have one up to the value of £1000.

You haven't gone bankrupt yet - is there a way you could acquire a cheap one?

flipflopflo

I would stop paying the HP payments and save the money to buy a new car of up to £1k before going BR. It will take the HP company a few months before reclaiming the car so you can use it  until they do. Then the HP debt can go into your BR. 

How much are the HP payments?

JCS1

How much is the car worth and what is the remainig finance?

MalMonroe

flipflopflo said:

I would stop paying the HP payments and save the money to buy a new car of up to £1k before going BR. It will take the HP company a few months before reclaiming the car so you can use it  until they do. Then the HP debt can go into your BR. 

How much are the HP payments?

Is that an acceptable move? It's like planning to be in debt before it happens, and also seems really underhand. I had a DRO in the past and am now recovered and have a car on 24 months 0% interest PCP.  What do you think Martin would advise? Just out of interest, I'm not being awkward.

flipflopflo

It was something that the CAB advisor advised and also Stepchange. Also something that has been advised on this board. Why throw good money after bad? The OR won’t bat an eyelid, they know how the world works. 

fatbelly

Yes the advice is good but JCS's questions are relevant

sourcrates

MalMonroe said:

flipflopflo said:

I would stop paying the HP payments and save the money to buy a new car of up to £1k before going BR. It will take the HP company a few months before reclaiming the car so you can use it  until they do. Then the HP debt can go into your BR. 

How much are the HP payments?

Is that an acceptable move? It's like planning to be in debt before it happens, and also seems really underhand. I had a DRO in the past and am now recovered and have a car on 24 months 0% interest PCP.  What do you think Martin would advise? Just out of interest, I'm not being awkward.

When concidering taking a major step such as bankrupcy, the 6 P`s rule applies -

"Pre Planning Prevents Pxxx Poor Performance".

You pre-plan everything, such as making sure you have plenty of available cash to hand, as your old account may be frozen, a new bank account that you can safely use, make sure your wages go into this account, a car, if needed, that the OR will have no interest in.

You do this by any legal means you see fit, stopping creditor repayments, taking any available credit you may have to pay the bankrupcy fee, that kind of thing.

Too many people go into these things, especially IVA`s, with their eyes closed and just hope everything will be ok, well i don`t subscribe to that train of thought, you must look after yourself, as no one else will, best to be ontop of things from the get go.

pendramoon

Hello ladies and gets
Sorry to take the conversation to my situation but I think on bankruptcy and my wife has a bmw but it is in her name and I don't ven have a drivers license. Can they take the car away even it is not mine? We have a joint account with 300 pounds of overdraft limit.
Kind regards

flipflopflo

@pendramoon, please can you start your own thread with your own questions otherwise it’ll get confusing. Thank you.