Only 5 months hp left on car. Can I keep it

loulourocks3004

Hi all. Hoping for some advice. I have completed the BR online form but can't submit it until I know what will happen with my car. I have paid almost four years and only have 6 payments left. The car is probably worth around £2000 but my question is. I use this to get to work but more importantly I care for my elderly mother and need it to transport her around. Will the OR agree to let me keep it? Would really appreciate some advice before submitting.

bradders1983

I assume there is no final balloon payment on the car?

You may be able to but those last 6 payments may be a concern.  Can you put it all off until those are paid? Even then it will all come down to if they deem the car to be essential, are you registered as her carer?

MalMonroe

 I'd speak to someone at Stepchange https://www.stepchange.org/  or Citizens Advice https://www.citizensadvice.org.uk/

And I say that because the car isn't yours yet. If it was yours, you'd probably be allowed to keep it because you need it to look after a dependant. If it was an expensive car they'd expect you to sell it and buy a cheaper one but I don't think that's the case here.

I'd contact one of the debt help agencies, just to be sure.  Hope that's helpful - and sorry if not. . .
 

loulourocks3004

No balloon payment at the end. I suppose its a little bit of suck it and see. However I would be in dire straits without the car. Mums disabled and relies on me. Its the only thing that's stopping me pressing the submit button. Is there anyone on here who has experienced a similar scenario and been able to keep it?

loulourocks3004

bradders1983 said:

I assume there is no final balloon payment on the car?

You may be able to but those last 6 payments may be a concern.  Can you put it all off until those are paid? Even then it will all come down to if they deem the car to be essential, are you registered as her carer?

Yes I am

Emmia

loulourocks3004 said:

No balloon payment at the end. I suppose its a little bit of suck it and see. However I would be in dire straits without the car. Mums disabled and relies on me. Its the only thing that's stopping me pressing the submit button. Is there anyone on here who has experienced a similar scenario and been able to keep it?

They could require you to sell your existing car, and purchase a different, cheaper car - so you wouldn't be car-less but you also wouldn't have your current motor.

luvchocolate

They usually say cars worth £1,000 or less are ok. 
I was lucky I got to keep my car valued at £1,500

bradders1983

You say it is "probably worth around £2k".....what car is it?

fatbelly

I think, because you have equity in the car they would allow the finance to complete - the maximum is £2500 left.

Then it would normally be sold to release the equity. Now the devil's in the detail here. If the car is only going to be worth £2k then it may not be worth allowing those final payments to go through.

If you were allowed to complete, would you be allowed to retain a car to care for someone?  The guidance says:

Subject to the guidance in paragraphs 30.132 to 30.133, a vehicle may be treated as exempt if the official receiver is satisfied that the bankrupt is an informal, full-time carer for a disabled relative or friend (in other words, has the vocation of a carer – see paragraph 30.133) and who would use the vehicle in connection with that role. 

Minkym00

What happens next actually depends on the HP company. I’ve only ever seen one car finance company not terminate the contract and recover the car upon bankruptcy. Check the Ts and Cs of the finance agreement and see if there is a termination upon bankruptcy clause.

loulourocks3004

bradders1983 said:

You say it is "probably worth around £2k".....what car is it?

I've been online for a value. Its around £1895 lowest value. I still owe around £1000 on it.