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

loulourocks3004

fatbelly said:

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. 

Ty for this information. Thats very helpful

Bluecar2

Hi had a very similar situation to yours,Prior to my bankruptcy i had stopped paying the finance for 6 months as i was being made bankrupt by HMRC and had it postponed 3 times through no fault of my own which means my finance had gone in to default with an outstanding balance of approx £1500, there was a clause in the finance saying they would take it back if i was bankrupt hence my reason for not paying, When i had my interview the OR declared that my car had a value of £3250 but because it was on finance he had no interest in the vehicle, I got him to send me a letter stating this and that we were free to speak to the finance company how we saw fit and that they had no interest in the car, My sons then contacted the finance company and offered them a full and final settlement of £800 which they quickly said yes to as it would have cost almost that to recover the vehicle from me,