Car Lease / PCH after bankruptcy

smithyyy88

Hi,

I have had an Audi Q2 on Personal Contract Hire for over a year now, it’s not a purchase, just a hire and simply hand the car back at the end of the contract.

I was declared bankrupt in November last month.

VWFS/Audi have posted me a Section 87 default today saying due to going bankrupt I have breached the agreement, therefore as of next weekend - 9th Jan I will of repudiated the agreement.

I fully expected this but they are saying I owe them the remaining rentals which come to £4294.55. Will this be included in my bankruptcy? As it was taken out Sept 2019.

Also, the agreement will terminate 9th Jan, when should I expect them to collect the car?

TIA

Morfx

Have you read though the terms and conditions of the contract? 

smithyyy88

Yes, by going bankrupt I have breached the contract enabling them to terminate it, therefore the remaining rentals will be due to be paid.

But seeing as the agreement was taken out September 2019, would the payment which I obviously can’t afford come under my bankruptcy?

I asked if I could keep the car and keep up the payments (I’ve never missed a payment), but Audi declined.

flipflopflo

As far as I can remember as it was a debt that was secured it wouldn't be in your BR but as soon as it becomes unsecured as it has now it is included in your BR.

 Let your OR know that this debt needs to be added to your BR. Just email/send a letter to the company with your OR' details and BR details.

JCS1

A car hire (not hire purchase) would not be considered a secured debt.

Just make sure you do not sign anything when the car is collected, you do not want to create a new debt.

Fighter1986

As the balance they claim you will owe once they reposess the car will be an unsecured balance, in can be included in your bankruptcy. As the agreement the debt falls under predates the date of your bankruptcy, the debt will be included in your bankruptcy. 

As above, no signatures, no new agreements. 

smithyyy88

Thanks all, OR confirmed today it will form as part of my bankruptcy!