Todays DRO question

maxmycardagain

If a car is on finance, and worth (say) £8000, with a balance outstanding of £4000 would it become liable to being seized  if someone went BR or applied for a DRO? and...........

are the same rules applied if it has an outstanding logbook loan on it rather than HP?

JCS1

logbook loans are usually secured on the vehicle.

With HP, if there is no equity the OR sends a letter of non-adopt and it is then down to the HP Company what to do.

if there is equity, the OR can pay off the HP, sell the vehicle (and if deemed essential provide £1k for a replacement) and then take the surplus into the estate.

Think you could not do a DRO in those circumstances, as not allowed a car of that value.

maxmycardagain

JCS1 said:

logbook loans are usually secured on the vehicle.

With HP, if there is no equity the OR sends a letter of non-adopt and it is then down to the HP Company what to do.

if there is equity, the OR can pay off the HP, sell the vehicle (and if deemed essential provide £1k for a replacement) and then take the surplus into the estate.

Think you could not do a DRO in those circumstances, as not allowed a car of that value.

Seems i got it wrong, the guys WIFE paid (or is paying) for the car, she was named on the invoice, he is the registered V5 keeper, debt advice said if he has no right to SELL the vehicle (i.e. its hers, not his) it isnt classed as his asset

maxmycardagain

also, he has been told as his debts are his alone, and they have zero financial connection the Insolvency wont ask for her bank account details...