DRO, HP and parking tickets question! Please help :)

bosr

Hi everyone, 

wondering if anyone can help. I’ve read through tonnes of threads and seems like you guys are the experts!

so, I have around 17.5k in unsecured non priority debts and my mum has been helping me with payments as my cards all have high interest rates now the 0% periods have ended. I am currently on unpaid maternity and I simply cannot afford to keep up already unaffordable payments. Yes hindsight is a wonderful thing I know and I wish it hadn’t got to this stage. I am not currently in any arrears but will be as of end of this month. 

Anyway.. 

I have a car on HP. Parker’s values it at £4,200 so I know this is not allowed on DRO. The finance ends in September 2024. I got a settlement figure today for £2360. My daughter’s dad covers the monthly payments. Now, I need some clarity over my options:
1 - sell the car, clear the balance of the existing agreement and purchase a new car for less than £2000
2 - hand the car back via voluntary termination (but be without money for a new vehicle)
3 - get the car transferred into a family members name, they take over the finance agreement and own it at the end but I can still use the vehicle (I only need the vehicle for getting my daughter to her hospital appointments as I will not be driving to work etc whilst on unpaid mat leave)

I spoke with stepchange who agreed with above options existing and said that option 1 would be best bet because I would have funds to purchase a new vehicle but that 3 was also a good option as I’m not currently in arrears call the finance company and ask if this can be done as it should cause no issue. She also said I could sell it and purchase a car for £2k, have under 2k equity for savings and use £90 to pay for my DRO then put the outstanding amount in DRO. As far as I am aware this is pretty illegal as the vehicle is owned by the finance company not me ? I also thought the 2k in assets was Car and anything else. Eg all had to fall within £2k collectively. She sounded young so maybe new but I don’t want to sound rude. 

So, I called the finance company (just stated maternity as reason, didn’t mention DRO) they have said option 3 is impossible they won’t transfer under any circumstance and they gave me the settlement figure.

 I’ve started to look at selling straight away, gone through my paperwork and realised I never sent my green slip off! I got the car in 2021, it’s insured and taxed and always has been. The tax I’ve renewed automatically and set it up initially from the green slip which has all the info that you need to set tax up on day 1. 

Bare with me apologies and thanks if you’ve got to this stage…
I called my sister explained everything and she said you want to be careful dvla don’t find out … I’m confused because I have taxed it, I also got a speeding fine in aug 21 and it was sent to me at my address so dvla deffo have my correct info. The only thing I’ve not had was a letter through for a PCN I received in town centre and never paid. Not had anything from it and it was probs a year ago now. Could there be a huge fine waiting for me? What if it comes through after DRO is complete and it’s at an accelerated stage?

should I contact dvla explain my mistake and request for the log book and wait to see if a fine comes because I can then include it in the DRO ? Can the dvla fine me ?

I need the log book in order to sell. Feel like I’ve opened Pandora’s box! Any advice is so greatly appreciated . I feel so stupid and never realised until now and worried it will ruin everything 

fatbelly

That sounds like a long complicated story ( I did read it) but you are almost correct on everything and so was the stepchange adviser.

Please note stepchange don't do DROs so you will have to contact CAB or Money Wellness in due course. I'd start with the latter

The only thing I noticed that was not quite right is that DROs have two asset exemptions: 2k for a vehicle and 2k for everything else including savings

bosr

Very long winded but wanted it to make sense! (Hope it did?!)
I’m really grateful for your time and reply. I’ll be in touch with money wellness in due course as I really want to proceed asap just worried about a potential ticket having got to court stage but I guess I’ll have to deal with that if it comes. 

Thanks again ☺️

fatbelly

Put it in the dro 

bosr

So would you perhaps recommend contacting dvla for logbook,  selling car and settling then paying for a new one with equity, and waiting a couple of months to see if any repercussions following log book eg old fine? 

Rather than rushing to get a DRO done asap 

fatbelly

Exactly.

And find out what stage the PCN is.

The only sort of fine that wouldn't go in is a magistrates court criminal fine

Lots of info here

https://www.gov.uk/guidance/debt-relief-orders-guidance-for-debt-advisers

JCS1

Have you paid anything for the car or has it all been paid by your daughter's father?

As if you have not paid anything there is an argument it is not your asset.

fatbelly

The agreement is in the op's name, is on her credit report (which the Insolvency Service do check) and she becomes the legal owner of the car in Sept 2024, (and therefore the op's asset) regardless of who is paying the finance

Op has already checked about transferring this into another name and received a definite no.

JCS1

but it would not be considered an asset in Bankruptcy as the OP not paid for it?