I'm struggling - please help

kimwp

Shadyocuk said:

Unless I am missing something the OP cant afford to keep the car.

Their only income is £891 the other £800 is not income it is money their father is giving them.
Rent                        £(575)
Council Tax             £  (25)
Gas                         £  (25)
Elec                         £  (25)
Water                       £  (14)

that only leaves           £227 a month after priority payments to cover everything else 
after the medical        £(130)  they only have
                                     £ 97  a month left for food , where does the money come from to run any car ????   

I agree. @zellyrs, the numbers in your SOA don't add up at the moment. You say you are making the minimums with help from your dad, but if he is giving you £800 a month, then your income is not enough to cover your expenses, let alone any debt minimums. So you need to change your living circumstances, as well as addressing the debt.

Or do you mean he gives you more, on top of the he £800, towards your debts?

itsthelittlethings

Are you counting your housing element in your benefits?

ManyWays

Zellyrs said:

Okay, yeah I thought it was something along those lines. I will have a look at my PCP agreement tomorrow to see wording of it. 

The wording of the PCP agreement is a red herring.

The current guidelines on car finance agreements in a DRO is as follows (https://www.gov.uk/guidance/debt-relief-orders-guidance-for-debt-advisers):

"Goods subject to an ongoing hire purchase (HP) agreement should not be treated as an asset, as they do not belong to the debtor until all the payments under the HP agreement have been paid."

BUT the repayments have to be paid by a third party (your dad?) OR they have to be an allowable expense

So what is an allowable expense?



I think you will find it extremely difficult to get a car valued at 10k acceptable as an allowable expense. 

AND even if you did, when the PCP ends, you will have to hand back the car as you will not be able to get finance for the balloon payment or another car finance at anything except an extortionate rate with a DRO on your credit record.

Or, indeed, with a pile of defaults on your credit record if you do not opt for a DRO.

Ways round this? Would your father be prepared to take out a loan for you? You can hand the current car back, any shortfall can go into the DMP. if your father has the finance in his name and is paying it, most of the problems are solves 9its pretty likely you could get the car running costs treated as allowable expenses)

You have to find a solution to the car after the PCP ends problem.

Zellyrs

Alright thanks everyone for your help and advise. Thread can be closed.