DRO question PCP Hire

Redfoo1900

Hi everyone, need some advice please. I am looking to get a DRO but we have a car on PCP hire in my name. My partner actually pays for the car and the monthly payments are made from her separate bank account but obviously the finance is in my name. Can you advise how this would be affected with a DRO as I am clueless with this?

fatbelly

It can be excluded provided it is up to date and payments come from a third party

https://www.gov.uk/guidance/debt-relief-orders-guidance-for-debt-advisers#hire-purchase-agreements

When is the balloon payment due?

Redfoo1900

it is due November 2027 when we will be handing back

Redfoo1900

Hi I am thinking of getting a DRO and have done an SOA. Can someone let me know if this ok. I have a car on PCP finance in my name, however my wife pays the monthly payments.

[font=courier new][b]Statement of Affairs and Personal Balance Sheet[/b][b]

Monthly Income Details[/b]
Monthly income after tax................ 2550
Partners monthly income after tax....... 1000
Benefits................................ 170
Other income............................ 0[b]
Total monthly income.................... 3720[/b][b]

Monthly Expense Details[/b]
Mortgage................................ 0
Secured/HP loan repayments.............. 166
Rent.................................... 1000
Management charge (leasehold property).. 0
Council tax............................. 180
Electricity............................. 130
Gas..................................... 120
Oil..................................... 0
Water rates............................. 90
Telephone (land line)................... 0
Mobile phone............................ 70
TV Licence.............................. 15
Satellite/Cable TV...................... 15
Internet Services....................... 30
Groceries etc. ......................... 650
Clothing................................ 120
Petrol/diesel........................... 50
Road tax................................ 18
Car Insurance........................... 50
Car maintenance (including MOT)......... 50
Car parking............................. 0
Other travel............................ 380
Childcare/nursery....................... 0
Other child related expenses............ 150
Medical (prescriptions, dentist etc).... 35
Pet insurance/vet bills................. 50
Buildings insurance..................... 0
Contents insurance...................... 20
Life assurance ......................... 50
Other insurance......................... 0
Presents (birthday, christmas etc)...... 30
Haircuts................................ 20
Entertainment........................... 30
Holiday................................. 0
Emergency fund.......................... 50
Pension................................. 50
Professional fees....................... 30[b]
Total monthly expenses.................. 3649[/b]
[b]

Assets[/b]
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0[b]
Total Assets............................ 0[/b]
[b]

Secured & HP Debts[/b]
Description....................Debt......Monthly...APR
Mortgage...................... 0........(0)........0
Hire Purchase (HP) debt ...... 9000.....(166)......0[b]
Total secured & HP debts...... 9000......-.........- [/b]

[b]Unsecured Debts[/b]
Description....................Debt......Monthly...APR
vanquis........................1572......50........0
virgin.........................3593......75........0
asda...........................1050......50........0
argos..........................807.......30........0
creation ......................680.......28........0
next...........................240.......20........0
tesco .........................17000.....166.......0
paypal.........................910.......50........0[b]
Total unsecured debts..........25852.....469.......- [/b]

[b]
Monthly Budget Summary[/b]
Total monthly income.................... 3,720
Expenses (including HP & secured debts). 3,649
Available for debt repayments........... 71
Monthly UNsecured debt repayments....... 469[b]
Amount short for making debt repayments. -398[/b]

[b]Personal Balance Sheet Summary[/b]
Total assets (things you own)........... 0
Total HP & Secured debt................. -9,000
Total Unsecured debt.................... -25,852[b]
Net Assets.............................. -34,852[/b]

[i]Created using the SOA calculator at www.LemonFool.co.uk.
Reproduced on Moneysavingexpert with permission, using other browser.[/i][/font]

fatbelly

I have asked if this can be merged with your other thread as it is the same thing and I linked to the rules there.

I think it is close enough for your intermediary to play with and see if they can make you qualify.

The final soa will be your inc/exp only and the complete removal of the hp payment may make you the wrong side of the line.

It is worthwhile seeing if you can get there though, as it would be an efficient way of dealing with 25k of debt

MSE_ForumTeam5

We've merged the threads as per @fatbelly's suggestion

Redfoo1900

When I speak to them, do I give them the percentage of what I contribute to the household bills so if it’s a 60/40 split for example

fatbelly

The split is proportionate to your incomes so give them the whole picture and let them work through it. You should tske the larger part of what looks like bigger than 60/40 to me