Bankrupt and car finance...wont take the car back

fiveyearplan

maxmycardagain wrote: »

find somewhere to store it off-road, send the hp company a letter with their portion of the V5 stating , where it is and it can be collected anytime and that you have paid 2 weeks storage, after that the storage will cost them £50 per week and the storage company has their details to invoice, unpaid storage will result in the vehicle being sold to recoup storage costs

i guarantee the car will be gone damn quick

If you send that letter be sure it is registered post so you have proof they received it.

jenryan75

Ok Another update!!
When i came home from work had a message from CAB asking me to ring them which i did, and he wants to see all the paperwork for the car, in the meantime he told me to ring Welcome again and ask them to take the car. I did this and tody they decided that we have paid a third of the car as they worked the figures out today so they cannot take the car without a court order. I asked them if they were going to do that and she said sometimes we do but probably not, so i then asked if the car was ours then and she said yes but..... we owe £8979 but they will sell us the car for £6876 as a personal loan, i explained the cost of the car finance is including in the bankruptcy, she said its not. So i rang the official receiver and they said it is ioncluded and we owe Welcome nothing now, so i again rang Welcome and she said if thats the case she thinks the car is ours as they cannot take it back, so she wnted me to get the official receiver to call her which they are going to do tomorrow. So now i am totally confused, no idea what is happening with this blinkin car Would be ace if it was ours but knowing our run of luck this wont be the case lol.

rog2

jenryan75 wrote: »

so i then asked if the car was ours then and she said yes but..... so i again rang Welcome and she said if thats the case she thinks the car is ours as they cannot take it back, so she wnted me to get the official receiver to call her which they are going to do tomorrow. So now i am totally confused, no idea what is happening with this blinkin car Would be ace if it was ours but knowing our run of luck this wont be the case lol.

Some nice thoughts in there, jr, but I wouldn't do anything until you have spoken again to CAB and, probably, the OR.
I think that Welcome (who are well known on this board) are behaving absolutely disgracefully - knowing that you are bankrupt, they are offering you a 'loan' of almost £7k, in order to gain 'preferential' status for themselves.
It just beggars belief.

LuciferTDark

I'd be tempted to write them a letter telling them I'm not paying them any more & they have 28 days from receipt of the letter to collect the car or it gets crushed & delivered at their expense to head office.

jenryan75

we havnt paid anything since Feb 07 on the car, but Welcome have not terminated the agreement and said as we have paid over a third they cannot terminate without a court order, which she said they wont be likely to do, but once i told her the balance is included in the bankruptcy she kinda changed her mind, about us owing money she kept saying it could not be included in the bankruptcy so yes we own the car but we owe them hence the loan offer lol she even said we would get a better rate silly woman hes bnkrupt surely that would mean a worse rate!!!! has anyone been through this?

maxmycardagain

please read you hp agreement to see if you have a right to hand the goods back after any set period usually once half the total initial cost has been paid ( inc hp/admin/car price)

i had to simply take mine to a car auction lovally who had an agreement with black horse to accept "handbacks"

on the other hand youve had the use of it for 12 months with no cost!

Brassneck

jenryan75 wrote: »

we havnt paid anything since Feb 07 on the car, but Welcome have not terminated the agreement and said as we have paid over a third they cannot terminate without a court order, which she said they wont be likely to do, but once i told her the balance is included in the bankruptcy she kinda changed her mind, about us owing money she kept saying it could not be included in the bankruptcy so yes we own the car but we owe them hence the loan offer lol she even said we would get a better rate silly woman hes bnkrupt surely that would mean a worse rate!!!! has anyone been through this?

Although not EXACTLY the same, but similar.
When i went pop in 2000 i had a car from Ford Credit and owed 4k on it. It was used by my mate, and ended up getting hit by a joyrider who wrote it off and my mates insurance didnt cover it. Anyway i got the wrote off car back in my possession.

However, forgetting the fact it was smashed to bits for a minute, i included the debt into my BR. When i was asked what happened to the car i explained, and the OR said ok fare enough, keep it. I kid you not. As far as i know its back on the road cuz i repaired it an sold it on.
Ford didnt chase it as it was named in proceedings, OR wasnt interested either.

So you never know.

Just a pointer here, if you just keep using it, Welcome cannot contact you regarding it if its named in the BR as thats illegal and you just refer them back to OR.

I would just keep using it for now and not worry about it.

Oh, another thing. If the debt is named in BR, then the car theoretically is an asset that can be sold by OR. However, if its deemed you need it as a tool for your business or transport needs, you can keep it.

fiveyearplan

I'm soooo confused! I know cars are a grey area but this is a bit ridiculous. I have made 52 out of 60 payments and owe £2,000. I haven't made a payment since June 2007. I assumed the car would go in the BR and it would be sold because it is over £2,000. Then after reading a bit on here I thought that the car would go back to finance company because they are the legal owner of the car. Now after reading the few posts above I can't really take anything else on board. I suppose I'll keep on driving the car until BR day and see what the OR has to say.

Brassneck

fiveyearplan wrote: »

I'm soooo confused! I know cars are a grey area but this is a bit ridiculous. I have made 52 out of 60 payments and owe £2,000. I haven't made a payment since June 2007. I assumed the car would go in the BR and it would be sold because it is over £2,000. Then after reading a bit on here I thought that the car would go back to finance company because they are the legal owner of the car. Now after reading the few posts above I can't really take anything else on board. I suppose I'll keep on driving the car until BR day and see what the OR has to say.

Ok, lets deal with some confusion issues first:
Forget your BR for a moment, lets deal with straight finance issue.
You can, legally without prejudice, hand the car back as long as its HP and not a personal loan on it, as long as you have paid OVER HALF the amount on the account. As you have paid 52 of 60 that qualifies. So you can LEGALLY take the car to them and as long as you terminate the agreement IN WRITING, park it outside their offices and walk away, remembering to send V5 to DVLA.
There is NO penalties, and no detrimental effects as its a legal right you have.

NOTE: NOTE: NOTE: Lots of companies, one in particular with a black Horse as an emblem but i shant name........have in the past been known to send out an invoice for money owed AFTER this legal right has been put into force. The letters have continued until it is pointed out to them their mistake and the legal rights allowed under the credit consumer act, which they can read on the back of their own agreement. Then they have been known to apologise and admit it was, and i quote "a mistake due to a computer generated invoice". in other words trying it on. makes me wonder how many people just pay up and shut up though.
The above has happened to me at least 5 times.

Thats the legal side of finance on a car. If its a personal loan its different, and i have no direct experience of it.

But.........................and its your choice here..........i reckon that if you, for example, named the debt into BR, and yet the car was..........erm.......broken for instance, new engine needed or whatever, for the remaining amount owing on the account i dont think welcome or OR will be bothered about it. Unless its a Porsche obviously. 52 out of 60 payments means they have easily had their original stake back, or close to it, so it will be a dead loss to them to pursue it if its a BR issue.
So the OR has the final say. If its an asset they can take it, unless its a tool for your job or a living necessity. or broken. The OR doesnt touch broken items.

So my thinking (and experiences) here would lead me to think thus:

If the amount outstanding on the HP is say 2 grand, but the car is worth 500 quid in its current state, whats the point of taking it? Ok it may be 500 quid into your BR account, but if its broken it has to be fixed first as the OR cannot take broken, damaged or dangerous items: (same ruling now applies to charity shops who wont take electrical goods, safety reasons).
So if the cars broke, and worth 500 quid, what will it cost to have it moved, fixed and sold?
Not worth the grief is it.

NOTE: NOTE: NOTE:

All this is also based on the presumption that Welcome WANT to be put on your debtors list, which for the amount owing i suspect they wont bother, meaning the whole issue would be a pain to administer. The debtors list has a pecking order, and car finance ranks just above "big issue sellers" in ranking of importance on who gets what.

jenryan75

Right here is where i am up to today, OR have confirmed the finance is part of the bankruptcy and they have informed welcome of this. So Welcome are now saying the car is ours. So i checked if this was the case with OR and she agreed yes the car is ours but is now an assest, she asked about year and condition of car i told the TRUTH and its not currently working she said they will come and collect and scrap the car then. So i then rang back and me being me was very cheeky, i aksed OR if there was any chance we could keep the car. she got back to me and said as the Bankruptcy is my hubbys and car is in hubbys name i could make an offer to OR for me to purchase the car, i asked how much and she said just a gesture, such as £20. She is going to triple check this as she checked with her manager and this is what they told her we could do, but she just wants to check agin and if so that is what we will be doing. HOPEFULLY!!