Hire Purchase Query

csv1978 · 24 July 2013 at 3:58PM

Hi guys,

My situation is that following repossession of my property with significant shortfall I am going to have to petition for my own bankruptcy in the not too distant future as I have no realistic way of paying that in addition to my other creditors back.

I have my own personal car which I bought outright and it is work about £3,000 - £3,500 which I am aware is over the £1,000 amount allowed by the OR so my mother has agreed to pay the difference once I am bankrupt so that I can keep my current vehicle.

The main issue is that in March 2011 I purchased a car on behalf of a friend through Ford Finance on a 4 year agreement. So effectively, I was the guarantor so they could have a car. I can evidence through my bank statements that this person has been paying the HP payments by transferring the payments into my account. The agreement with Ford has about 18 months left to run.

Therefore, my question is if I explain to Ford my situation and that the payments are effectively being paid by someone else will they let the arrangement continue? Also, will the OR allow the payments to continue given that I am not personally funding them out of my own income?

Thanks

alastairq · 24 July 2013 at 4:12PM

Hi...only Ford Finance can answer their part of your question. They may permit a change of payee....depends on their T&Cs.

However, I would point out that...there is no rush for you to petition for BR.

Once you have made the decision about how to deal with your debt situation, that is the most important step.

Even if your creditors pursue you through the Courts, with no assets [like, property] it matters not, how far down the line your BR petition occurs..the BR trumps them all.

So, if Ford are not happy, then continue as you are..simply petition BR a year or so hence?

This would also have a positive effect value of your current car, too? [have you 'valued' your own car based upon the likes of Parkers, for auction..ie the lowest value listed?]

When you do eventually petition BR, don't forget to be thoroughly honest to the point of pain, about your car's condition...therefore, value.

csv1978 · 24 July 2013 at 4:24PM

Thank you for the reply,

I will definitely speak to Ford to see what they say on the issue and if they do have a problem then I will wait like you say.

I valued my car on Parkers and based it on the "poor" value because my mileage is slightly above average and there is some minor cosmetic paintwork damage that I would estimate would cost a few hundred quid to sort out.

I just wish there was a way to put questions to the Official Receiver's office before petitioning to put some clarification on matters rather than going bankrupt and being at the slight mercy of the OR

alastairq · 24 July 2013 at 4:36PM

I just wish there was a way to put questions to the Official Receiver's office before petitioning to put some clarification on matters rather than going bankrupt and being at the slight mercy of the OR

Aside from official FAQs, there is also this particular forum..full of knowledge and experience..as well as support.....feel free to ask anything.

Hire Purchase Query

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