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Hi. With a DRO, you cannot have a car if it is worth over £1000.
Originally posted by Twubble
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Or to put it another way, if you own a car worth over £1000 you cannot have a DRO
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hi there.
im currently looking into applying for a DRO. My first question is, according to my contract for my hp car, if im subject to bankruptcy or iva (no mention of DRO) i can lose the car but still be expected to pay. I need my car for work.
Ive never missed a payment to them and i can afford the monthly payments for the car without issue.
Do i have to include the hp car in the dro given the contract doesnt explicitly state a DRO. I appreciate that a DRO is a type of bankruptcy but their wording is not that specific.
TIA
Originally posted by Damo66a
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A car on HP is not owned by you - it is owned by the finance company. Provided your agreement continues to run through the whole 12-month moratorium period that particular qualifying criterion (car value<£1k) isn't breached.
You then need to consider whether it needs to be included as a debt. It will show on your credit report. If it's in arrears it must be included. If your payments are up to date it need not, but the DRO Unit will need to be informed because they will see it on your credit report.
Then the question arises whether you can include the monthly payment as a legitimate expenditure item. If the car value is less than 1k (unlikely but not impossible), it can be. If the car value is more than 1k (likely), it cannot.
That may mean that you breach the £50 per month surplus income rule. If you are still under £50 per month surplus income then it may be possible to apply for a DRO and get a third party to fund your HP.
Hope you weren't expecting a simple answer. This takes up several pages on the Intermediary Guidance.