Sofa worries !!

Flora_McDora · 6 November 2017 at 3:54PM

About 8 mths ago I bought a sofa from a Next and arranged to pay for it over 2yrs. I have made every payment on time but now find that i might have to declare myself bankrupt due to my business collapsing. Will I be allowed to keep the sofa (it cost around £2K ) or will the finance company demand it back? Will they want to inspect it (if not i have two dogs and can always say they have chewed it abit!!)
Please help - rather worried

Potbellypig · 6 November 2017 at 9:46PM

You'll be okay, I'm sure.

I've never heard of a sofa company wanting a sofa back from a bankrutee. If for some reason they did, or even could, the dogs might require a bit more fun...

cancatsdance · 9 November 2017 at 9:56PM

They will just chase the money you owe if you stop paying and once you go BR then they will stop. the IS wont make you sell it either.

debt_doctor · 9 November 2017 at 11:10PM

Hi,
Have a look at the credit agreement.
If it says Hire Purchase or Conditional sale then the sofa belongs to the finance co - still doesn't mean they will want it though.

If it says Fixed Sum Loan agreement or Personal Loan then the sofa has always been yours and will remain so.

These things are usually the latter.

DD

KellyMM · 12 November 2017 at 11:06AM

Yes, is the sofa hired from Next or did they just lend you the money as credit? If the latter the sofa is yours, the debt will go into your BR like everything else and the OR won't be interested in your furniture. If the former, perhaps they will want it back. They may have a scheme whereby they can auction it off for a few pennies. Unlikely but who knows.

Incidentally, how much do you think you could get for it if you sold it second hand? If you 'downgraded' to a cheaper sofa you could put the money towards bankruptcy fee or living costs without the OR minding. Obviously you can only do this is the sofa is not hired.

Sofa worries !!

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