Topic: car on hp

[johnno69]

can some give us some advice we are just starting the benkruptcy process. were due to goto court on 27th this month. we have 2 cars both on finance with the same company 1 car is 2 yrs into a 3 yr agreemnet the other (2) is 18mth into 5yr agreemnet. i know we will loose car 2 can the finance company tak car 1 as well. And should we tell people who call etc that we are going bankrupt?

[AshleyPark]

Hi Johnno69
 
It may be that the OR deem it better to give up the newer car rather than the older car which may have less value.
 
You can advise the credit companies and debt collectors that you are about to go bankrupt but i doubt that this will stop the calls. They may make a note on your file but until you are declared bankrupt i would be surprised if you were taken out of their dialling system.
 
Lee

[johnno69]

cheers lee.
 
Spoke to finance company this morning. They sat t&c's state that bankcruptcy or iva is breach. So will need to collect both cars or the OR says we can afford to pay monthly instalments on it . They may want to rerpose it before, but they are willing to make arrangmnets to collect older one. Is this correct as in they can reposes the older car even though ive paid 23 mths of 37 agreemnet? Or are they just trying bully boy tacktics?

[Sovereign]

Hi Johnno,


The finance company can collect both cars if they wish but I have found in practice that they would prefer to receive the monthly repayments, particularly on the older car! Speak to someone higher up the food chain at the finance company before you go BR. You can put HP payments in your income and expenditure statement and try and persuade the OR to accept them. All should be fine for the older car, I'm sure, if you play it right.


However, before you go BR, you might want to tell your insurers as well since they have similar t&c's regarding BR and you could be uninsured after your Court appearance!!


Best of luck.


Steve

[johnno69]

cheers will do .

[Steven Jackson]

Hello Johnno69
 
Did you have any more luck speaking to the finance company? I agree with Sovereign.  In my experience a car finance company would prefer you to continue paying the finance even though you have declared bankruptcy. I have worked with a number of people who have been able to do just that.
 
After all, the alternative is that you return the cars and any shortfall is written off in your bankruptcy which will leave the finance company well out of pocket. It is highly likely that the person you spoke to did not understand this.