can i put my hp car debt into an iva

[daniel]

can i put my hp car debt into an iva and if i have sold the car can they take it back from that person !!!

[MelanieGiles]

Hi Daniel

I assume that you no longer have the car, but wonder how you managed to sell it with hire purchase in place. Was it a private sale to a buyer who did not perform a HPI check? If this is the case, this was not your car to sell and my feeling is that, if it was sold without the permission of the finance company, then they would have the right to recover the vehicle. But you would need to check the exact wording of your hire-purchase agreement to be sure. Perhaps a legal opinion also ought to be sought as well. Are there any lawyers out there?

From a claim point of view, the balance owing to the finance company should be included within the IVA.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.
View my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[daniel]

i have sold it to a friend !!!
if i put the car hp debt into an iva can the finance company reposses the car off the new owner?

[MelanieGiles]

I think it is most likely that they can, but you really need proper legal advice on this point. And you also cannot leave a debt out of an IVA and carry on paying it, as this is preferring that one creditor over the others.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.
View my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[jamesfalla]

In my experiance, if are not allowed to sell a car which is on HP without the express agreement of the HP company. If you do so, then I understand the HP company are within their rights to repossess the car where ever it is.

I have heard of instances where HP companies will allow the private sale of a car as long as the money from the sale goes to them. In there instances there is often still a shortfall on the money owed but this could then be treated as unsecurred and included in an IVA. What did you do with the money you received from your friend for the car?

James Falla

Expert in IVA, Bankruptcy and informal Debt Management solutions, with extensive experience of solving personal debt problems over the past 10 years. I am regularly featured on BBC News, Finance Programs and Radio.

Visit my blog at: http://jamesfalla.blogs.iva.co.uk

[Storm]

As already stated the vehicle is the property of the finance company until the final payment is made.

The vehicle will be recovered from whoever currently has it and you will be liable for the shortfall when it is sold at auction.

In cases such as this quite often a police complaint is made by the purchaser as they will be out of pocket however in this case it is a friend so they may not persue the matter.

Your friend may have problems insuring the vehicle and gaining an MOT (These systems are now linked to the DVLA)and certainly won't be able to sell the vehicle (except by private sale) until the HPI record is removed.