www.iva.co.uk

Hi everyone,
I would like to know if anyone has entered into BR with a car on HP?
I have read that they can make you sell the car if its value is above £2500 and get a cheaper one then pay the court the rest. Or pay the court the dividend to keep it. But if it is on HP then I do not own it, so cannot sell it. I work shifts 24 miles away with no chance of public transport in a village. My agreement with GE money states that;
We may terminate this agreement after giving you written notice required by law if; you die, become bankrupt or make a voluntary arrangement with other people you owe money to.
I hope the 'may' means they might not take it back and I would still owe them £1300 if they did anyway, would this be eaten up by the BR?
Will the court/OR see me without a vehicle for work or can I transfer the HP to my wife and include this under household expenditure?
Would this be seen as transferring an asset and not allowed.
I do not know if I dare ring GE money to ask some questions or not.
Please help my head is hurting !

Speak to GE Money before going BR and explain what you intend to do. Tell them the car is needed for work and you will continue to make the payments as normal. They should be able to put your mind at rest as they do not want the car back. You could offer that your wife stands as guarantor for additional security but this should prove unnecessary.

The OR will not have a problem with the vehicle or the monthly payments so you should be fine.

My car was on HP and had that clause in the agreement, and yes, they came and collected it, but I don't think I would have been allowed by the OR to keep it anyway [8)]

Depends on value of the car and whether the HP company is willing to allow you to continue plus of course the Official Receiver being in agreement.

I have just got off the phone to GE money bankruptcy dep't and because I still owe them £6273 for the car and the market value is £3600 then they say the OR wont make me give it back as they cannot make any money back on it. GE say they wouldnt take it off me as long as I keep up the repayments.
I think my mind is almost made up now.

That's really good then Neil.

Looks like BR could be the right solution for you then.

You can find the forms, and any other information, on this site:

https://www.insolvencydirect.gov.uk/isolv/

Let us know how you get on.

Glad you are virtualy sorted.

Thanks for the support, its all been a bit daunting to say the least. Just 2 weeks ago I was ignoring my increasing debt, hiding it all from my wife and making myself feel ill. Since coming to the forum I have had nothing but the best advise, entered into a DMP with VB and had the courage to face up to my problems.
I think the worst is over and have still got a little way to go yet, but feel confident knowing I have got the forum community to help me through it all (got a bit of a lump in my throat now lol).
Thanks again. x

I'm glad we have been able to help you Neil.

Keep posting to let us know how you are getting on, and to keep asking questions.

Neil, glad things are sorting out for you. To be able to discuss problems freely is such a help and thats why this forum is so fab [:)]