www.iva.co.uk

Hi, can somebody tell me, if i'm made bankrupt and have a hire purchase agreement where i've paid over a third - can the finance company still repossess the car without a court order?

It is possible,but I would read your agreement to see what it says on that.

You may be allowed to keep it as long as you keep up the payments on there.

Thanks for your reply, i've read the terms and conditions and it says that they need a court order if i've paid over a third - but somebody recently told me that if i'm bankrupt they dont need a court order

Hi,

I don't know that I'm afraid.

Hopefully one of the experts will be along to advise further.

It is a default of the agreement so you lose your rights. The finance company can repossess the vehicle but normally will not if the payments are up to date. You may need to get a guarantor or have someone take over the finance but it does depend a lot on the individual HP company.

And the HP company may be happy to allow you to continue making payments, however this will also need the sanction of the Trustee.