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I have a HP car where the value is probably worth the finance oweing (or not far off).

It was on a 36month agreement with a balloon payment in month 37 or give the car back option.

I am now at month 27, and declaring BR at the end of the month.

The car is probably worth about £3-4000 but like I said there is very little to no equity in it. Would the same theory as a house work here where I keep be allowed to keep paying the HP and give the car back at the end of the 36 months, or would the OR give the car back to Peugeot straight away?

I am a Night manager for Sainsbury's and need the car to get to/from work, and my husband then uses it during the day for work.

The HP on it is £192 a month, and this is our only car at the moment.

It will depend more upon the opinion of the HP company, rather than the OR - but if you can arrange a refinance deal, then the OR will probably allow you to keep making the payments.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

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Thanks Melanie, would the OR allow a payment such as £192 in the monthly expenditure allowable before an IPO is calculated or would this have to come from our surplus income?

I am sure it will be allowed as part of the IPO calculation, as this is your only car and is essential for transport to and from work.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp