car on h.p and bankcruptcy

[imstillhere]

my daughter has a car that is on H.P she has paid 2yrs 5 mts on it and it is over 4 yrs,now she is looking into going bankrupt can some 1 plz tell us if it is possible that the offical reciever will take the car from her because it is on h.p or would she be allowed to keep it
hope this is clear to you
plz help

[Ethel]

All and any assets may be taken. The HP is a debt that the OR will take into account.

She will not be allowed to keep the car and have the debt wiped out, unless she has other assets to clear her debts.

[Oneeyedvic]

If she goes bankrupt the HP agreement will certainly have a condition that this will make her in breach of contract and they may well exercise their right to take the vehicle back.

If there is any equity in the vehicle, the OR may well have it paid off so that the vehicle may be sold and the equity can be used towards the estate.

[boro1986]

How has your daughter got herself into this financial mess thats what all people seem to do declare themselves bankcrupt!!!!

[jennyp]

boro1986 Its not right to judge people until you know their circumstances - anyone can drop in a deep hole, illness, accident, break up of marriage, loss of job - etc. There was a guy on TV the other night who had paid PI, but the insurance company wouldn't pay, because he had the wrong illness, even though his doctor had said he wouldn't get better!!! People ask for advise, not a lecture -

[boro1986]

Well Jenny it just seems a lot of people are living beyond their means and when they realise they cannot pay they think ah yeah ill declare myself bankcrupt!!!

[imstillhere]

in reply to boro:my daughter was raped and from then on to cut a very long story short she fell behind on her payments i dont think its your right to judge people like you have because you dont know what curcamstansies people are in

[themas]

The car is on HP so it is owned by the finance company & not by your daughter. The OR cannot take it because it is not hers. But the OR will want to know whether the car is needed for work. If it is, then - so far as the OR is concerned - she can probably keep it, and the payments would probably be allowed as part of her essential expenditure. The HP agreement may well contain a statement that the car can be forfeited in event of bankruptcy, but if the payments are up to date and can continue, the finance co. may well decide not to repossess it.

I don't follow Vic's second para. The OR can't provide money to pay off the HP, or force the bankrupt to do so.

[imstillhere]

thanks for your reply that seems a fair answer not like boros reply sometimes i dont know why people are so nasty

[Oneeyedvic]

http://www.insolvency.gov.uk/freedomofinformat ion/technical/techmanvol1/Ch25-36/Chapter31/pa rt2/part2/part_2.htm

"A vehicle may be subject to a simple rental agreement or an agreement under which the ownership of the vehicle is intended to pass to the insolvent at a specific date or when certain conditions have been met. Subject to any express terms in the agreement (see paragraph 31.2.10) the rights of the insolvent under the agreement, both to exercise rights over the vehicle (to use it) and acquire ownership will become exercisable by a liquidator or pass to a trustee in bankruptcy. Any such rights are referred to hereafter as the rights of the insolvent. The official receiver should establish the nature of the rights of the insolvent in order to deal with the vehicle in an appropriate way"

"Where an insolvent owns a motor vehicle or may acquire ownership through the completion of an agreement the official receiver, when acting as liquidator or trustee, should consider whether there is any value in the vehicle for the benefit of the estate. If the vehicle is subject to a hire purchase, conditional sale or lease-purchase agreement, the amount required to settle the agreement must be taken into account when calculating the likely benefit for the estate."

[Oneeyedvic]

"31.2.15 Disposal of vehicle subject to finance agreements

Where a vehicle is subject to a hire purchase, conditional sale or lease-purchase agreement the official receiver should contact the hiring owner, initially by telephone, followed up in writing. He/she should check the nature of the agreement, the amount outstanding under the agreement and the settlement figure required to complete the agreement and obtain ownership of the vehicle. The official receiver should consider whether there is any benefit for the estate (by consulting agents if necessary). If there is no equity, the official receiver should inform the hiring owner that he/she does not intend to deal with the vehicle and that it should be collected as soon as possible.

If there is sufficient equity in the vehicle to provide a benefit for the estate after paying the costs of sale, the hiring owner should be asked in advance to confirm that he/she has no objection to a sale by the official receiver. The sale of a vehicle subject to any form of agreement should always be placed in the hands of agents. If there is doubt as to whether the vehicle can be sold for a sum sufficient to pay the settlement figure under the agreement, it may be possible to agree with the hiring owner that he/she will deal with the vehicle and hold any surplus to the order of the official receiver or any insolvency practitioner subsequently appointed as liquidator or trustee."

[boro1986]

Imstillhere get a grip was making an observation that a lot of people seem to do it now a days. I am very sorry to hear what happeneed to ypur daughter i just have a problem with people living beyond their means!!!

[jhosking1981]

I suggest that before your daughter considers Bankruptcy, you look into an IVA, I have personally gone through an IVA.
My original debt of around 30K was reduced to around 14K.

Good luck

[SLUGGER.U.K]

Boro 1986....We are the worst country in europe for personal debt 99percent of the UK population are in debt...tell me have you got a mortgage? or are you totally debt free!! if not stop bitchin at other ppl ,Ok some deserve it like the bloke {asian} leaving the UK to go to Canada to escape his debts...No excuse!! but get real, If the money was not available to the individual in the first place then they could not get into debt in the at all..If you want to bitch at some one bitch to the money lenders/banks, they are the real problem for lending it in the first place, we as humans are basically crap at many things including self management and seemingly loads of money matters too