help needed truck on hp and thinking about entering bankruptcy

[colinmacl]

I am currently considering going bankrupt and have a truck( that i need for work) it is worth around £6000 and has £2000 owing on hp, Will the OR allow me to keep the vehicle or will i be forced to buy a rust bucket?

[labman]

Re: help needed truck on hp and thinking about entering bankruptcy

This was taken from 2006, so the law may have altered. However, before I paste it in, bankruptcy should only ever be considered as a final resort. Have you sought advice from a reputable debt organisation about this? If not, you should do and look in detail at the various alternatives available nowadays before making a decision.

If you are comfortable doing so, post your debts up on here and someone may be able to help over the weekend while the better known debt organisations are closed.

31.2.17 Definition of the bankrupt's estate The bankrupt's estate comprises all property belonging to or vested in the bankrupt at the commencement of the bankruptcy [note 1] except,

• such tools, vehicles and other equipment as are necessary to the bankrupt for use personally be him/her in his/her employment, business or vocation and,
• such clothing, bedding, furniture, household equipment and provisions as are necessary for satisfying the basic domestic needs of the bankrupt and his/her family.

subject to certain excluded property reclaimable by the trustee [note 2].
A motor vehicle may be exempted under section 283(2)(a) or under section 283(2)(b) in very limited circumstances (see paragraph 31.2.23.)

[strangewayofsavin]

Re: help needed truck on hp and thinking about entering bankruptcy

Just to add, the figures you have quoted on the vehicle, because you have paid more than 50% of the vehicle value, they cannot reclaim the vehicle unless they have a courts judgement.
If the vehicle is needed for employment, unless you have refused to make a monthly offer of repayment, no court in the land will grant repossesion, offer the finance company what you can afford, fill out a budjet form, with incoming, outgoings etc and offer them what you can afford, if you can prove your budjet then no court will approve the order,they will award in favour of the creditor.
1) because you own more than 50% of the vehicle,
2) because you have offered to pay what you can afford.
end of.

[Arkwright]

Re: help needed truck on hp and thinking about entering bankruptcy

Just to add, the figures you have quoted on the vehicle, because you have paid more than 50% of the vehicle value, they cannot reclaim the vehicle unless they have a courts judgement.
If the vehicle is needed for employment, unless you have refused to make a monthly offer of repayment, no court in the land will grant repossesion, offer the finance company what you can afford, fill out a budjet form, with incoming, outgoings etc and offer them what you can afford, if you can prove your budjet then no court will approve the order,they will award in favour of the creditor.
1) because you own more than 50% of the vehicle,
2) because you have offered to pay what you can afford.
end of.

I'm not sure the OP's problem is paying the remainder of the finance, as I read it he is more concerned with the OR's interest in it should he file for bankruptcy.

I'm sure the OP will correct me if I'm wrong.

[seduraed]

Re: help needed truck on hp and thinking about entering bankruptcy

There are other methods and strategies. As mentioned above the bankruptcysould be the last resort . Official debt managmentplans, Debt relief orders (if your debts are relativley small, ) a step before bnkruptcy where you pay to a court ppointed person an agreed monthly amout and the court writes your debts down ,and finally bankruptcy.