DRO's and car on HP

[chrisp1968]

I have a car on HP, up to date on payments and I have 2 mentally disabled children, would I have to justify the HP payments based on the fact I'm a carer for my sons as it is classed as a vocation ? Thanks for any help/advice.

[Amethyst]

Re: DRO's and car on HP

This is the advice from National Debtline - you might be best giving them a call about it and find out how it would be classed. Also sound slike you need to check your HP agreement to check it won't be terminated for entering a DRO.

How is a hire-purchase or conditional-sale agreement dealt with in a DRO?

If you are not in arrears with your hire-purchase (HP) or conditional-sale agreement, you can choose to exclude the debt from your DRO application. However, if you are in arrears, you must include it. Any further payments to the creditor must stop.

If you are not in arrears, you may decide to leave out your HP or conditional-sale agreement from your DRO. If you do this, future payments towards the agreement will only be allowed if the item is necessary to satisfy the basic domestic needs of you and your family. Otherwise, if you want to keep the item, payments under the agreement would need to be made by a third party, such as a family member or friend.


If you have a vehicle on a HP or conditional-sale agreement and it is worth more than £1,000, payments would not be an allowable expense in your DRO. Therefore, you would have to include the debt in your application unless a third party is willing to take over the agreement for you.


For more information on HP or conditional-sale agreements and DROs, contact us for advice.


Warning:

creditor ends the agreement

Some hire-purchase or conditional-sale agreements may contain a clause which allows your creditor to end the agreement if you get a DRO. Check your agreement and contact us for advice.

https://www.nationaldebtline.org/EW/.../Page-03.aspx#

[Nibbler]

Re: DRO's and car on HP

Also previous feedback on this from two CAB approved intermediaries here: http://forums.moneysavingexpert.com/....php?t=5181295

[Amethyst]

Re: DRO's and car on HP

ahhh. Thanks Nibbs - thought I recognised the situation.

[chrisp1968]

Re: DRO's and car on HP

I've approached the HP company and they are fine for me to keep the car.