if I declare myself bankrupt would my vehicle on hire purchase be taken from me? I have never defaulted on the payments.
This is entirely at the discretion of the Official Receiver, the HP company and your circumstances. There are many HP companies that allow people to keep vehicles in bankruptcy, but others do not – check your contract. Regarding the OR, there is nothing in the legislation that says yes or no, but it is still likely that you will have to give up the vehicle. The reason for this is that the OR will see your monthly payment as money that could be paid into an Income Payments Agreement (IPA), a monthly arrangement designed to pay a trickle of money to the creditors over 36 months. Having said that, we’ve known of a case where the person stood to lose his job if he didn’t have a suitable car and the OR allowed him to keep it – the Official Receiver will seldom do anything that threatens a person’s ability to make a living.
Call us on 01425 600129 or 07479 739139 / 07894 481175 with any further bankruptcy questions or for bankruptcy help. Our advisers are not scripted and will gladly explain everything in easy to understand terms.