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Ash
Ash, Solicitor
Category: Law
Satisfied Customers: 10915
Experience:  Solicitor with 5+ years experience
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Hi. Can someone answer my question, I am an owner driver, I

Customer Question

Hi. Can someone answer my question, I am an owner driver, I am considering going bankrupt, my vehicle and trailer are on a hp agreement, the vehicle and trailer is currently at a vehicle repair garage and they will not release it to me as I have an outstanding invoice with them, what can I do?

Thanks.
Submitted: 2 years ago.
Category: Law
Expert:  UKSolicitorJA replied 2 years ago.
Hello,

Are you unable to pay the invoice?
Customer: replied 2 years ago.
No, the firm that have my vehicle is one of my creditors who I will be listing when I file for bankruptcy.
Expert:  UKSolicitorJA replied 2 years ago.
Thank you. Do you have a specific query please?
Customer: replied 2 years ago.

sorry, I mis- read your previous answer re paying the invoice, NO, I can not pay the invoice.

My specific query is can they legally keep the vehicle, what can I do to get it back, I am not in a position to pay the outstanding invoice, do I have any legal rights to ask for the vehicle back, can they strip the vehicle down and sell off parts to cover their outstanding account? Basically where do I stand on a legal point of view on this matter?

 

Rgds

Expert:  UKSolicitorJA replied 2 years ago.
Thank you.

You should read any terms and conditions of repair of the garage, they have a lien over the vehicle until they are paid under common law so yes they may retain the vehicle until payment.

If their terms allow them to strip the vehicle or sell it, then they are allowed to do that in the event of non payment.

See here for more information

http://www.insolvencydirect.bis.gov.uk/freedomofinformation/technical/TechnicalManual/Ch1-12/Chapter9/part5/part_5.htm

Can I assist further ?
Customer: replied 2 years ago.

Thank You, I was lead to believe that the vehicle, being on a HP agreement, would not be able to be sold as the "title" would be in the name of the finance company, therefor, making a sale would not "pass title" to the new owner, is this correct? Also if the repair firm sell the vehicle, what happens to the HP agreement in terms of my outstanding amount to the finance company?


 


Rgds

Expert:  UKSolicitorJA replied 2 years ago.
What work has the garage done to the vehicle and are they aware that it is under HP Agreement?
Customer: replied 2 years ago.

The outstanding account is for work on a previous vehicle and also for this vehicle, the amount owed currently stands at circa £6000, I do not believe they are aware the vehicle is under a HP agreement.

Expert:  Ash replied 2 years ago.
Hello my name is Alex and I will help you with this. Please note that I am a working Solicitor and may be on and offline as I have to attend Court and meet with clients, even at weekends. As such you may not get an instant response when you reply, but rest assured I will be giving your question my immediate attention upon return You do not need to wait here as you will get an email when I reply.

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Customer: replied 2 years ago.

Hello again, the repair company have informed me they have stripped the vehicle and sold it for spares to cover their repair cost, the finance company are now in touch wanting to know why I have stopped paying the finance on the vehicle, what can I do? And am I still responsible for the outstanding amount owed on the vehicle?

Expert:  Ash replied 2 years ago.
Yes you are still responsible.

If you have no assets then you can go bankrupt. The process is set out here:

https://www.gov.uk/bankruptcy/overview

Otherwise if you do have assets you could enter into an IVA, its a step up from bankruptcy.

http://www.insolvencydirect.bis.gov.uk/casehelpmanual/I/IndividualVoluntaryArrangements.htm

But with bankruptcy you are generally discharged after 12 months an IVA can last a number of years.

Can I clarify anything?

Alex

Customer: replied 2 years ago.

I have a mortgage in joint names with my wife, the property is worth around £100k, we have a mortgage of approx £53k, if I go bankrupt will I be forced to sell the house to release the money, I understand that only 50% of the profit is mine the rest belongs to my wife, is this correct? Basically will I be forced to sell the house, we have 2 children ages 18 and 9 living at home.


Thank you.

Expert:  Ash replied 2 years ago.
Yes you would have to release 50% of the equity. If you can't you may be forced to sell it yes. Your wife may be able to remortgage.

Does that clarify?

Alex

Customer: replied 2 years ago.

My wife is unable to re mortgage due to her lack of earnings, as we looked into this.

Expert:  Ash replied 2 years ago.
I see, you may be able to buy that portion or yes you may have to sell.

Alex

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