ceased trading 09

jamesy08

Hi all,i had a company that ceased trading in dec last year,I had a transit van,loaned taken out by company,still about 8k still owed to bank,i havnt made any payments since closing down,and have gotten many calls saying the van will be taken back,my question is this,if i say,take it back,because the company no longer exists,and same vans now are worth 3k,am i still liable for the original loan,or can i just walk away,hand back the van
regards
jamesy

Max Power1

jamesy08 wrote: »

Hi all,i had a company that ceased trading in dec last year,I had a transit van,loaned taken out by company,still about 8k still owed to bank,i havnt made any payments since closing down,and have gotten many calls saying the van will be taken back,my question is this,if i say,take it back,because the company no longer exists,and same vans now are worth 3k,am i still liable for the original loan,or can i just walk away,hand back the van
regards
jamesy

Id imagine you will find it difficult to do so, unless the company was a Ltd co.

jamesy08

yes,it was a ltd company

Bandara

did you buy it by lease or HP ?

if its HP then the half rule clause may get you out of trouble... speak to your solicitor to see if i can be done by a ltd company. You may only have to bring your loan up to 50% paid and then you can hand the keys back without ANY bad rating against your name. Which is obviously hugely significent.

http://www.irishstatutebook.ie/1946/en/act/pub/0016/sec0005.html

"5.—(1) A hirer shall, at any time before the final payment under a hire-purchase agreement falls due, be entitled to determine the agreement by giving notice of termination in writing to any person entitled or authorised to receive the sums payable under the agreement, and shall, on determining the agreement under this section, be liable, without prejudice to any liability which has accrued before the termination, to pay the amount, if any, by which one-half of the hire-purchase price exceeds the total of the sums paid and the sums due in respect of the hire-purchase price immediately before the termination, or such less amount as may be specified in the agreement"

More info here
http://www.itsyourmoney.ie/files/publications/p_20080128041858Car%20Finance%20Jan%2008.pdf

Bandara

James,

if you can go the half rule route NOT UNDER ANY CIRCUMSTANCES sign anything from the bank, they WILL send you a letter with with wording along the lines of "I agree to surrender my vehicle" etc etc

ignore it, DO NOT sign it, I can't stress this enough. If you sign a Voluntary Surrender you will have it listed against your credit rating and your screwed.

You just need to send them a letter for the balance of the borrowing in order to bring it to the 50% mark and then your are clear., in your letter quaote that you are enclosing a cheque to bring the amount up to the 50% mark and you are availing of the HP Half Rule Agreement.

I'm by no means an expert on this so please get advicefrom your solicitor, and as I said check a ltd company can do it.

good luck

HT

jamesy08

Maybe a fast talk with a solicitor,would be best thing,thanks for your advice
jamesy

DoMyBooks

Is the Limited company liquidated?

Did you sign a personal guarantee on the van loan?