Hi Reidy1982.

I'm not 100% sure, but if the question specifically includes the word "own" I would have thought that a lease car would fall outside of that category.

I wonder what the other experts might think about this...

Just spoke to national debtline TDA and they told me i wont be able to renew my car on disability whilst being bankrupt? is this right? They said i can keep a car going on mobility but they frown upon a new car lease whilst BR. If this is the case i was never made aware of it and cause a major problem because my 3 year lease finishes in december and i can go for a new car on another 3 year lease.

Hi Lou.

Is the suggestion that Motability or the trustee would stand in the way of a new lease?

Yes TDA national debtline asked me when my mobility vehicle is up for renewal. I explained decemeber of this year and she said to me has anyone made you aware that mobility will not allow you to apply to lease a new car until i am discharged from BR??. I told her no wasnt made aware of that and i could not understand how that could be done the car is only leased and mobility dont do a credit check and its paid directly from my DLA which cab today told me is not involved as its for my disability, she said unless its different in scotland but thats the advice they give to anyone thinking of br.

Hi Lou.

If the implication is that this is a rule established by Motability (rather than a bankruptcy rule) I think you need to get in touch with them and confirm the position.

I suppose the worst case is that you may need to delay your bankruptcy application for a few months until after the renewal? Hopefully not necessary but a back-up plan at least.

I allready paid my bankruptcy fee TDA 🙁 its too late to hold off without me losing that money.

Let us know what Motability say Lou.

Given the circumstances I wonder if they could offer a little flexibility of some sort.

TDA I just spoke to motability.

This is what they told me, There thin line when renewing a vehicle on motability scheme whilst being BR to actually having a vehicle during BR.

They have to have it in writing from an official reciever that they have no intrest in a vehicle that is hired from motability or any intrest in the allowance that affects the payment of the car.
That is then put up on the persons files and when it comes to the renewal of the car they then assess if they can proceed to renew a lease on a new vehicle if its in between BR status and the person is not discharged. But they say there is no guarantee its at the discretion of motability if will be able to renew my vehicle whilst being bankrupt.
🙁

If you have an exsisting vehicle on a 3 year lease then again you have to have OR inform them. As long as the award to the car payment is not affected the car will not be taken from you.

Hi again Lou.

So it sounds as though you may not have any certainty in advance from Motability. How do you plan to take things forward from here?

I'm not aware of any problems regarding the taking new cars under the motability scheme whilst sequestrated. The Official Reciever is not involved with sequestrations so the advice you have been given sounds like it is specific to England and Wales.

In terms of your application - I agree the question isn't really clear, but I doubt it really matters where you put in the car details as long as they are there. Personally I would say answer the question as to whether you own a vehicle as "yes" and then confirm that it is a motability lease agreement only.

TDA I called them back and I Got someone totally different and they seemed to explain it differently so i asked if they could confirm this in writing so i could forward the information to the offical reciever in the light of current problems when its all done. I was asked for a email address in which they could email me the relevant information. I got an email within half an hour and it seemed to explain it more as to why.

this was the email

I can advise you that Motability Operations choose not to exercise our rights under the terms and conditions to default and terminate agreements on bankruptcy. This is because in most cases the Higher Rate Mobility Component of the Disability Living Allowance (HRMC of DLA) continues to be paid and our vehicles are excused from the bankruptcy.

If a receiver, such as Sequestration Bankruptcy, does not excuse the vehicle and/or HRMC of DLA, we would need to terminate the agreement and collect your Car. However I can advise you that this only happens on very rare occasions. If you are declared bankrupt you will need to contact our Customer Services Department and this will enable us to notify our Accounts Department.

I note from our records that you are due to place an application for another vehicle in mid September 2012 for collection in Decemeber. To enable you to place an order with a Dealer, we require a letter from the Bankruptcy Trustees to confirm the following:

They have no objection to you having an agreement with us
The trustees will meet any debts incurred from you having the agreement, such as excess mileage.

When we have received the letter you will be able to place the application to renew your Motability agreement three months before the agreement for your Vauxhall expires. It is then at the discretion of our service to make the decision of processing a new application.

Hello kevin,

I began to wonder if that was the case as well, I expressed on various occasions i lived in scotland and i did not know if thing were different here as to in england. i was told because the main motability offices are in england that it would fall under what they said even though i am in scotland. Which i think is wrong i dont live down there.

On asking them about the questions motability told me not to tick yes i was to tick no and fill in the section do i have use of another vehicle and list the car there along with the information about them owning it and not me because i do not own it and if i look at my agreement at the top of the agreement it says Hirer (My name) (Owner "we"/us) Motability operations. If i tick yes they say i will be giving incorrect information which may cause my vehicle to imply i own it when its not mine.

Hi Lou.

I think the issue here may be whether a trustee will be prepared to confirm in writing that they will take responsibility for any debts accrued under a new agreement.

With a mobility vehicle you get upto 20 thousand miles a year thats 60 over a period of three year, ive had my car for 2 and a half and i havent even gotten past the 15 thousand marker so there is absolutley no chance of it accuring any debts my car is only used for hospital trips, emergencys and to collect shopping and presciptions. Plus i'm not sure how they can say that when the only excess chargers are asked for at the end of the contract and if my bankruptcy only lasts 12 months and i am discharged them i would only be six months into a new contract so any excess charges for mileage even if i was to go over it which is very doubtfull will not be a issue as i will allready be discharged at that point.