Hi, welcome to the forum, I'm relatively new too. Not sure about a caravan, but we have a car on HP at the moment and we were able to keep this. Hopefully one of the advisors will be along soon to help clear this up for you.

xx

Welcome to the forum worriedme. Thank you for your kind words.

Hire purchase agreements aren't included in amongst the creditors in a trust deed as the lender has the option to recover the goods. That's why many people keep a car that's on hire purchase during their trust deed and make the payments as usual.

A car however is essential for many people which is why creditors will tend to allow a reasonable car HP payment.

A caravan couldn't be described as being essential in most circumstances, so there would be a question as to whether creditors would be happy for the amount that they are repaid to be reduced by your expenditure on the caravan.

There may be some counter-argument to this I suppose. If you started a trust deed and the caravan was taken from you, and sold at a loss, the new shortfall debt would then be included in your trust deed. That would leave your payments into the trust deed being spread more thinly amongst the creditors.

How much is your HP payment each month?

Thanks for your prompt response. The payment is just over £200 per month.

worriedme.

Hi Worriedme, and again welcome to the Forum.

As TDA says, I would think it may depend on how much you pay per month for the caravan, as to whether a Trustee and creditors will be happy with that. If it is quite a high payment, then it is unlikely they will accept it. Can I ask who the HP is with, as some HP firms simply will not let you keep something on HP if you are insolvent. For instance, BMW Finance will not let you keep even a car on HP; whilst Blackhorse may allow it a Trust Deed, but defenitely not in Sequestration. Although HP is not included as a creditor as a rule, the Trustee may write to them for a settlement figure to see if there is any equity in the caravan. This may then alert them to your Trust Deed or Bankruptcy. What you can do is write to the HP company yourself and ask for a settlement figure. This means your Trustee will not have to do it, which may avoid bringing it to the HP Companys attention. Your Trust Deed firm should be able to advise you before you enter into anything, so you have a good idea of what to expect before you sign anything. Make sure you get it all in writing.

Thanks Shona. The HP is with Black Horse, so that sounds a bit promising if we want to keep the caravan.

I'll take your advice and contact them for a settlement figure and then consider how next to proceed.

Are we able to discuss the ins and outs of a Trust Deed with someone before proceeding with an application?

Hi worriedme.

There would be no issue with you talking this through with someone without any cost or commitment at that stage.

Not only are you able to discuss the ins and outs before applying, you most definitely should, worriedme!
In terms of the caravan HP - I'd have thought it would be difficult to justify £200pm going out each month for this, even if the HP company are happy to continue with the agreement. Maybe would have to be paid by a third party instead in order to keep the caravan.