Post redundancy help!!

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Permalink Reply by ff123 on May 7, 2009 at 10:52am

Ring the company and find out about the break costs? Most contracts have a break clause and it won't help them if you go belly up.
Can you sub lease to someone else????
Talk to an accountant about expenses related to the vehicle ????

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Permalink Reply by Brad Kendrick on May 7, 2009 at 11:10am

Hi ff123,

Thanks for the post. yep, I've called the lease company about it and all they can do is give me one months grace on payments while I am looking for another job. The payout figure on the lease is substantially more than what I would get for it by selling it. Without having employment I would not be able to refinance for that amount and certainly not be able to refinance an amount that would enable me to purchase another vehicle.

Sub leasing (or lease assumption... someone else taking over the lease) apparently does not exist in Australia for some unknown reason.

Not getting much love yet but have not given up looking for a way where I will lose the least amount possible (preferably none at all though that is not likely).

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Permalink Reply by Keith Musgrave on May 7, 2009 at 2:52pm

Hi Brad,
Sorry about your new predicament.
I would discourage you sub letting the vehicle, (even if it was allowed by the lender) as the new user will not look after the vehicle like you would. Also, if they have an accident in it and their insurance is let to lapse, you may become liable as you are the rightful owner.

However, from the description of the vehicle, I would be contacting all sorts of courier and carrier type companies to get work for the vehicle. (I am sure that you have already thought of this). However, even if you can start by picking up small or part time or casual work, you will build a reputation as a reliable service. You can advertise in the local papers (I am not sure of the cost) and church & community bulletins offering your services. Contact work placement companies like "Workforce & Trojan Workforce", update your resume and post it on job placement agencies such as "seek.com" and others.
There is work available in "sports medicine" as sports medics who go to sporting venues and treat injuries as they arise. You might need to do a course in sports medicine which was offered at UNE in Armidale and costs less the $1,000 to complete.

I would discourage you from selling the vehicle as it sounds to me that it was providing you with an income in your last job, so I would expect that you have a certain expertise in this field. Use it. By selling the vehicle you will only crystalize your loss. If you keep it and look after it, it might just come in handy in the future (even if it is just to help family members move house).

Once again, I would like to encourage all readers of this forum to do whatever it takes to meet your committments to lenders. The benefits in the long term far outway the short term relief. But it is also imperative that you communicate with the lenders firstly by phone to advise them of your predicament and request assistance and then via legal representation. And always do 2 things: 1) DO WHAT YOU SAY YOU ARE GOING TO DO and 2) Promote to the lender that it is in everybodies best interests not to commence proceedings. We all go through difficult times (which are also great learning experiences) and if you can get through those times without a bad credit rating, you will benefit in the long term.
Lenders will not lend to you with defaults and overdue accounts listed on your credit file.
I hope this advice helps and finds you well.
Regards
Keith

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Permalink Reply by moonbuggy on May 13, 2009 at 11:33pm

Great advice Keith - if you have the right attitude you can turn what seems to be a bad situation into something positive. Keep the vehicle and create a small business for yourself by doing things better than those around you.

Good luck with it all.

moonbuggy

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Permalink Reply by Keith Musgrave on May 7, 2009 at 3:10pm

Hi everyone,
Just to support a statement I made in my last reply about getting legal representation. I would encourage everyone to get legal assistance in these matters even if you pay them $100 to write a letter for you. Firstly, it will be well worded, without emotion or prejidice, and it will convey the correct message that you want to convey to the recipient. Secondly, your letter will carry a great deal more weight if it is comming from a Solicitor. The recipient will view your letter differently. Many people put pen to paper and say "he did this" and so "I did that" and "so I told him that" and "they can't do this or that" and it is usually 1 whole page which consists of 1 sentance. It is very important to communicate well your grievance and what you expect the outcome to be.
All the best
Keith

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Permalink Reply by Bandwidth on May 7, 2009 at 5:10pm

Hello

One thing I learnt in business is to present a case in Situation, Compliation then Resolution. SCR

So write a letter or business case in the form

Current Situation, stating clearly the facts

Complication, stating the potential outcomes

Resolution, presenting the proposed solution, solutions

Anything else normally complicates the case.

Hope this helps

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Permalink Reply by Keith Musgrave on May 14, 2009 at 11:33am

Hi Brad,
How are things going?
Have you found any benefit from the advice that has been given through this forum?
I would be very keen to know if any of our suggestions have been of help.
All the best
Keith

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