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Sue for defaulted payment under hire purchase?

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asked on Feb 3, 2016 at 01:53
by   clermont
Our company has a MPV which is still under hire purchase with one more year before final payment. Currently, company is under financial crisis and has defaulted payment for 3 going to 4th monthly installment. We received a call from the bank officer asking how and when we can settle, we said we are trying to sell it off. The officer said if we cannot settle the payment, they can sue the company to wind up.
I thought bank will only repossess the vehicle and auction it off. Any balance still due, hirer has to pay or be sue.
Can anyone advise on this? Can they really sue the company to wind up? The balance of 80k+ is much lower than its market value, it can be sell off at 140k.
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answered on Feb 7, 2016 at 14:27
by   rayna
they can. but most likely they will bankrupt the guarantor first. winding up is a pricey option
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