My husband and I are thinking of going bankrupt. We have a £105000 mortgage on a house worth £95000 + a secured load of £34000 and a 3rd charge on the house as we failed to pay our unsecured loan of £28000. We are in a DMP and paying £41 per months on unsecured debts of around £33000. The only problem I have is that the car we drive which we pay £400 per month for has the finance in my fathers name so I'm not sure what would happen to that as I would not want to stop paying my dad. The agreement ends 2014. Also if we don't have a car its impossible for my husband to get to work due to public transport not starting early enough. We also have 3 daughters to support as well all under 12. Could someone please advise me what would happen to the car. Thanks Joanne
The debt to your Father would be written off if you were to declare bankruptcy as that debt would be treated the same as your other unsecured debt. However, your Father would need to keep up on the finance repayments himself.
I suggest you speak to an expert either on here or on iva.co.uk, as I know you posted on there too.
My father took out the agreement for us. The car is on Hire Purchase and expires in March 2014 when we can either make a balloon payment, re-finance the balloon payment hand the car back or use any equity in it as a deposit for a new one.
Do I take it that your father is the registered keeper of the car and the finance agreement is in his name? If this is the case then the OR will not be interested in the vehicle as it does not belong to you. However paying £400 per month on the Hire Purchase is of some concern. It is an awful lot to pay for a vehicle even if your husband does need it for work. Unfortunately I suggest that the OR will not be happy about this and will require you to reduce these payments even if it does mean selling the car and getting an older, cheaper one. I think that even justifying the expense by intimating that your husband needs a reliable and comfortable car may be pushing your luck!
My husband is the registered keeper, but the HP in my father name. My father has said he would go half with the monthly payments until we can sort ourselves out. I'm hoping the OR will see that paying £200 and my husband keeping his job will be OK
That is very kind of your father and, yes, I would think that your husband has no problems with the OR to paying £200 per month for a vehicle especially as he needs it in order to keep his job.
My husband and I are thinking of going bankrupt
Posted - 21 October 2010 : 08:36:56
