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L20
Starting Member
46 Posts |
 Posted - 15 March 2009 : 15:05:52
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Car on finance
I have a car on finance alhtough I took the finance for my son as he was under 21 and could not get it. This is genuine by the way, My son has paid a standing order into my account from day 1 to pay the finance D/D and although the finance company put the log book in my name it has always been my son that insured and taxed the car. As I have proof of who has been paying this would the OR allow the car to be kept as it is really my sons and I have my own vehicle that I use? Just wondering as i'd feel real bad if my son lost his car and all that he had paid to it.
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Melanie.n
forum expert
United Kingdom
1282 Posts |
Posted - 15 March 2009 : 15:31:22
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two things - firstly have you already filed for bankruptcy or considering this a as an option?
Check your agreement as to whether a hp agreement or a motorloan/credit agreement - if the latter, there would be no difficulty as it is a loan not secured on the vehicle and no further payments would be made - if this is the case, you then have the 'ownership' of the vehicle to consider. From documents ie log book the vehicle is yours as it is in your name and the action taken by the OR will fully depends on the value of the vehicle.
If the vehicle is on a HP agreement and this is in your name , the agreement is usually void on the making of the bankruptcy order and the HP company would take steps to collect the vehicle - if you are still considering bankruptcy but have not yet filed your petition - an alternative option for you is to speak to the hp company (if it turns out to be HP agreement) and fully explain your situation imminent bankruptcy etc enquire as to whether your son can 'take over' the agreement and continue the payments - and transfer the vehicle into your sons name. I give this advice on the information provided,in that your son has been making the repayments etc, i would not normally condone the transfer of assets into someone else's name to put them out of reach of the OR and your creditors
Melanie Nicholas
28 years insolvency experience - 23 of which in the Insolvency Service
- Insolvency Manager
Jones Giles
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L20
Starting Member
46 Posts |
Posted - 17 March 2009 : 18:01:16
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[quote]Originally posted by Melanie.n
two things - firstly have you already filed for bankruptcy or considering this a as an option?
Check your agreement as to whether a hp agreement or a motorloan/credit agreement - if the latter, there would be no difficulty as it is a loan not secured on the vehicle and no further payments would be made - if this is the case, you then have the 'ownership' of the vehicle to consider. From documents ie log book the vehicle is yours as it is in your name and the action taken by the OR will fully depends on the value of the vehicle.
If the vehicle is on a HP agreement and this is in your name , the agreement is usually void on the making of the bankruptcy order and the HP company would take steps to collect the vehicle - if you are still considering bankruptcy but have not yet filed your petition - an alternative option for you is to speak to the hp company (if it turns out to be HP agreement) and fully explain your situation imminent bankruptcy etc enquire as to whether your son can 'take over' the agreement and continue the payments - and transfer the vehicle into your sons name. I give this advice on the information provided,in that your son has been making the repayments etc, i would not normally condone the transfer of assets into someone else's name to put them out of reach of the OR and your creditors
Melanie Nicholas
28 years insolvency experience - 23 of which in the Insolvency Service
- Insolvency Manager
Jo
Hi Melanie - Thanks for your answer.
I have not yet gone BR but will be doing so soon. The car is an HP agreement as far as im aware. I probably didnt explain myself too well. I have noticed in some cases the OR allows the bankrupt to keep the car if needed for work etc. I know this is not my request as I dont even use it but I am sure the finance company would allow it to be kept as that way they are still being paid whereas if taken back they would be worse off as the vehicle is worth alot less than the finance outstanding. I was just going to be hoinest with the OR and tell them that it is in my name for one simple reason that my son was under 21 and the comapny would not lend to him. As I said I can prove all payments have been made by him. As finance is still outstanding the car would not release anything for creditors as if it went back it would go to the finance company and they would keep whatever they got for it at auction.
I was just interested to know whether the OR would understand the situation and allow my son to keep his car. I know the finance wont transfer the agreement into his name, but this is all totally honest and above board.
Thanks
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John
New Member
United Kingdom
73 Posts |
Posted - 17 March 2009 : 18:45:16
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Hi
firstly the OR can do little about the vehicle if it is a secured loan and HP is exactly that.
I'm also sure that the OR would, having seen the evidence via your bank statements, not have any problem as your son is making the payments.
The question is the lender. It may seem reasonable to assume that they would be far better off to allow the current situation to continue but it is very often the case that the HP company will repossess the vehicle whether it makes them worse off or not.
You therefore need to be up front with the HP company and let them decide either way.
John White
England Jackman & Spacey |
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Car on financeI have a car on finance
