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 My car was originally bought on an HP agreement
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Mini500
Starting Member



United Kingdom
2 Posts

Posted - 17 May 2009 :  22:13:08  Show Profile  Reply with Quote
My car was originally bought on an HP agreement, and to help me out during financial difficulties my parents paid off the remaining finance (9.5k approx) and I now owe them that money.
Due to a serious change in circumstances, I may have to declare myself bankrupt in the near future. My car is only worth 7k, and I would still owe my parents the money they paid to clear the agreement. What I'm worried about, is that the bankruptcy court will force me to sell the car as an asset to pay of my other creditors even though I will still owe my parents all this money. Will thishappen?

Reviva UK
Advanced Member

United Kingdom
2452 Posts

Posted - 17 May 2009 :  22:24:26  Show Profile  Reply with Quote
Hi

the official receiver - and the law would view any preferential payment towards one creditor ( your parents) over any other creditor as wrong, and they have the power to overturn that.

So if you were to sell the car and give your parents the money they would infact be contacted by the OR and asked to repay this.

Didi your parents give you the money to send to the finance company or did they sent the money directly from their bank account to the finance company?

Also at the time the money was paid what was owed and what was the value of the car?

It may be possible to present this as your parent purchasing that car from the finance company or certainly having a part share in the car but it depends which account the money went from

Paul Johns
Assisted Bankruptcy Specialists
Reviva UK
http://www.revivauk.com

Real People ..... Real Debt Solutions
www.revivauk.com
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Mini500
Starting Member



United Kingdom
2 Posts

Posted - 18 May 2009 :  16:29:35  Show Profile  Reply with Quote
My parents put the money into my bank account to allow me to pay off my debt, which had I continued to the end of the HP agreement would have been 13k. They gave me 9.5k to pay it off, the car has recently been valued at 7k.
Is it possible for me to transfer the legal ownership of the vehicle to them, as they paid for it anyway, and just become the registered Keeper of the vehicle so that it would not be taken by the court, as regardless of whether I have the car or not, I would still have to pay my parents back for the amount that they have loaned me.



Mini500
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John
New Member



United Kingdom
73 Posts

Posted - 18 May 2009 :  20:51:12  Show Profile  Reply with Quote
Hi

if you have documented evidence of the transfer of £9.5K from your parents account to yours and from yours to the HP company then there is a case to argue that your parents own the vehicle.

If you have, transfer it. This will need to be disclosed on the forms and then explained together with the documented evidence post bankruptcy to the OR. If an examiner tries to claim the car belongs to you stand your ground, the court will, I have no doubt, find in your parents favour.

And you owe your parents nothing in the eyes of the OR as the car belongs to them. Section 3.9 asks if you have the use of a car that does not belong to you, enter the car details there.

You can repay your parents post discharge.

John White
England Jackman & Spacey

Edited by - John on 18 May 2009 20:55:23
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