Getting money out of car!

Cheapaschips_5

Hi

My sister in law is in debt, not a huge amount but out of her depth the citizens advice have told her that she is best going bankrupt but she has enough equity (is this the right word?) on her car to cover the total amount of debt. but she cant sell the car because its still on finance.

Is there anyway of legally releasing the money in the car? would she be able to speak to the credit company and sort something out?

If she can get the money she has in the car she will only be £1000 in debt and she can sort that out, but without it she's going to have to go bankrupt and she will obviously lose her car

any help is needed and apreciated thanks

keith_lard

Get a loan to cover the full cost of the car and release it from the Finance company,
Sell the car ASAP then pay back the loan, make sure the loan has no early repayment penalty costs.

Cheapaschips_5

She has tried that one, because she hasnt been able to pay her bills her credit rating has taken a turn for the worse. Even with a credit worthy garentor she has been declined a loan.

keith_lard

with a bad credit history she will be unable to take out a unsecured loan.

if she has a mortgage I would ask them for the cash, then give the cash from the sale of the car back to her lender.

This may incure costs but I cant think of anything else?

you may need to post more details of the debt and maybe others can help?


K.

Cheapaschips_5

Thanks, she doesnt have a mortgage either.

All her debts are either credit card or unsecured loans. Her outgoing outweigh her income so bankrupcy is the obvious way of going about things but we are trying to see if there are any other avenues worth exploring. The car is the only thing of any value she owns, if she could release some of the equity or pay it off then she could pay off everything she owes more or less.

Whats going bankrupt like? if she was to go this way, would she no longer owe anyone anything? could she buy another car and her creditors wont be able to touch it?

Without a car she will lose her job you see!!

chriz1000

She should be able to sell the car, all she needs to do is tell viewers there is outstanding finance on the car and they need to make part of the payment (the outstanding finance) payable directly to the finance company. I’ve known a few people who have used this method to sell there car.
They will even with her permission be able to speak directly with the finance company, so they know after they have made the payment no outstanding finance will exist on the car.