Oh poop!!! Car owned by parents but for ins purposes...

angiebhfx

What would happen if tomorrow when I see my Parents if we transfer the ownership back to them, keys reg doc and i cancel my car insurance. Can they still seize the car. No money will change hands.

Aunt_Harriet

The OR will almost certainly see that as suspicious. Disposing Of Assets before you go bankrupt is not looked upon well and doing something so drastic during the process of bankruptcy will alert him/her that you have something to hide.

I fear, as stated by a previous poster, that the car will taken from you to pay your creditors, and the only payments you will be able to make to your parents will be from your surplus income. But even then there's no guarantee that you will be allowed to do that, as it can be seen as favouring one creditor (your family) over another.

You are now involved with a Legal Process and need to wary of anything that smells even the slightest of Fraud.

The worst case scenario is, as stated before, you will lose your car (more than likely) and your parents will not receive any more money from you. (a real possibility).

Aunt_Harriet

Oh just another thought. As you are no doubt aware, the loan taken out by your parents is verbal only and without legal paperwork to substantiate it, this will not look good to the OR, or prove that you have 'learnt any lessons' when it comes to credit/money during the Debt Management process.

Please Do Not be tempted to get anymore such loans taken out on your behalf , by others, while the bankruptcy process is going through!

I would phone the OR on monday and talk things through. You will feel so much better afterwards.

angiebhfx

Aunt_Harriet wrote: »

Oh just another thought. As you are no doubt aware, the loan taken out by your parents is verbal only and without legal paperwork to substantiate it, this will not look good to the OR, or prove that you have 'learnt any lessons' when it comes to credit/money during the Debt Management process.

Please Do Not be tempted to get anymore such loans taken out on your behalf , by others, while the bankruptcy process is going through!

I would phone the OR on monday and talk things through. You will feel so much better afterwards.

Thanks

The car was bought because I needed it for work. I had an old banger that was costing me more to run than the amount I was paying my parents back every month. CCCS knew about the car.

How come other verbal agreements stand up in court. Anyway if I gave my Mum the car back there wouldn't be money changing hands, I am just returning to her whats hers. I am not benefiting.

My parents aren't down as creditor on my bankruptcy either. I didn't think she was has how can she be when the car is hers until we had paid for it.

Why is this any different to the House. We left the house and gave it back to NR for them to dispose of. We owe them more than it will sell for. The same applies to the car. We give my Mum the car back, she sells it their is still a shortfall.

It seems I was asking the wrong questions before I was made bankrupt. If only I had worded it different we could have done something about it prior to the BR.

David_F

Angie,

I am in a similar position to you. I am on benefits, not working and my parents took out a loan in their name to buy me a car when mine broke down. In the end I used the money to repair my car but the loan my parents took out had to be listed in my BR as a unsecured creditor and I now no longer LEGALLY owe it.

When I went BR the OR wanted to take the car as they had valued it at £3k, way more than I think it is worth but that's another story, Anyway, the OR was happy to let me keep the car as I sent proof that I needed it to travel to interviews and that my line of work (field sales) required a car to do the job. The OR also said that they would get my car valued and if it was worth more than £2k they would sell it and buy me another car up to the value or £2k.

Maybe this is something you could consider as a way of keeping the car, depending on it's value.

I'm sure it will all get sorted out OK and good luck with the BR.

David

angiebhfx

David_F wrote: »

Angie,

I am in a similar position to you. I am on benefits, not working and my parents took out a loan in their name to buy me a car when mine broke down. In the end I used the money to repair my car but the loan my parents took out had to be listed in my BR as a unsecured creditor and I now no longer LEGALLY owe it.

When I went BR the OR wanted to take the car as they had valued it at £3k, way more than I think it is worth but that's another story, Anyway, the OR was happy to let me keep the car as I sent proof that I needed it to travel to interviews and that my line of work (field sales) required a car to do the job. The OR also said that they would get my car valued and if it was worth more than £2k they would sell it and buy me another car up to the value or £2k.

Maybe this is something you could consider as a way of keeping the car, depending on it's value.

I'm sure it will all get sorted out OK and good luck with the BR.

David

Thanks David

I just wish I hadn't been so naive about it.:(

Aunt_Harriet

Try and stay positive about things. It will all be over in a few short years. And things Will get better.

You will be discharged and have a clean credit record.

Not that you'd want to get more credit, i'm sure!.

Besides, the way Mortgage Providers and Lenders have started clamping down, having a blank credit file/history is almost like having a bad one. (Your not seen as a safe 'bet' when it comes to loaning money).

angiebhfx

Aunt_Harriet wrote: »

Try and stay positive about things. It will all be over in a few short years. And things Will get better.

You will be discharged and have a clean credit record.

Not that you'd want to get more credit, i'm sure!.

Besides, the way Mortgage Providers and Lenders have started clamping down, having a blank credit file/history is almost like having a bad one. (Your not seen as a safe 'bet' when it comes to loaning money).

Hi Aunt Harriet,

I have a six year plan. I don't want to buy a house or have credit again because in six years time I want to be free from anything stopping me from having a go at living in Barcelona. I am going to try and learn Spanish over the coming years and get a job over there. I won't buy a house over there either especially since they have the silly practice where they can evict you and give you no compensation (although I think that's in Valencia Comunidad rather than Catalunya).

Thank you for your kind words.

Angie

angiebhfx

:)Good News.

We sent the loan agreement that is my Dad's name that says he bought the car. The OR has said they don't have an interest in it but my Parents will have to buy back their interest and we are not allowed to make any more payments to them. Just need to speak to my Dad now to check if this is okay, but it looks like the Car won't be seized.:)

Thank you everyone for all your support.

Angie

Aunt_Harriet

Well that does sound like good news. What do you mean your parents will have to buy back their interest?

So the car is yours to use?