Car finance

Alcofrolic

Just a quick question, we have car finance in both our names. If I decide to go bankrupt (only thinking about it at the moment) would it just be all moved into my partners name and he can continue to make payments and keep the car?

Thanks in advance.

tigerfeet2006

Is it a HP agreement or a loan to buy the car?

Alcofrolic

Its a HP agreement.

PippaGirl_2

I would think it would be seen as disposal of an asset if you did? Someone else might confirm.

tigerfeet2006

Ok, how much is the car worth and how much is left to pay on the HP agreement?

Alcofrolic

Car is worth about 1750, probably owe about £4000 on it through the HP.

Mouse1812

Thanks to Tigerfeet for teasing the relevant information out. As I suspect she is in the air right now I’ll answer for her

The HP company technically own the car until you make the last payment. The OR has the option to pay off the finance to acquire it and then sell it. They are not going to do that when the outstanding finance exceeds the value of the car, that would be pointless. The OR’s job is to collect cash, not lose it.

So we can go back to your original question, the OR will do nothing about the car except possibly notify the HP company and seek to verify the figures given. While bankruptcy may be a breach of the HP terms, the HP company would be better off if you to continue to meet the payments than repossess the car. In all probability I think you will be fine.

One advantage of the finance being HP. If it had been a loan the car would be taken (unless exempted) and your partner would be left liable for the outstanding balance.

bsisonu

Alcofrolic wrote: »

Just a quick question, we have car finance in both our names. If I decide to go bankrupt (only thinking about it at the moment) would it just be all moved into my partners name and he can continue to make payments and keep the car?

Thanks in advance.

you should discuss it with the loaning/ leasing company's agents, they will better guide u dear

freddy911

If the OR has no interest in the car then its down the the HP company to decide if the will allow you to keep making payments. Mine did, but again this also depends on the OR allowing you the money to pay it.

forgotmyname

Are you sure its HP on a car worth so little?

How long have you had the car and what was its original value?

Also how long was the HP for?

tigerfeet2006

Cheers for that brilliant and concise and clear answer Mouse :beer: and yes indeed I was I was posting from my phone at the airport, now there's dedication for you