Bankruptcy and Car

sovilla

I have 2 cars on finance and am going bankrupt (when I can get the £700 together)

One of the cars is in joint names with my partner.

My car is a 7 seater people carrier as we have 5 children, I need the car to get the kids to school (in another town) and also I work in the community and need it to travel to different doctors surgerys. We owe about £6000 on the car but it is only worth about £1500. Do you think we would be allowed to keep the car and continue paying the finance on it.

Also the other car that is in joint names my partner uses for work, would we still be able to keep that one if my partner continues to pay for it.

Both cars are registered in my name as I had the longest no claims when it came to the car insurance.

Thanks in advance.

Mouse1812

What type of finance is the £6,000 on? HP, Finance Lease or Bank Loan?

What makes you say the other car is in joint names? who bought it?

PippaGirl_2

The OR is unlikely to allow you the expenses of paying the credit agreements.

sovilla

Sorry the joint one I meant is in joint names on the finance agreement. They are both HP and are with Billing Finance. Thanks

Mouse1812

The Cars belong to the HP company then, not you. OR can't take them.

mattannar

Both cars are registered in my name as I had the longest no claims when it came to the car insurance.

This reads as if you are committing fraud. If your partner is the main driver of one car, they should have the insurance in their name.

immoral_angeluk

Mouse1812 wrote: »

The Cars belong to the HP company then, not you. OR can't take them.

No, but the OR can instruct the HP company to come collect their goods and not allow the op to pay. However as the debts are joint the other person will be left to foot the payments and o long as they do so the car shouldn't be affected, just the op's liability for it.

Mouse1812

immoral_angeluk wrote: »

the OR can instruct the HP company to come collect their goods and not allow the op to pay.

Can you quote an authority for that?

immoral_angeluk

Mouse1812 wrote: »

Can you quote an authority for that?

It's in the official receiver's technical manual, available under freedom of information on the insolvency service website.

Sorry, no idea how to post links from my iPad...

Mouse1812

immoral_angeluk wrote: »

It's in the official receiver's technical manual, available under freedom of information on the insolvency service website.

Sorry, no idea how to post links from my iPad...

Nothing about that in here indeed all it says

"If the vehicle has no realisable value, the finance company should be informed, by letter that the official receiver does not intend to adopt the agreement. The finance company should also be notified of the location of the vehicle, as in the address of the person who retains control of it"

PippaGirl_2

immoral_angeluk wrote: »

It's in the official receiver's technical manual, available under freedom of information on the insolvency service website.

Sorry, no idea how to post links from my iPad...

I found it. It's here

7) Vehicles subject to finance agreements
(September 2008)
Generally, where a vehicle is the subject of a finance agreement, the official receiver must consider the type and terms of the finance agreement before deciding on the course of action to take. For further information see Case Help Manual part – Assets Subject to Credit
The terms of any hire purchase, conditional sale or leasing agreement usually gives to the other party to the agreement (referred to hereafter as the hiring owner) the right to terminate the agreement in specified circumstances. These circumstances will usually include the making of a bankruptcy or winding –up order and will generally allow the hiring owner to take back the vehicle.
Where a vehicle is subject to a finance agreement, the official receiver should contact the hiring owner. This contact should be by telephone in the first instance, followed up in writing. The official receiver needs to know the nature of the agreement, the amount outstanding under the agreement and the settlement figure required to conclude the agreement and obtain ownership.
From the value of the vehicle in question, the official receiver can then decide whether there would be any benefit to the estate in realising the vehicle. If there is no equity, the official receiver should inform the hiring owner that he/she does not intend to deal with it and that arrangements should be made to collect it as soon as possible.
Where the value of the vehicle is sufficient to allow for a surplus after settlement of any debt to the hiring owner and payment of the agent’s costs of sale, the official receiver should approach the hiring owner for his consent to a sale by the official receiver. Where the likely equity from such a sale is borderline, the official receiver can come to an agreement that the hiring owner dispose of the vehicle and hold any surplus to the official receiver’s order. Such decisions should only be made by the examiner and any relevant correspondence should be passed to them for consideration as soon as it is received.
No action should be taken by a case officer in this regard without the prior agreement of the examiner.
If a vehicle subject to finance has a cherished/personalised registration mark the official receiver will need to establish whose name is on the registration document for that vehicle. It is the registered keeper of a vehicle that has the right to transfer the registration mark, so where a finance agreement is in place, if the finance company are the registered keeper of the vehicle, they will have acquired the rights to that registration mark.
For more information regarding vehicles subject to finance that have a cherished/personalised registration mark, see TM Chapter 31.2 – Motor Vehicles, paragraph 31.2.15A