What about the car?

jessie-jane

Please can anyone advice about what happens to your car (which is on a personal loan) if you decide to go bankrupt. Tha car has 11,000 still outstanding which we are keeping up the payments for next 4 yrs, husband needs a reliable car for work and is worried if we decide to go bankrupt that the car would have to go but then we would have no means of purchasing another car. jessie-jane

gettingitsorted

Hi jessie ,

who is going BR you or your other half ,whos names the loan in ?

Idiophreak

how much of the car have you paid off?

If you've paid off a chunk, could you consider selling it, paying off the remainder, then buying a cheaper (but still reliable..) car for £4k or so?

jessie-jane

Hi gettingitsorted, the loan is only OH name and we would probably both go bankrupt.

Idiophreak, we have only been paying for the loan for the last 12 months so hardly paid anything off yet, we did lool into trading in for older model but all garages we tried wouldnt give us anything like what we need so we are really stuck.

gettingitsorted

jessie how much in reality is the car worth ?

the thing is that if your car is newish then it would defo be seen as an asett as is most vehicles over £1000.

could you sell it privatly ?

this is presuming that the loan is not set on the car .

Richard_S

jessie-jane wrote: »

Hi gettingitsorted, the loan is only OH name and we would probably both go bankrupt.

Idiophreak, we have only been paying for the loan for the last 12 months so hardly paid anything off yet, we did lool into trading in for older model but all garages we tried wouldnt give us anything like what we need so we are really stuck.

Hi jessie,

The standard procedure in bankruptcy for a vehicle of this value is for the loan company to reposses the vehicle, sell it, and the loan company is listed as a creditor to the value of the shortfall. I'm assuming the loan company has a charge over the car because if it doesn't then the situation is different.

The O.R will allow a bankrupt to continue with a loan if it's a relatively small amount, the repayments are almost finished and the loan company don't object.

Richard

gettingitsorted

Richard_S wrote: »

Hi jessie,

The standard procedure in bankruptcy for a vehicle of this value is for the loan company to reposses the vehicle, sell it, and the loan company is listed as a creditor to the value of the shortfall. I'm assuming the loan company has a charge over the car because if it doesn't then the situation is different.

The O.R will allow a bankrupt to continue with a loan if it's a relatively small amount, the repayments are almost finished and the loan company don't object.

Richard

Mr Rich the op states that the car is on a personal loan

Richard_S

gettingitsorted wrote: »

Mr Rich the op states that the car is on a personal loan

Dear Madamoiselle Gismo,

I greatly appreciate your offer of teaching me how to read english now that I am a resident of your lovely sunny country :rotfl:

The difference is that some loans are a specific loan with title resting with the company until the loan is repaid; others, and I hope this is one of them, are just a general loan that should greatly increase the O.P's scope to sell the vehicle and purchase a cheaper one.

Mr Rich

jessie-jane

Thanks for the information,would it be possible to transfer the car loan to my name and only OH then go bankrupt, although we are married dont know if this would make any difference or would it be possible to transfer the loan to father ( we then pay him)and then go bankrupt but still get to use the car.

gettingitsorted

Richard_S wrote: »

Dear Madamoiselle Gismo,

I greatly appreciate your offer of teaching me how to read english now that I am a resident of your lovely sunny country :rotfl:

The difference is that some loans are a specific loan with title resting with the company until the loan is repaid; others, and I hope this is one of them, are just a general loan that should greatly increase the O.P's scope to sell the vehicle and purchase a cheaper one.

Mr Rich

Gismo sorry rich

jessie-jane

Unfortunately the loan is a car loan, the value of the car is actually about the money we owe 11000 as its only 18 months old, we may beable to sell private but we still need the car everyday.