Car

wiganjon

hi all,im considering bankruptcy...massive step,i have debts of approx. £20k which until 18 months ago i could repay but my income has gone from £32k to £18 in the last 18 months due to redundancy and taking lower paid job.My question is this...i have a car valued at about £4500,the log book is in my name but the finance on the car is in my mums name...can the car be taken off me and sold if i go bankrupt? BTW i need it for work as i travel 40 miles a day to get to work..thanks all

mysterio_2

all depends

if you have a paper trail etc that proves you didnt buy the car I cant see an issue...just because your the registered owner dont always mean you paid bought financed etc etc

PippaGirl_2

Yes registered keeper doesn't necessarily mean owner as it says on the front of the log book. If your Mum has taken finance out to buy it, it would imply she bought it. Who paid the deposit?

The more usual problem is that the OR may allow you the running expenses of a car if they deem you need a car, such as MOT/tax/insurance but they are unlikely to allow any payment towards a lease or loan and certainly any debt you owe family won't be allowed so if you were allowed to keep the car, would your mother be happy to continue to make the payments would be the other question.

alastairq

To add to Pippa's very important comment.....

Just because no specific allowance is made for making such payments, doesn't mean to say the BR cannot make such payments.
[As long as those payments are not to re-pay a specific loan]


What one does with the monies allowed within one's SOA is entirely up to the individual concerned.

In this case, if payments are [were] being made to a parent who has taken out finance [ie taken on ownership] for something like a car, then these 'payments' would have to be found from elsewhere within the SOA.

arcon5

I found the 'living expenses' category to be quite generous - so it could well be what you put there and spend may mean you can pay your mother.

spacey2012

The car belongs to Neither of you.
It is the property of the finance company until you make the final payment.
The person on the registration certificate is just the keeper.
The person legally responsible for the car.

So just as they can not take away the tower of London, they can not take away a car belonging to a finance company.

Unless your mum is planning to go bankrupt as well, she will have to continue to pay the finance.
I would keep quiet as well if she has changed the keeper to you, the finance company may have a clause covering the keeper and could pull the contract and land your mum in the same stuff you are in.