Asking on behalf of friend. Bankruptcy/car?

krustylouise

Hi all,

Please could someone advise me. My friend is considering declaring himself bankrupt, however the family car (used daily for children etc) is on credit in HIS name. As is the car. The issue being, he doesn't drive, his wife does. So it would be her that requires the car. How would they go about keeping the car (primarily for the kids) if he filed for bankruptcy? Transferring finance to his wife isn't an option.

Thanks in advance.

PartyPopper_2

I have a feeling that you get to keep the car, BUT don't take this as gospel. If you rely on it for work, then it would be very silly to take it away from you. I know for IVAs you get to keep a car.

krustylouise

My friend is concerned that technically HE doesn't need it at all and would disregard his wife entirely and remove the car regardless of the children requiring it

National_Debtline

Hello there. Do you know what kind of car finance it is? The two main types are hire-purchase (this is where the finance firm owns the vehicle until the payments are completed) and a loan (he would own the car straight away). Also, have you an idea how much the car might be worth? It's difficult to give a definitive answer until we know the answer to these questions. What I will say, though, is that it is quite probable that the vehicle *could* be implicated in someway.

This is a useful read: http://www.bis.gov.uk/assets/bispartners/insolvency/docs/publication-word/12-589-what-will-happen-to-my-motor-vehicle.doc

Best wishes,

David @ NDL.

wharty

krustylouise wrote: »

My friend is concerned that technically HE doesn't need it at all and would disregard his wife entirely and remove the car regardless of the children requiring it

How does your friend get to work? Could he say his wife/partner takes him to work in the car everyday? He needs it to take his kids to school anyway. Does his wife need the car for work?

krustylouise

National_Debtline_representative wrote: »

Hello there. Do you know what kind of car finance it is? The two main types are hire-purchase (this is where the finance firm owns the vehicle until the payments are completed) and a loan (he would own the car straight away). Also, have you an idea how much the car might be worth? It's difficult to give a definitive answer until we know the answer to these questions. What I will say, though, is that it is quite probable that the vehicle *could* be implicated in someway.

This is a useful read: http://www.bis.gov.uk/assets/bispartners/insolvency/docs/publication-word/12-589-what-will-happen-to-my-motor-vehicle.doc

Best wishes,

David @ NDL.

It's on HP and I estimate approximately £5000.

krustylouise

wharty wrote: »

How does your friend get to work? Could he say his wife/partner takes him to work in the car everyday? He needs it to take his kids to school anyway. Does his wife need the car for work?

Thanks for your reply. His work isn't too far from home. His wide doesnt work as they have 4 children. He doesn't drive at all, so his wife would take the children to and from school.

alastairq

krustylouise wrote: »

It's on HP and I estimate approximately £5000.

In that case, it isn't his asset. It belongs to the HP company.

The issues will be, if the HP company are willing, or not, to continue with things once the bankruptcy is petitioned.....and whether the OR is willing to allow HP payments to continue, as an allowance?

Of course, the spouse could always take over the payments....