DRO & car

k8te

Hey guys,

So i'm contemplating going down the DRO route, main concern is my car. My dad got me a loan for this car 2 yrs ago, I am debating giving it back to him to enable him to pay off the loan, i'd say its value is around £2500. Would this be allowed?

Thanks

rising_from_the_ashes

Sorry I'm a bit confused - who does the car actually belong to & who's name is the loan in?

k8te

My dad got the loan as he could get a better rate, I pay him each month and he pays the loan. The car is registered in my name

wba31

If you give the car to him this will be classed as giving away an asset. The repaying the debt to your father part would also be a preferential payment. Both actions could cause the DRO to be revoked.

If you proceed with a DRO, you would not be permitted to continue making payments to your father (I presume these payments cover the loan in his name?) This loan cannot be included in your DRO as it is in your father's name. If he took over the payments then said you owed him this money, the debt to him should then be listed in your DRO, or your father should agree to write the debt off.

Its not a nice situation. How long is left until it is paid off? have you sought advice from CAB, Step Change or NDL yet?

just noticed you said the car is currently worth £2500 (i previously read it as it being bought for £2500). Where have you valued the car? what does www.parkers.co.uk give as a valuation (don't pay for a valuation if it says you have to...)

mcjordi

well technically your father will legally own the car if he's paid for it with a loan in his name..

just because a car is registered to a person doesnt mean they own it...

wba31

mcjordi wrote: »

well technically your father will legally own the car if he's paid for it with a loan in his name..

just because a car is registered to a person doesnt mean they own it...

Although the loan payments have been made from client to father to loan company for the past 2 years... IS will see it that client owns the car and she has been paying dad off for it

k8te

Thanks guys, after talking to stepchange it would appear i cant go down this route, so looks like bankruptcy.