Car and bankruptcy

Lewlew123

I owe a lot of money and Eventually Im sure my creditors will file for my bankruptcy. I have a car I’m registered to on the vo5 but the owner of the car is my Dad who name is on the Sales slip /invoice as the buyer
But part payment came out of my bank a year ago to the car dealership.
Basically I owed around 17 k to my dad but instead of me paying him back he said I could use the money for a car but still owe him the money and pay at a later date as long as the car ownership was in his name
Also he part exchanged his car within this deal
So I payed roughly 15k from my bank he part ex his car which was around 7k so total vaule of car I brought was 22k and now I’m
Paying him back instalments everymonth been paying around 6 months going take 5 years to pay back
The car unfortunately has dropped a lot in vaule and is around 13k now

The question I want to ask . As part of the money came out my bank does that mean I will lose the car ? Or will he get his part Exchange part of payment back
The part ex is on the invoice
Even tho the invoice is in his name ?
Thankyou and sorry for the tricky question

Minkym00

Even though your dad’s name is on the invoice you have a 68% beneficial interest in the car. This takes you over the £1000 limit for a car as a bankrupt and so either your Dad can buy out your interest in the car, or it’ll be sold and he’ll get 32% of the proceeds (after the cost of sale).

KeepOnKnitting

Tricky question. It's a shame you didn't pay your Dad back the debt with the money, as then he could have bought the car with his own money and hired it to you. Then when you default on your hire of the car for bankruptcy, he could repossess the car.

You do know that you won't be able to pay your Dad back this money once bankrupt as the debt will be wiped out by the bankruptcy? The OR is not going to allow you money to pay your Dad in preference to your other creditors.

I am sorry for your situation. You are learning lessons the hard way here.

fatbelly

It's very unusual for a creditor to issue a statutory demand and then follow through with a bankruptcy petition. I don't know why you're so confident it will happen. Do you owe a large sum to HMRC?

You are sitting on a hugely depreciating asset (bought for 22k, now worth 13k so 9k loss in a year) would you be better selling it, buying something for £1000 and trying to deal with your debts?

How much do you owe in total?