Kept Car Through Bankruptcy, Haven’t Paid in Years — What Can Finance Company Do Now?

ReasonableEndeavours

Hi all, looking for some advice on a complicated PCP car finance and bankruptcy situation.

Several years ago, I took out a PCP agreement but quickly ran into financial problems. I made only the first couple of payments before stopping entirely. A couple of years later, I was made bankrupt. The Official Receiver declared they had no interest in the car, and ever since then I’ve continued using it without any contact from the finance company — until now.

Now out of the blue In December 2025, I suddenly received a missed call from finance company asking me to get in touch. This is the first contact in years, so I’m trying to understand what they can or can’t do at this stage / concerned they have finally realised the situation.

Timeline

• 2019: Took out a 4-year PCP agreement. Made only the first few payments, then stopped completely.
• 2020–2022: No contact from the finance company apart from generic annual statements.
• 2022: Declared bankrupt.
• The Official Receiver sent a letter stating:
  “I, [Name], the Official Receiver and trustee of the above-named bankrupt’s estate, disclaim all my interest in the hire purchase agreement, reference number [X], between [me] and [finance company] for the [make/model], registration [X].”
• This was the only communication I had on the car from official reciever.
• Before/during/after bankruptcy to date I had zero contact with the finance company (no calls/emails/letters), and I never contacted them either.
• 2023: Automatically discharged from bankruptcy.
• 2023–2025: Continued using the car, still no communication.
• Dec 2025: First missed call from the finance company in years – since the year I took out the car finance (2019).

I also moved house years ago (I still have mail passed to me from old address from a friend), so they wouldn’t know my current address. The car is kept in a detached garage.
The V5C has remained in my name the entire time (understanding this only reflects keepership, not ownership).

Car & Finance Details

• Current car value: approx. £8k (based on online estimates)
• Total finance balance shown on the last statement: approx. £30k
• PCP agreement with a balloon (though the latest statement didn’t list the balloon amount).
• The PCP contract has technically ended in 2023? (4-year term from 2019).
• Car still well-maintained and reliable. So is a good run around for me.

Credit File Oddities

• 2020–2023: Marked as missed payments throughout.
• 2024: Marked as AR (arrangement to pay), even though I never had any communication or arrangement with them.
• 2025: Entire year marked as OK (clean payments), which makes no sense given no payments have been made.

My Understanding re: Bankruptcy

My understanding is that because the finance debt originated before the bankruptcy order, the liability to pay it should have been fully included in the bankruptcy. In other words:

• The debt should have vested in the bankruptcy estate.
• Bankruptcy should have extinguished the contractual liability.
• The Official Receiver did not require me to continue payments.
• No attempt was made to repossess the car then, nor was I told to return it.

I’m unsure whether the finance company’s extremely long period of silence affects this now.

My Questions

1. What can the finance company realistically do at this point?
2. Can they still demand payment or repossession years after the bankruptcy discharge?
3. Does their lack of action for so many years weaken their position?
4. What are my options now that they’ve finally contacted me? (I definitely cannot pay the £30k balance.)

Any insights would be hugely appreciated. I know it’s an unusual situation and very much a self-inflicted mess, but I’d really value some guidance.

Thanks in advance.

DE_612183

I guess as the finance agreement has never technically completed, then the car is still theirs.

The debt as you say in cleared, so nothing to pay for the 6 years free car rental you've had.

Others may have more clearer advice.

Of course they could be ringing to see if you want to buy a new car on finance - sales call? - or did it not sound like that sort of call.

Is your phone number the same as it would have been in 2019?

Keep_pedalling

Not sure if the debt is cleared on secured finance when you don’t keep up the payments or hand the car back. You have never owned the car and it still belongs to the finance company. The balloon payment was due after you discharge as you still did return their property.

They have obviously messed up big time by not taking the car back once the payments stopped but they still own the car. You said the OR said you can keep the car but as it was under PCP payments should still have been kept up in order to avoid it being taken back.

ManyWays

My comments are:

• The debt should have vested in the bankruptcy estate. The term "vested in" applies to assets, not liabilities, this may sound picky but its better not to use legal terms incorrectly. It would be correct to say that this car finance is "a bankruptcy debt". 
• Bankruptcy should have extinguished the contractual liability. It did, but the bankruptcy did not change the ownership of the car, which remains the property of the lender and it did not remove the lenders right to repossess the car
• The Official Receiver did not require me to continue payments. That isnt part of the ORs role, you may not have wanted to keep the car, in which case handing it back or having it repossessed could have been the right option for you.
• No attempt was made to repossess the car then, nor was I told to return it. That was an error by the car finance company, but I dont think it changes the ownership of the car or the right to repossess it. I hope you may be able to use this and other arguments it to reduce the amount you may have to pay if you want to keep it to the current value of the car. 

As I said before on your previous thread: 

I think you urgently need good debt advice about this, before you talk to the lender. 
I suggest your local Citizens Advice or phone National Debtline on 0808 808 4000. Points that may help, you can argue that a default notice should have been issued in 2019, you can point out the debt has been cleared by your bankruptcy, you can say you have never been sent Notices of Sums In Arrears (I think those apply to car finance, but I am not sure as they arent usually relevant as its uncommon for a lender to just forget about not being paid). But nothing here is likely to get round the facts that the car does not belong to you and that the lender is entitled to repossess it. 

ReasonableEndeavours

One slight thing to add encase it is useful:
The car i got on finance 6 years ago was a second hand car, it was already 3 or 4 years old, so is not circa 10 years ol

ReasonableEndeavours

ManyWays said:

My comments are:

• The debt should have vested in the bankruptcy estate. The term "vested in" applies to assets, not liabilities, this may sound picky but its better not to use legal terms incorrectly. It would be correct to say that this car finance is "a bankruptcy debt". 
• Bankruptcy should have extinguished the contractual liability. It did, but the bankruptcy did not change the ownership of the car, which remains the property of the lender and it did not remove the lenders right to repossess the car
• The Official Receiver did not require me to continue payments. That isnt part of the ORs role, you may not have wanted to keep the car, in which case handing it back or having it repossessed could have been the right option for you.
• No attempt was made to repossess the car then, nor was I told to return it. That was an error by the car finance company, but I dont think it changes the ownership of the car or the right to repossess it. I hope you may be able to use this and other arguments it to reduce the amount you may have to pay if you want to keep it to the current value of the car. 

As I said before on your previous thread: 

I think you urgently need good debt advice about this, before you talk to the lender. 
I suggest your local Citizens Advice or phone National Debtline on 0808 808 4000. Points that may help, you can argue that a default notice should have been issued in 2019, you can point out the debt has been cleared by your bankruptcy, you can say you have never been sent Notices of Sums In Arrears (I think those apply to car finance, but I am not sure as they arent usually relevant as its uncommon for a lender to just forget about not being paid). But nothing here is likely to get round the facts that the car does not belong to you and that the lender is entitled to repossess it. 

Thank you!

Someone suggested i post in this Bankruptcy & living with it section specifically

I appreciate your advice and recommendations

And i will defiantly take you up on speaking to those

I guess what I’m trying to do is figure out what my outcome options are for when i eventually engage with them (depending on what they do and say next / in the near future)
I'm very much preparing my game plan and trying to ensure i follow the right approach and have as much of the ins and outs before hand to build my strategy