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Who is the legal owner of a loan paid by another
Comments
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As far as her creditors are concerned then its her car.
Rob0 -
Again, in a separation issue I can see that proof of who did what and what was said could be awkward as one party could say it was a gift, the other a loan or out write purchase for the other to use unconditionally but as we're working together to save the car we're obviously both on the same side.
In this case I would expect the OR to view the car as what is was, a gift. Therefore it would be seized and sold with any money raised from the sale going to clear your OH's debts.
However, it's certainly worth fighting for it. You can make the case that as you paid for the vehicle in it entirety that you own it but have made it available for your OH to use and that is why the documentation is in her name. I don't think your case is very strong but you might get lucky.0 -
The other option would be to sit down and go through all her debts and try to work out payment plans for them all might be a good idea to try a debt charity to see how far gone the situation is.
Bankrupcy is a serious step and will effect her credit worthiness for many years and obviously if you see a future together it could have a knock on effect on both of you for example on mortgages and the like.
Perhaps she could sell the car and buy something much more modest then use the rest of the cash to clear some debt?
You also need to address as a couple how the debt has occurred and get on top of things so it doesn't happen again.
Good Luck
Ali x"Overthinking every little thing
Acknowledge the bell you cant unring"0 -
Sell the car, pay the debts, buy a cheap car to run around in. A nice car isn't worth a trashed credit file which will knacker up her life for several years.This is a system account and does not represent a real person. To contact the Forum Team email forumteam@moneysavingexpert.com0
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Sell the car, pay the debts, buy a cheap car to run around in. A nice car isn't worth a trashed credit file which will knacker up her life for several years.
That's the logical route- particularly if the value of the car would cover the majority of, or even all of, the debt. I could be completely wrong but my reading of the OP's post suggest to me that his issue for him is that he spent that money to buy his OH a car - not pay off her debts. Therefore it's a bitter pill to swallow that the car would be sacrificed. (No doubt made even worse by the initial depreciation) Perhaps if he comes to the realisation that the car is probably gone anyway he and his other half may resign themselves to that fate and sell it before the OR get his hands on it and it goes to auction.0 -
In this case I would expect the OR to view the car as what is was, a gift. Therefore it would be seized and sold with any money raised from the sale going to clear your OH's debts.
However, it's certainly worth fighting for it. You can make the case that as you paid for the vehicle in it entirety that you own it but have made it available for your OH to use and that is why the documentation is in her name. I don't think your case is very strong but you might get lucky.
If a person with money buys a car so that another person can drive it they have no choice but to register in the name of the usual driver.
Where the OP has a problem isEverything is in her name on the docs though .....
The key issue is whose name is on the invoice/receipt. My impression is that it will be hers and so its likely to be seen as a gift unless there is a good reason for OP to buy a car for someone else to drive ( eg if they were self employed and needed the driver to deliver/collect things for them). But a partner sharing the same address.....unlikely to convince.Few people are capable of expressing with equanimity opinions which differ from the prejudices of their social environment. Most people are incapable of forming such opinions.0
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