i went BR last september so i am trying to help my friend in this situation, he has a car on finance but the car is registered to his mother, what will the OR view this as? thanks
If it is through a bank loan then the loan will be written off and the car therefore belongs to your friend. The car would then be at risk depending on it's value and your friends need for the car.
Who the car is registered to is irrelevant, it belongs to the person that has been paying the loan.
If it is on HP then the OR will have no interest unless there is equity in it. Again the V5 registration is irrelevant. If there is no equity the OR will have no interest in the vehicle. The OR may however, disallow any expenditure claim for the continuing repayments. Additionally the lender could repossess the vehicle irrespective of whether or not the repayments are up to date. If this is the case the car would be sold at auction and the shortfall can be included in the bankruptcy if you fill in the forms correctly.
im helping my mate with his BR
Posted - 29 March 2009 : 12:49:48
