Resolved Question

My father in law has declared himself bankrupt, but my car is on hp in his name, do i still need to pay this.?

and if i do can the finance company take it off me.
dont think he would have put it on the bankrupt list.

Best Answer - Chosen by Voters

If your father in law declared BK he must list all his debts. This includes the car if his name is on the loan.

If he fails to re-affirm the loan with the judge, then he has to turn the car over to the lender.

If he re-affirms the car, he will have to make the payments on it.

If you are listed on the loan application also as signer or co-signer, then 100% of the responsibility to repay the loan will be up to you, if you do not pay, they will come get the car and you will be liable for the deficiency balance after they recondition and sell the car.

57% 4 Votes

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Other Answers (7)

• Dixie and L's answers are actually true when combined. The issue is that if your father in law has already declared the BK then the courts may not allow the loan to be made exempt from the BK. If the BK was a Chapter 7, then he can re-affirm the debt and you can continue to pay. If it was a 13, the courts may try to mandate that the loan company lower the balance, and if they are unwilling, you may lose the car. The end result is that one way or another someone must make payments on the car or it will be repossessed. I recommend you have your father in law ask his BK attorney the best way to keep the car allowing you to make payments. Anything done on this loan will have to go through the courts since the debt is in his name, only then can you determine if you can keep it, and who and how much you will have to pay.

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  29% 2 Votes
• If on hire purchase, until the last payment (plus option to purchase fee) is paid, the finance company owns the car, so it can't be taken into account as an asset. If both of you talk to the finance company, it should be possible to transfer name on agreement to you.

  0% 0 Votes
• If it's in his name you can expect the car to be repossessed by the finance company.
  
  Get in touch with them to ask how to have the agreement transferred to you to avoid this happening.

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• I think that he can exempt the car from his bankruptcy - which means that he intends to continue to make the payments, they can't take it for repayment and it isn't protected under bankruptcy laws.

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• Inform the finance company and get their advise on how they can transfer ownership of the car.

  14% 1 Vote
• It's in his name, regardless of who pays. I think you'll find they'll come and take the car away.

  0% 0 Votes
• They will take away the car, best contact the finance company.

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