QLD Car Finance in Parents' Name - Will Car be Repossessed?

[trent grose]

I have recently filed for bankruptcy and I have a vehicle registered in my name but the car finance is in my parents' name and the payments are from their account every month. The vehicle is security for the loan. Is their a possibility I could lose the car or is it physically impossible because it's financed and evidently is owned by my parents?

There is about 32k owing on the loan which is perfectly up-to-date with repayments and the vehicle is worth about 28-30k if sold so there is no equity anyway. I await for your guidance.

Cheers!

 

[Lance]

Hi Trent,

If you didn't secure your other debts using the car, they shouldn't have a right to reposes it. I mean to say if one of the debts was a loan you took out using the car as security then the creditor my be able to recover the debt by taking the car.

You might want to see if you can list your parents as a secured creditor for the car. I'm not sure if that can be done but it might be worth investigating.

 

[trent grose]

Hi Trent,

If you didn't secure your other debts using the car, they shouldn't have a right to reposes it. I mean to say if one of the debts was a loan you took out using the car as security then the creditor my be able to recover the debt by taking the car.

You might want to see if you can list your parents as a secured creditor for the car. I'm not sure if that can be done but it might be worth investigating.

That's the thing. The only thing tying me to the car is the rego papers but my parents' names are on the finance and the finance is secured and is being paid. No worries at all, so could they still take the car?

 

[Shawna Davis]

If the car finance is in your parents name and all payments are up to date the car can not be repossessed because legally the car belongs to your parents so rest easy, it will not be repossessed