QLD Car loan in husband's name registered to someone else.

[kjmac]

Hi,

My husband and I have been dealing with MyBudget to get our finances back on track and they suggested that he enter into a Part 9 Debt Agreement. He is happy to do this but he has a loan for a car that we have given to his sister and it is registered in her name not his. His loan provider does not know that the car is registered in her name and the people at MyBudget told him that if the loan providers find out he can be prosecuted!

Is this true? And what is it that he will be charged with?

We are both very concerned about this as he is the primary wage earner in our household and I personally can not afford to pay of his debts being unemployed and all.

Thanks

 

[Rob Legat - SBPL]

In practical terms he won’t be prosecuted. It is technically possible to have him charged with a fraud based offence if there’s sufficient evidence to indicate he obtained the loan by deceit - but the police show extremely little interest in this, especially if there isn’t a significant loss.

What’s more likely is that the lender will require payments to continue to be made (as secured creditors are outside the terms of the Part IX). If you don’t, or you claim that you don’t have the car anymore, then they can track it down and repossess it.