Car Ownership Rights

[schiehallion]

I have recently bought a car for my daughters use (on finance i pay monthly)so she can continue her nursing training and uni.
The car is registered to her but i make all payments. she has now been told that as she is a bankrupt the car will be taken from here as it is classed as an asset. where do we stand in that case?. Can they take the car which i am paying for. this is in Scotland.
Thank you in advance for any info.

[dollie65]

if its your name on the finance papers i would have thought the car is legally yours regardless that the car is in your daughters name...

[Baldric]

I think the name on the car document is the 'Registered Keeper' rather than the Owner of the Vehicle.

[tonyav]

The log book is for the registered keeper but that does not mean that they are the actual owner, and if it's on finance I believe that it actually belongs to the finance company until most of the payments have been made ( you may have to check that out though ).

[DangerUXD]

Yes as above, I'd say you are the legal owner. Also if there is finance outstanding they won;' take it anyway. Just show whoever said it will be taken the finance agreement and state that she is not the owner merely the keeper.

[jd_1984]

Be careful here. Your obligation is with the re payment to the finance company, an obligation that you will still be expected to fulfill even if the car is taken away from your daughter.
I dont know if this automatically means that you can stake a claim to the ownership of the vehicle (certainly not in the DVLA's mind). Your daughter is th registered keeper/owner of the vehicle, therefore could well be viewed as her asset.
Get some legal advice, see what options you have re staking a claim to the vehicle and good luck

[Mamyalynne]

https://www.askthe.police.uk/content/Q743.htm

[jd_1984]

mamya's link is useful but does it answer this question specifically.
I have taken out finance for a car that my girlfriend at the time used and registered her as the keeper. We broke up and I was left with the burden of the outstanding debt owed on the loan and told that I had no legal rights to the vehicle i.e to take it off her and sell to offset against the loan.
The cow still drives it today!! It cost me £2150 in outstanding loan payments

[Peter Pedant]

Oh dear when did she go bankrupt ?

From what you say I think it is clear that you are the owner and she is the registered keeper. Also remember the finance co has a claim on the car too

The bit of law that says cars can have multiple owners with different rights is a bit called 'Equity' and is strong in English Law and is rather weaker in Scots Law and so you need more specialised advice.

I mean how on earth did the trustee in bankruptcy get to think she had a car ? When your daughter was asked if she had a car surely the answer should have been "No but my mother does..." or No the car I drive is my mother's.

[ABerrant]

The current owner of the vehicle is either the finance company or the person having obtained the loan, depending on the type of loan.

http://www.fla.org.uk/filegrab/FLAGuidetoTitleforInsurers-January2012.pdf?ref=730

If the finance agreement is in your name then your daughter has no legal title to the car, it is not her asset and the insolvency practitioner needs to be made aware of this fact.

If the agreement is in her name but you are making the payments on her behalf then, depending on the type of loan (as indicated above), the owner is either the finance company or your daughter. The hiring owner can usually take back the vehicle if a bankruptcy order is made.

In any event, whoever is dealing with the bankruptcy must be given access to the agreement to ascertain legal ownership.

[Mamyalynne]

I agree my link was not the full answer , but put simply - your daughter does not own the car, therefore it is not one of her assets.

[hc4361]

Is the car insured in her name only?

Is the finance a bank loan or any other loan that could be used for any purpose? Can the car be considered a gift to your daughter?

[schiehallion]

Thank you everybody you have given me lots of room for thought. I took out the loan from a bank via the car dealership and it was specific to the car. my daughter went bankrupt when her partner did a runner after she became pregnant and left her with a house they had gotten a mortgage on she had to let the house gobecause alone she could not make payments so the house was repossesed.
Thank you all again.

[themas]

You took out the loan in your name. Did you also get the purchase invoice made out to you in your name (i.e. without your daughter also being named on it? If you did, the car is yours (assuming it was an ordinary finance loan & not hire purchase - if it was HP then the finance company is the owner until all payments are made). The fact that your daughter is registered as keeper by DVLA is immaterial - you only have to look at the logbook to see it says it is not necessarily a record of ownership.

If the above is the situation, then under English bankruptcy law the Official Receiver could not take the car. Scottish law is different & you may need special advice on the position, but I do not see how it could be said the car is an asset of your daughter.

[schiehallion]

Thanks again everyone.