Evans & Anor v Finance-U-Ltd [2012] EWCA Civ 1889 (25 October 2012)

Evans & Anor v Finance-U-Ltd [2012] EWCA Civ 1889 (25 October 2012)

The applicant has a real prospect of success in arguing that its rights under the bill of sale are not extinguished by the bankruptcy of one or both joint debtors, and that it may enforce its security notwithstanding proof in bankruptcy.

Citation
[2012] EWCA Civ 1889
Parties
Respondents: Evans & Anr; Appellant: Finance-U-Limited
Jurisdiction
England and Wales
Judgment Date
25 October 2012
Procedural Posture
Civil Appeal / Renewed Application for Permission to Appeal
Outcome
Permission to appeal granted
Legal Topics
Bankruptcy Effect on Secured Loans, Joint Debtors Liability, Enforcement of Security Post Bankruptcy

Case Brief

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Parties

Evans & Anr

Respondents

Finance-U-Limited

Appellant

Procedural Posture

Civil Appeal / Renewed Application for Permission to Appeal

  1. 1 Whether a finance company loses its rights under a bill of sale upon the bankruptcy of one or both joint debtors
  2. 2 Whether contractual rights under a joint loan agreement or bill of sale are extinguished by bankruptcy
  3. 3 Whether the finance company can repossess the vehicle after proving in bankruptcy

Ratio Decidendi

The applicant has a real prospect of success in arguing that its rights under the bill of sale are not extinguished by the bankruptcy of one or both joint debtors, and that it may enforce its security notwithstanding proof in bankruptcy.

Court Disposition

Permission to appeal granted

Orders

  • Permission to appeal granted
  • Applicant undertakes not to seek an order for costs in the event of success on appeal