Hi everyone

My husband and I are currently about to apply for our sequestration and I have a question regarding car finance.

We recently traded in an our older car which was needing a lot of work done to it to pass its MOT which we couldnt afford and have taken on a different car not really any newer just less miles on the clock and in better condition. I always assumed that it was ok to pay for car finance when you were in a trust deed or applying for sequestration through advice we have been given by a few different sources.

My question is I have read through all of the terms and conditions of our contract with the finance company and there is a section called 'default' which says that if you were to become under sequestration or inslovent then that would class as a default and they would basically take the car back (not exact words as I dont have the contract in front of me at the moment but along those lines)
Will this happen? If we are paying all the payments and havent defaulted any. My husband and I have not signed anything yet and are not officially bankrupt at the moment but I'm just wondering that when we have completed the process is it likely the finance company will take the car back when they find out?

I'm now worried that we will end up with no car and will need to explain to everyone family/friends what has happened when I really didnt want to tell anyone about our bankrupcy as I'm so embarrassed to have gotten ourselves in this situation in the first place!

Any help would be appreciated

Thanks