I appreciate that things work out differently in the UK but usually a credit check made by the dealer before paperwork had been completed would have shown up the bankruptcy. That would have been enough to cancel the agreement before signature. There is such a thing as a 30 day cooling off period which I assume the dealer is trying to enforce.

The loan could go through on your dad's name alone and the car but all this might make getting an insurance policy complicated. As it would stand your dad would own the car, be the registered owner and have a loan in his name. If your fiance and him had a big row then your dad might want the car back. You have to think about these things sorry!

It doesn't matter who bought the car if it is faulty the dealer has to repair it. It is his responsibility under sale of goods act or retail sale or any other kind of customer protection or guarantee given with the sale. Such paperwork would enable the sale to be cancelled but if the dealer has already sold your trade in you may have to accept a cash back deal.

If you did a sign and drive deal then yes they can do this. Dealerships go on the information you provided and in your application. Not disclosing the bankruptcy upfront meant they took the information and gave you the car on good faith. The fact that it now has a mechanical problem after the deal is not a valid reason to back out of the deal. Really not much has changed. Your father still qualifies for the car so they are still willing to give it to you. No one wants your name on the loan because of your bankruptcy. The fact that no one wants you on the car indicates that this is fresh on your credit report because usually credit card companies will issue cards pretty quickly after a bankruptcy because you have no debt and cannot file again for a period of years. You should have had the car checked out before you bought it to make sure that it was running well. If you are lucky there is a warranty with the car which will fix the problem for you. If you didn't get the warranty then you may have to pay for the repairs. As for getting out of the loan and purchase. You can see if your state has the 3 day rule that allows you to back out of a sale or purchase within 3 days. In which case you may be able to get your old car back and leave this deal behind.