Answer: I am unsure if this would be seen as fraud, but it is preferring a creditor and could be the basis for a restriction order, or the Receiver reversing the transfer. If the car has a value, then it gets even more complicated as the Receiver could want the car as well.
How much are we discussing here? Was you husband going to try and continue paying this during his bankruptcy?
In the end I would think this is going to be an issue in your husband's bankruptcy. And the fact your father had the balance placed on his account could very well hold him liable for this amount if the Receiver does not claw back the transfer.