| T O P I C R E V I E W |
| baxi |
Posted - 12 July 2012 : 16:34:12
Hello all,
A friend of mine is being made bankrupt by a company. He has a car worth around £5000-6000. He received somee money from a car accident claim through the at fault drivers insurance company. The money went into his friends account rather than his. His friend then withdrew the money and gave it to him in cash. My friend then put the money into his bank account and paid the finance off in full for the car using his debit card for that account.
He now wants to say that he sold the car to a friend as he was already struggling with debt and he paid the finance off so it was one last thing to worry pbout paying out. There was no surplus money left over.
He is then going to send the log book off dated when he paid the finance off and cancel his car insurance. He will then get his friend to insure the car and get him put down as a named driver and pay him the insurance cost.
I've advised against all this but he has already set the ball rolling.
Is there anyway the OR could find out about this?
Thanks in advance for your help. |
| 9 L A T E S T R E P L I E S (Newest First) |
| year 2029 |
Posted - 12 July 2012 : 22:56:10
From my personal experience.
I was advised prior to bankruptcy that if I had a vehicle that was worth too much, it would be sold, and if I needed a vehicle for work, I would be allowed approx £1000 for the purchase of a replacement.
That is also backed up by the OR's case manual amended September 2011.
I managed to keep my vehicle even though it was valued at around £2500. (October 2011)
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Views expressed are my own personal views, based on what has happened during my own BR process unless otherwise stated.
Professional advice should always be sought. |
| debtinfo |
Posted - 12 July 2012 : 22:18:09
£1K is the standard rate but the guidance does say that exeptions should be made for vehicles used for business or to travel exceptional distances where a need can be shown |
| Skippy |
Posted - 12 July 2012 : 21:12:24
Hopefully Viki or Debtinfo will be able to confirm about the compensation.
As per posts from Viki and Debtinfo recently the current limit for the value of a car is nearer to £1k.
View my blog at http://skippy13.blogs.iva.co.uk/
The more I have to do with humans the more I think that the world would be a better place if it was run by animals.
Last IPA payment made on 28th June 2010 and I'm now looking forward to getting married in September 2012 - I'm proof that you can go BR and come out the other side. |
| year 2029 |
Posted - 12 July 2012 : 19:48:02
Hi,
I thought personal injury compensation was exempt?
In my BR I was allowed a vehcile of about £2500, (October 2012),
But what others have been posting recently that may have reduced to about £1000.
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Views expressed are my own personal views, based on what has happened during my own BR process unless otherwise stated.
Professional advice should always be sought. |
| baxi |
Posted - 12 July 2012 : 19:25:02
Hi,
The insurance payout was for personal injury compensation. I agree with you regarding not lying to the OR but i think his mind is made up. He needs a car for work as he is self employed plumber and needs to transport tools etc. Is the limit still around about £2k to keep a car? |
| year 2029 |
Posted - 12 July 2012 : 18:12:07
Just my take on things,
Whatever way I look at it, its fraud.
Like debtinfo says, the choice is his, but if he goes ahead with it, he's going to have to lie at some point on his statement of affairs.
If he then gets caught, the implications as debtinfo has said, can be severe.
Just to clarify, was the insurance payout for compensation/personal injury? Or something else?
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Views expressed are my own personal views, based on what has happened during my own BR process unless otherwise stated.
Professional advice should always be sought. |
| debtinfo |
Posted - 12 July 2012 : 17:43:26
He has to make his own choices, all you can do is remind him that perjury can carry a prison sentence |
| baxi |
Posted - 12 July 2012 : 16:59:45
Hi,
No he's received a letter saying he is being made bankrupt but i don't think he has a confirmed date yet. |
| year 2029 |
Posted - 12 July 2012 : 16:53:52
Hi Baxi,
Is this 'friend' actually bankrupt yet?
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Views expressed are my own personal views, based on what has happened during my own BR process unless otherwise stated.
Professional advice should always be sought. |
