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Worried.w
Starting Member
6 Posts |
 Posted - 04 May 2010 : 15:28:25
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If I was to sell my car to my mother, for money owed to her, but was still using it and paying insurance on it, would there be any problems as far as the bankruptcy was concerned?
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Bridgewood
Junior Member
United Kingdom
222 Posts |
Posted - 04 May 2010 : 15:37:43
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Hi Worried
If you were to transfer your car to your mother in exchange for money owed to her it would be classed as a preference if you went bankrupt. In other words you will have put her in a better position than your other creditors.
The OR could apply for this transaction to be set aside and either take the car back and sell it, or get your mother to pay a fair price for it.
The issue to consider is whether or not you would lose the car in the event of bankruptcy - usually determined by how much it is worth, and whether or not you need it
Hope this helps
Bridgewood specialise in helping people deal with their debts and make the most of their financial situation - providing free, no obligation debt advice.
We can also setup a complete range of solutions including debt management plans, IVA and bankruptcy support. |
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Worried.w
Starting Member
6 Posts |
Posted - 04 May 2010 : 21:06:44
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The amount I owe her relates virtually to the forecourt value of the car and I plan to do this before I declare bankruptcy. My need for the car is minimal as I do not have a job at present and luckily my mother lives very close by. She has said I can use it for job interviews etc.
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Reviva UK
Advanced Member
United Kingdom
2452 Posts |
Posted - 04 May 2010 : 21:28:54
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What is the value of the car?
Paul Johns
Bankruptcy Specialists
Reviva UK
www.revivauk.com
Real People ..... Real Debt Solutions |
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Worried.w
Starting Member
6 Posts |
Posted - 04 May 2010 : 22:36:22
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£5600 which is roughly what I have borrowed from her since losing my job in Nov, I believed I would be able to get another job reasonably quickly at the time but as it turns out I still have not managed to find one.
Can you also tell me with in what length of time is a previously sold asset taken into consideration?
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Reviva UK
Advanced Member
United Kingdom
2452 Posts |
Posted - 04 May 2010 : 22:57:48
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The or will look very closely at the car and if you sell it you must be able to show where the money has gone. If you give the car or transfer it to your mum I am sure you will have grief and the transaction will be overturned.
You actually run the risk of a bru and lose the car as well.
I suspect that you would be better to downgrade to a 2k car and use some of the balance for the court fee.
Paul Johns
Bankruptcy Specialists
Reviva UK
www.revivauk.com
Real People ..... Real Debt Solutions |
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Worried.w
Starting Member
6 Posts |
Posted - 04 May 2010 : 23:47:11
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My main debt is approx 25K to the bank which my ex husband has left me with. Without a job I can see no way of paying it hence me considering bankruptcy. I do not own my own home and have very few possessions of any value apart from my car.
At the moment the bank appear to be patient in terms of they are chasing me for payment but not taking any other action.
Can the bank force me into bankruptcy and if so would I still be liable for costs?
My preferred route out of this is to make a monthly payment once I regain employment. However I realise that the pay back period on that basis will take many years.
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Bridgewood
Junior Member
United Kingdom
222 Posts |
Posted - 05 May 2010 : 09:17:09
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Hi Worried
The bank could issue a bankruptcy petition, but it is very unusual.
If they did, they would pay the costs of it.
It may be appropriate to speak to CAB or similar before you do anything
Good luck
Bridgewood specialise in helping people deal with their debts and make the most of their financial situation - providing free, no obligation debt advice.
We can also setup a complete range of solutions including debt management plans, IVA and bankruptcy support. |
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Richard P
Senior Member
United Kingdom
1701 Posts |
Posted - 05 May 2010 : 11:13:27
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Hi Worried
from someone who has had to petition for bankruptcy, i went through the emotion of wanting to pay back of all my debts, but do you really want to be saddled with a monthly financial noose for the next 10 Years or more.
The bank are understanding at the moment but the wind will change quite rapidly
You have got to look after you and yours.
Two of the forum experts have posted on your thread, which i see as an invite to make contact with them both, once you have had the chance to informally chat, you can then decide if either of them are able to help you and your circumstances.
I found talking to one of the experts so reassuring and it helped me to understanding the whole process. I was then able to get all of my ducks in the right order so nothing was left to chance.
good luck regards Richard |
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Topic |
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Car
