When our business went under we had a car on finance which the trustee was ok with as he had no interest in it, roughly £200 a month repayment. Although we hadn't missed a payment, the finance company repossed the car last month as we breached the contract and terms etc. As we need a car for work (consultancy work all over the UK) our son bought a car and we repay him, again roughly £200 a month. Thinking about it today I wonder if we have made a problem for ourselves, as our son is down as a creditor, and the standing order we've set up show us paying him monthly. Obviously he has all the paperwork etc to prove the money is for the car rather than us paying him back for the original debt which was a loan to the business. Sorry this is a bit long-winded but do you think it's worth phoning the trustee on Monday to explain/clarify or just keep our heads down and fill out the next ipoq when we get it in a couple of months?. Presently 4 months into bankruptcy without an IPA.
You are still allowed credit when BR but if you are borrowing more than £500 you have to declare that you are BR, which your son probably knows anyway.
If the trustee was ok with you paying £200 to the car finance firm then there shouldn't be a problem with you paying the same amount to your son.
It won't do any harm to inform the OR but I don't think that it is really necessary as you have just swapped one creditor for another and the new creditor is aware you are BR.
Have we made a problem for ourselves?
Posted - 08 January 2011 : 18:08:19
