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set1077
Starting Member
United Kingdom
34 Posts |
 Posted - 12 June 2011 : 12:06:01
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| Myself & partner intend to file for bankruptcy. At the moment we have a car worth about £800.00. It is costing us a fortune in maintenance to keep it on the road. My mum & step dad are letting me have part of my inheritance money early and I will be buying their car off them with it, however I intend to put it in my mums name and insured in my mums name with myself & partner as named drivers until the bankruptcy is over. In the meantime we will sell our car and hopefully file for bankruptcy in 6 months time when they won't ask questions. With the new car in my mothers name and as named drivers, will this hold up? If I say she lets us borrow it etc?? |
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moodybluetwo
Junior Member
156 Posts |
Posted - 12 June 2011 : 12:40:06
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| I think they go back 12 months with regard to previous vehicles. Another point to remember is you may be allowed to run your car with any income you may have assuming you have any….if you don’t run a car in your name you cannot claim that allowance and that surplus could go towards an IPO/IPA. |
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set1077
Starting Member
United Kingdom
34 Posts |
Posted - 12 June 2011 : 12:48:22
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We literally cannot afford to run the car we have as maintenance / fuel / tax is so high. However my parents car is cheaper on all those points.
I think I would be able to safely re-appoint the expenditure of the newer car onto other areas so that it doesn't affect our outgoings being less.
My main point of concern is that they wouldn't be able to touch the newer car if it is in my mums name even though we will be named drivers and actively using the car. Also would they accept the fact that we kept the money from the sale of the old car for fees of bankruptcy as it will only be £650-800 ? |
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Viki.W
forum expert
United Kingdom
2211 Posts |
Posted - 12 June 2011 : 13:15:29
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Hi set1077,
You can sell your car for your bankruptcy fees, that is not a problem and lots of people so this.
You need your expenditure for the new car if needed for work purposes, you won't be able to lose it elsewhere as you are given a tight budget.
Keep it above board, if the car is under £2000 and you need it, you can keep it anyway.
I suggest you speak to an expert to chat everything through.
Viki Warbrooke
Vincent Bond & Co
If you would like free advice on all options available and help with your bankruptcy petition please contact me at http://www.vincentbond.com/about_us_Viki_Warbrooke.asp
Please read my experience of debt via my blog at http://vikiw.blogs.iva.co.uk/ |
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set1077
Starting Member
United Kingdom
34 Posts |
Posted - 12 June 2011 : 13:38:12
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I know wht your saying Vicky and I would prefer to keep things above board.
However we find ourselves in the position that we need a car but literally cannot afford to keep and run the one we have. Our only clear option of being able to run a car is having the newer one.
I may be completely wrong on this so forgive me for questioning but judging by the links to expenditure I should be able to easily appoint all our income (which is just about manageable, one barely average income for the three of us) on allowed outgoings? Even without accounting for the car. This is because we manage on less day to day than what the lists say you are allowed, so can I not do this and maxamise the allowence they let you have on our expenditure list to cover our income?
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Viki.W
forum expert
United Kingdom
2211 Posts |
Posted - 12 June 2011 : 13:54:53
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It seems a bit odd that you are taking money off your Mum to give back to your Mum for her car, or am I getting that wrong?
Can't you just have use of the car?
Viki Warbrooke
Vincent Bond & Co
If you would like free advice on all options available and help with your bankruptcy petition please contact me at http://www.vincentbond.com/about_us_Viki_Warbrooke.asp
Please read my experience of debt via my blog at http://vikiw.blogs.iva.co.uk/ |
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set1077
Starting Member
United Kingdom
34 Posts |
Posted - 12 June 2011 : 14:01:36
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Sorry I should have been more explicit.
Basically my mum & step-dad know the problems we are having with our car so as they were thinking of changing their car they offered it to us. But there is no way we could afford to buy it off them. So what they said was that i could have a bit of my inheritence early that they have set aside to pay them for the car and then it will be mine. The only pronlem being the bankruptcy so I asked my mum if she would put it in her name until the bankruptcy is over.
If they didn't do this for me then we would probably have to sell our old car anyway due to cost issues and we would be left car-less. But this way we have a newer car and is cheaper & much more affordable to run. |
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set1077
Starting Member
United Kingdom
34 Posts |
Posted - 12 June 2011 : 14:07:10
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Or i suppose you could put it another way and say that they are giving me the car but after they are gone I'll have less inheritence than the rest of the children.
My issue is though is it safe staying in my mothers name until we are discharged from bankruptcy.
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Viki.W
forum expert
United Kingdom
2211 Posts |
Posted - 12 June 2011 : 14:33:21
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I presume that the car is worth more than £2000.
If the car is in your Mum's name then nothing has changed and it's still hers. Tell her to hold on to it until you are discharged and then if she wants to give you it as part of an early inheritance then that's fine.
Viki Warbrooke
Vincent Bond & Co
If you would like free advice on all options available and help with your bankruptcy petition please contact me at http://www.vincentbond.com/about_us_Viki_Warbrooke.asp
Please read my experience of debt via my blog at http://vikiw.blogs.iva.co.uk/ |
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debtinfo
forum expert
2826 Posts |
Posted - 12 June 2011 : 15:43:18
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| If you are using it the majority of time and the main insurance is in your mum's name with you as a named driver, Is that not insurance fraud? |
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Niobe
Administrator
United Kingdom
4590 Posts |
Posted - 12 June 2011 : 16:15:16
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I don't agree with that. Our car is in my husbands name with me as a named driver and I drive it more than he does. Should not matter who drives the car if you are both on the insurance.
The world is broken, halos fail to glisten
We try to make a difference but no one wants to listen
Hail the preachers, fake and proud
Their doctrines will be cloud
Then they'll dissipate like snowflakes in an ocean
Jan
xxx |
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debtinfo
forum expert
2826 Posts |
Posted - 12 June 2011 : 16:24:42
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| hmmm, i ask the question as i remember this being in the news somewhere called fronting, where one person who almost never drives the car goes on the insurance as the main driver instead of the onw that drives it all the time, Insurance though is not my speciality? |
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RHB
Senior Member
1159 Posts |
Posted - 12 June 2011 : 16:29:42
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| If you are not living at the same address as the main person it can invalidate insurance so be careful. I never realised this & when my ex left drove around as the named drive. Luckily I didn't have an accident but at renewal time obviously I was told I hadn't been insured. |
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Niobe
Administrator
United Kingdom
4590 Posts |
Posted - 12 June 2011 : 16:34:04
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My hubby is down as the main driver on our car but I am the one who uses it the most. OK, we do live at the same address so I don't know if that makes a difference but surely if you are down as a named driver you should be able to drive the car as often as you like.
The world is broken, halos fail to glisten
We try to make a difference but no one wants to listen
Hail the preachers, fake and proud
Their doctrines will be cloud
Then they'll dissipate like snowflakes in an ocean
Jan
xxx |
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RHB
Senior Member
1159 Posts |
Posted - 12 June 2011 : 17:36:41
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| That's the point though Jan, presumably they WON't be at the same address? |
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Skippy
forum expert
United Kingdom
3290 Posts |
Posted - 12 June 2011 : 18:05:53
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It's fine if you're at the same address but if not you're on dodgy ground so I would be careful - you don't want to take the chance of driving without insurance, it really isn't worth it.
View my blog at http://skippy13.blogs.iva.co.uk/
Only when the last tree has died, the last river has been poisoned and the last fish has been caught will we realise that we cannot eat money.
Last IPA payment made on 28th June 2010 - it's over at last! |
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Car in Mothers name?
