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year 2029
Average Member
590 Posts |
 Posted - 24 November 2011 : 18:58:30
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Asset disposal.
My question is about me disposing of an asset. I have already declared bankruptcy a few months ago, and the asset in question was a car that I paid for, for an ex some 16months or so before I was declared bankrupt. That original car was never registered in my name, and it has now since been sold, and another car purchased. Can the OR claim all the money that I paid for that original vehicle from my ex? |
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Richard P
Senior Member
United Kingdom
1701 Posts |
Posted - 25 November 2011 : 11:27:29
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reluctant to answer the question
as I feel that you know by posting the thread what should / could have been done or the interprettation that others may make.
The official receiver is tasked with realising assets for the benefit of the creditors.
Good Luck Richard,
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year 2029
Average Member
590 Posts |
Posted - 25 November 2011 : 12:33:14
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Hi Richard,
Thanks for replying.
Your reply seems somewhat 'cryptic', or are reading something into it I never intended.
I am asking the question, as is I guess mostly the case after someone is declared bankrupt (me), that rumours are rife around what is and isnt going to happen.
As I said, this involves an 'ex', who I have heard through the grapevine has said she has to 'cough up' a load of money.
I was wondering how they would be liable? And how could it be enforced when they have sold that original car, and now have a replacement.
The car was bought by me in good faith, whilst we were still together, and a considerable time before I went bankrupt. Said ex, has also been an ex for approx 10months before going bankrupt.
I hope this may clarify my question.
I must also state that there is no intent to hide or deceieve.
Regards,
year 2029 |
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year 2029
Average Member
590 Posts |
Posted - 01 December 2011 : 08:03:32
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So, no more replies-disappointing.
I have since found out that it comes under a '2 year' rule. So at it was 'gifted' the value needs to be repaid. Seems unfair to me, as I had no idea at the time I was going to go bankrupt, and the vehicle was given and accepted in good faith.
Anyway, I think I have more complications to go.
Regards,
year 2029 |
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RHB
Senior Member
1159 Posts |
Posted - 03 January 2012 : 07:49:46
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| It also depends on whether you were insolvent at the time of making the gift, The onus is on the OR to show that was the case so it is possible that the ex would not owe the money. Seems a bit odd thew ex sold the car so quickly perhaps? |
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year 2029
Average Member
590 Posts |
Posted - 21 May 2012 : 12:31:48
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As I said, I was not insolvent when I made the gift.
It was 16 months before I declared bankruptcy.
I'm not sure how you define 'quickly' for my ex selling the vehicle?
As it happens, they couldnt afford to run it after we split, and they downsized the vehicle.
I'm still waiting to hear what the eventual outcome is.
Regards,
2029 |
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debtinfo
forum expert
2826 Posts |
Posted - 21 May 2012 : 13:17:12
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| So when you made the gift you did have more in total assets than you did in total debts? |
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year 2029
Average Member
590 Posts |
Posted - 21 May 2012 : 13:24:57
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No I didn't, but isnt that the case for most people who aren't insolvent?
For example if they have a mortgage? |
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Niobe
Administrator
United Kingdom
4590 Posts |
Posted - 21 May 2012 : 13:46:51
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Not necessarily - if you are in negative equity then your debts will outweigh your assets.
Follow through
Make your dreams come true
Don't give up the fight
You will be alright
'Cause there's no one like you in the universe
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debtinfo
forum expert
2826 Posts |
Posted - 21 May 2012 : 14:18:25
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| Then for the purpose of the act you were insolvent |
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year 2029
Average Member
590 Posts |
Posted - 21 May 2012 : 14:57:04
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My mistake then.
I thought insolvency was the inability to pay creditors for your debt. |
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year 2029
Average Member
590 Posts |
Posted - 21 May 2012 : 14:58:25
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So most people in negative equity are insolvent?
quote:
Originally posted by Niobe
Not necessarily - if you are in negative equity then your debts will outweigh your assets.
Follow through
Make your dreams come true
Don't give up the fight
You will be alright
'Cause there's no one like you in the universe
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Niobe
Administrator
United Kingdom
4590 Posts |
Posted - 21 May 2012 : 17:40:05
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If you can continue to pay your way then you're not insolvent.
I have been in negative equity with this house (not anymore though) but was able to pay both the mortgage and my creditors.
Follow through
Make your dreams come true
Don't give up the fight
You will be alright
'Cause there's no one like you in the universe
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year 2029
Average Member
590 Posts |
Posted - 21 May 2012 : 18:05:59
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Like I said, at the time I was NOT insolvent, so invite debtinfos further advice/comments.
If however, Niobe and I are incorrect, I still welcome debtinfos further advice/comments. |
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debtinfo
forum expert
2826 Posts |
Posted - 21 May 2012 : 18:10:19
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You can be insolvent in 2 differnt ways for the purposes of recovering assets sold as a preference or undervalue (sections 339 and 340 of the act), either can apply. Section 341(3) of the act describes the definition of insolvency to be used and is as follows
(3)For the purposes of subsection (2), an individual is insolvent if— .
(a)he is unable to pay his debts as they fall due, or .
(b)the value of his assets is less than the amount of his liabilities, taking into account his contingent and prospective liabilities.
As you point out Year 2029, a great many people would find themseleves described as currently insolvent if they were to go bankrupt within the relevent time period |
Edited by - debtinfo on 21 May 2012 18:11:06 |
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Niobe
Administrator
United Kingdom
4590 Posts |
Posted - 21 May 2012 : 18:56:35
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Technically speaking I'm not insolvent as my assets outweigh my liabilities but I couldn't afford to pay my debts hence having gone through a DMP and an IVA but I'm still going.
Follow through
Make your dreams come true
Don't give up the fight
You will be alright
'Cause there's no one like you in the universe
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Topic |
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Asset disposal.
