Hi, I'm currently bankrupt and have borrowed a car off a relative. Can I buy a car off a friend (at lowest parkers private price) and pay them back per month (they are aware I am bankrupt)? I am still being assessed by the Insolvency Service and they are still looking at my income and expenditure therefore I need to justifiably be able to repay a set amount to this friend. Currently I have advised the Insolvency Service that my fuel expenses are £600 per month (travel 120 miles round trip for work), buying this car will save on fuel but the saving will be be offset by the repayment for the car purchase.
the OR will not give an allowance per month for this purpose irrespective of whether or not it is cost effective. If you could service the repayments from any monthly disposable income you may have left after any IPA payment is deducted that would be fine.
I have a similar question, I have been BR for 6 months now and have to have a car for work I have a cheap old banger worth approx £400.00 which the OR was OK with, this car has now become unreliable and costly with repairs. My parents have offered to loan me some money to buy something a little better to start paying off after my BR, am I allowed to do this? if so is it better to register my parents as the legal owners of the car and me just registered keeper? or if I purchase the car do I have to inform the OR at all.
your parents should retain ownership of the car and be able if required to evidence the purchase (sameday cash withdrawal from their bank account of sum equal to purchase price or payment to seller via cheque / draft).
It is perfectly ok for you to have the car registered in your name as this is not proof of ownership. Also to begin repaying your parents after discharge is fine.
Hi, I'm currently bankrupt and have borrowed a car
Posted - 03 March 2009 : 23:00:23
