I have had to sell my car because I owed money to my two sons and I didn't think it fair that they were not going to get their money back. My husband and i are going to go bankrupt will they hassle me that I sold my car just before going bankrupt? I know we will lose our house as there is £18,000 equity in it , but the car was only sold for £5,500 and as I had to pay debts with that will i be ok?
I am afraid that the OR will look very closely at that transaction, because you have favoured your sons - who are associated creditors - over others. This is a preference payment which can be overturned by the eventual Trustee. I suggest that your sons do not spend the money until after your meeting with the OR in case they have to pay it back.
For an informal chat about any financial difficulties, or advice as to the options available, I can be contacted via my website - www.melaniegiles.com
sold my car because I owed money to my two sons
Posted - 25 April 2008 : 23:00:27
