My mother bought me a car last year and I'm paying her back monthly. If I go bankrupt I'm being lead to believe the car will be sold as an asset and the money shared out amongst my creditors. Obviously I don't want this to happen as I want any money to go to my mother and ideally I'd like to keep the car to help me find work as I'm going bankrupt due to loosing my current job.
I had thought the easy way round this was putting the car in my mothers name but I'm told the car can still be claimed back from her.I was also told that if I sell the car now I will have to explain where the money has gone and that if I give it all to my mother they could chase her for the money or extend the term of my bankruptcy as I hadn't done things properly.
If I'm out of work would the fact that having a car might make finding work easier be a good enough reason for them to let me keep the car ?
My mother paid for the car using her debit card so I should be able to prove she paid.
I have been paying her back with cash rather than bank transfer or cheque, so there is no record of repayment.
The owner of the car is normally the person who has paid for the car and not necessarily the person who is the registered owner.
If your mother paid for the car using a debit card and has the statement/receipt from the car salesman then it shouldn't be a problem proving that she is the actual owner of the car.
Regarding the repayment, your mother will be a creditor so you could put her down on the SOA as such and if you pay an IPA she would get a share of the amount you pay. As you have paid your mother back in cash each month the other option is not to tell the OR that you are repaying your mother so she wouldn't be a creditor. You could then continue to pay her back out of any disposable income you have after paying an IPA if eligible.
It may not be construed as a gift if you say that your mother bought the car but you have access to it to travel to/from work. There is a section on the SOA (3.9) for details of a car you have access to but don't own so you could put the car details in there.
Edited by - gettingoutofdebt on 13 August 2009 18:57:37
My mother bought me a car last year
Posted - 11 August 2009 : 10:32:44
