Hi need some advice. I think I will have to go bankrupt in the next couple of months. I have a car worth around £2500. My step dad has said he will take over ownership of it now for me. I don't need the car at the moment and he put money into buying it so can't ask him to give me any. Is this allowed?
If your car is only worth £2500 then you could claim this as exempt property in the Bankruptcy without transferring ownership.
If you were to transfer ownership then this would need to be done at book price of the vehicle so it can not be classed as a transaction at an undervalue.
You say you don't need the car at the moment are you going to need this in the near future?
Hi thanks for your reply. I will need my car in the future as I wont be able to get a job. I have my own business and if I go bankrupt i will need to look for a job so will need a car. The car is not in good condition which is why I thought around £2500 but parkers said it was around £3000. Would the value of the car matter if I was transfering it to my step dad and he wasn't giving me any money for it?
If you transfer the car without any funds then the trustee in Bankruptcy will certainly claim the vehicle as they will be able to see what you have done.
Your best bet is to claim the vehicle as exempt property claiming that you need this for your business and a job when you have ceased trading.
If it is in poor condition then you can list on the form what is wrong with the vehicle and the value.
can I do this?
Posted - 15 May 2008 : 14:13:54
