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In 2 Deep
Junior Member
United Kingdom
161 Posts |
 Posted - 27 December 2009 : 17:17:15
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Hi all,
If I have used a balance transfer back in May 2009, to clear the wife's remaining HP on her vehicle (roughly 5k)how would this be looked on by the OR. It is only myself declaring BR, and not my wife, and the vehicle does not belong to me.
Even though back in May BR was not even thought of, would this be frowned upon by the OR?
Many thanks in anticipation.
Treat EVERY Penny as a prisoner. |
Edited by - In 2 Deep on 27 December 2009 17:54:52 |
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John
New Member
United Kingdom
73 Posts |
Posted - 27 December 2009 : 21:08:28
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Hi
innocent as the transaction was at the time technically the OR could argue that you have a £5K interest in the car. I take it you cleared the balance of the HP by quoting the credit card details to the HP company who duly debited the card account.
John White
Independent Debt Consultant
Specialising in Bankruptcy |
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In 2 Deep
Junior Member
United Kingdom
161 Posts |
Posted - 27 December 2009 : 21:15:11
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Hi John,
No this was by way of a balance transfer cheque paid into my account back in May, which the wife then forwarded a cheque from our current account to Ford credit to clear the remaining balance on the HP.
Thanks.
quote:
Originally posted by John
Hi
innocent as the transaction was at the time technically the OR could argue that you have a £5K interest in the car. I take it you cleared the balance of the HP by quoting the credit card details to the HP company who duly debited the card account.
John White
Independent Debt Consultant
Specialising in Bankruptcy
Treat EVERY Penny as a prisoner. |
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John
New Member
United Kingdom
73 Posts |
Posted - 27 December 2009 : 21:30:18
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Hi
sorry if I appear to be missing the point here, your post reads "you had a balance transfer of £5K paid into YOUR account (not OUR account).
Then your wife issued a cheque for £5K from a different account held by you both"
Thus, as I read it, the £5K from the joint account and the £5K from the card paid into YOUR account are not, in fact, the same monies.
Am I correct?
John White
Independent Debt Consultant
Specialising in Bankruptcy |
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In 2 Deep
Junior Member
United Kingdom
161 Posts |
Posted - 27 December 2009 : 21:48:45
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Sorry John,
That should be OUR account which the balance transfer was paid into, then the wife issued a cheque from our joint account to clear the HP.
quote:
Originally posted by John
Hi
sorry if I appear to be missing the point here, your post reads "you had a balance transfer of £5K paid into YOUR account (not OUR account).
Then your wife issued a cheque for £5K from a different account held by you both"
Thus, as I read it, the £5K from the joint account and the £5K from the card paid into YOUR account are not, in fact, the same monies.
Am I correct?
John White
Independent Debt Consultant
Specialising in Bankruptcy
Treat EVERY Penny as a prisoner. |
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debtinfo
forum expert
2826 Posts |
Posted - 27 December 2009 : 22:03:37
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| it would seem straightforward to me. she had a debt, you paid money to her debt so in effect you gave or lent her money to pay her debt. Thus you have transfered her liability over t you and extended her credit. If nothing drastic has happened since you were probably insolvent at the time. Therfore the OR could look at it as a transaction at undervalue and ask your wife to repay the debt, to the OR |
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John
New Member
United Kingdom
73 Posts |
Posted - 27 December 2009 : 22:08:51
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Hi
no problem, got there in the end.
As per my first post, you could not be viewed as being guilty of any intended wrong doing but you may well have an interest in the car which the OR will want to realise as part of your estate.
Thus a negotiation between the OR and your wife regarding the purchase of your interest is a distinct possibility.
John White
Independent Debt Consultant
Specialising in Bankruptcy |
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In 2 Deep
Junior Member
United Kingdom
161 Posts |
Posted - 27 December 2009 : 22:12:31
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Thanks John for your help.
Your right, at the time I was solvent - my position was made redundant in July and the rest is history as they say.
Assumption is the mother of all evil as the saying goes.
quote:
Originally posted by John
Hi
no problem, got there in the end.
As per my first post, you could not be viewed as being guilty of any intended wrong doing but you may well have an interest in the car which the OR will want to realise as part of your estate.
Thus a negotiation between the OR and your wife regarding the purchase of your interest is a distinct possibility.
John White
Independent Debt Consultant
Specialising in Bankruptcy
Treat EVERY Penny as a prisoner. |
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In 2 Deep
Junior Member
United Kingdom
161 Posts |
Posted - 27 December 2009 : 22:41:44
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Would the OR demand that my wife sells her car, given my interest in the vehicle, or could he insist on a payment plan being implemented to cover the amount contributed to clear the HP by myself?
Thanks in anticipation.
quote:
Originally posted by John
Hi
no problem, got there in the end.
As per my first post, you could not be viewed as being guilty of any intended wrong doing but you may well have an interest in the car which the OR will want to realise as part of your estate.
Thus a negotiation between the OR and your wife regarding the purchase of your interest is a distinct possibility.
John White
Independent Debt Consultant
Specialising in Bankruptcy
Treat EVERY Penny as a prisoner. |
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Skippy
forum expert
United Kingdom
3290 Posts |
Posted - 28 December 2009 : 10:50:45
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I would imagine that the OR will want the car to be sold and the proceeds paid into your estate, but your wife will be able to negotiate with the OR to buy it. I'm not sure if the OR would allow a payment plan, or whether they would want the money upfront.
Tomorrow is a mystery, yesterday is history, today is the present, a gift to make the most of.
View my blog at http://skippy13.blogs.bankruptcyhelp.org.uk/
29 IPA payments made, 7 to go - in single figures! |
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In 2 Deep
Junior Member
United Kingdom
161 Posts |
Posted - 28 December 2009 : 17:25:24
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Thanks all.
This amount (5k) equates to nearly a 1/4 of the vehicles current value.
Surely the OR would and could not insist the vehicle is sold, and then claim the full proceeds for the BR estate?
Thanks in anticipation.
quote:
Originally posted by Skippy13
I would imagine that the OR will want the car to be sold and the proceeds paid into your estate, but your wife will be able to negotiate with the OR to buy it. I'm not sure if the OR would allow a payment plan, or whether they would want the money upfront.
Tomorrow is a mystery, yesterday is history, today is the present, a gift to make the most of.
View my blog at http://skippy13.blogs.bankruptcyhelp.org.uk/
29 IPA payments made, 7 to go - in single figures!
Treat EVERY Penny as a prisoner. |
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Skippy
forum expert
United Kingdom
3290 Posts |
Posted - 28 December 2009 : 17:32:11
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I don't see that they can claim the full amount if your wife has paid the rest, but I would think they could claim the 5k.
Tomorrow is a mystery, yesterday is history, today is the present, a gift to make the most of.
View my blog at http://skippy13.blogs.bankruptcyhelp.org.uk/
29 IPA payments made, 7 to go - in single figures! |
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Reviva UK
Advanced Member
United Kingdom
2452 Posts |
Posted - 28 December 2009 : 17:35:34
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If the vehicle is sold you would be able to use some of the balance to purchase a car for yourself, pay bankruptcy fees and offer the balance to the OR.
By being upfront and clear in the Statement of Affairs I don;t believe the OR will view it as a deliberate preference payment.
You realised the mistake now that you are considering bankruptcy. You have overturned the position, have used some of the balance to meet certain allowable costs ( such as Br fees and a replacement vehicle for you to get to work etc) and have kept the balance for the OR.
Paul Johns
Bankruptcy Specialists
Reviva UK
www.revivauk.com
Real People ..... Real Debt Solutions |
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Topic |
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Use of Credit to clear HP
