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s10
Junior Member
226 Posts |
 Posted - 26 January 2009 : 09:27:20
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Hi Jo
S10 here again. Hope you are keeping well?
I was wondering if I could pick your brains yet again?
I have been called to a meeting at the OR offices (this week), to explain why at the time I appeared to be insolvent, I apparently showed a ' Preference ' by giving my car at the time, to my now ex girlfriend, as payment to all she contributed to in the house & holidays etc. This was given to her at least one month prior to me going bankrupt, so I am assuming that because they have called this meeting they suspect some misconduct, but also if they have called the meeting then they still have no concrete proof(do they)?? I know they have powers to seize monies they deem should have gone to creditors even if the monies are no longer with me. So why don’t they just take it?? The other question is since I no longer had a car at the time, but needed one to get to work, my good friends lent me their spare old banger as long as I insured/taxed it etc, but now, in the near future they might need it. As I am already in an IPA agreement can I ask the OR if I can be allowed some money to buy an old banger to get to work? Is this feasible or am I just blowing against the wind??
Sorry this is so long but it would be nice to know where I stand before my meeting on wedsday.
Kind Regards
S10
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John
New Member
United Kingdom
73 Posts |
Posted - 26 January 2009 : 11:51:11
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Hi
the transfer of the car will be seen as a transfer under value. As you felt some monies should be passed to your ex it could also be considered preference. My view is that it should be a transfer under value as you did not gift the car to repay monies that you had borrowed from her, therefore not strictly speaking preference.
It is not unusual for the OR to want to go through this again at interview rather than in a telephone conversation.
Re the friends car:-
if you need to use this car for work purposes that would explain why the OR was acceptant of the running costs within your expenditure claim even though the vehicle does not belong to you.
The bad news is that whilst the OR will continue to allow the running costs he is unlikely to allow a monthly claim by you to be set against the funding of a replacement car in the event of your friend needing to have their car back.
www.Bankruptcyhelp.org.uk
0800 078 9367 |
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s10
Junior Member
226 Posts |
Posted - 26 January 2009 : 12:29:45
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Hi John
Thankyou for responding.
I am sorry to sound a bit thick, but I dont really understand the point's you raised, of under value and preference, and how the OR would view them differently.
Very stressed now!! as I guess if the OR wants the money back they will get in touch with my ex, which is the last thing I want!!
Kind Regards
s10 |
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JulianDonnelly
Junior Member
United Kingdom
325 Posts |
Posted - 26 January 2009 : 12:32:20
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Hi S10,
In a nutshell, if you have disposed of an asset, you need to be able to prove to the OR that you received "fair market value" for it. In addition, with any funds received, you cannot show preference to one creditor over another, so you'd have to pay them all on a pro-rata basis.
Hope this helps!
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk
Don't forget the helpline on 0800 078 9367 |
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John
New Member
United Kingdom
73 Posts |
Posted - 26 January 2009 : 12:43:55
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Hi
in bankruptcy you are not permitted to have recently transferred assets to a 3rd party under value. By gifting the car to your ex the OR is saying that is what has happened here.To stay within the rules the car should have been sold for it's true value.
Yes the OR could decide, following interview, to apply to the court to have the asset claimed and returned to them, which would, as you say, involve contacting her.The car would then be sold and the funds distributed to all creditors pro rata.
A preference is where you pass an asset, including cash, goes to a particular creditor when all creditors should be treated equally fairly prior to and within bankruptcy. As in my previous post, I don't think preference applies here but it would appear transfer under value does.
www.Bankruptcyhelp.org.uk
0800 078 9367 |
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s10
Junior Member
226 Posts |
Posted - 26 January 2009 : 12:46:45
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John & Julian
Many thanks for the info.
Kind Regards
S10 |
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JulianDonnelly
Junior Member
United Kingdom
325 Posts |
Posted - 26 January 2009 : 12:47:18
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You are most welcome!
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk
Don't forget the helpline on 0800 078 9367 |
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Message for Jo- Can you advise?
