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emdaz
New Member
71 Posts |
 Posted - 15 May 2009 : 10:02:13
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OK, so I just found out my car finance is not finance it's a personal loan.
Is it right then that I can sell it now and buy a cheaper car (about 2k)
Also what is the least i can sell it for. Parkers says in good condition about 5k but would like to may be sell it a friend cheaper or keep a bit back for emergency.
Could the OR find out what I sold it for??
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John
New Member
United Kingdom
73 Posts |
Posted - 15 May 2009 : 10:44:30
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Hi
absolutely he can as you must evidence where the proceeds of the sale went.
First establish what it is really worth in the current market (not Parkers) by going to a trader.
Then sell at that value to your friend making sure the funds can be seen to enter your bank account.
Then search for the £2K car and purchase it making sure once again that the transaction will be visible on you bank account.
Use the balance to cover court fees etc and if there is any remaining at the time of BR the OR will claim it.
It's not for the OR to prove you sold undervalue, it's for you to evidence that you didn't.
John White
England Jackman & Spacey |
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emdaz
New Member
71 Posts |
Posted - 15 May 2009 : 10:51:39
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So none of these transactions can be cash? Even if we have a receipt etc...? It all as to go through the bank account? I want to do this right, im just confused as what's best.
So is your advice is to get in valued by a trader, then sell to them rather than private? And also buy again from a trader not private seller?
We rely so much on the car, we really don't want to lose a vehicle, as we have new baby twins, and getting to appointments at the hospital and using a double pram etc, with all the stuff you need to take out with you is a must.
Anymore advice would be greatly appreciated, Thanks |
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John
New Member
United Kingdom
73 Posts |
Posted - 15 May 2009 : 11:02:10
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Hi
no I'm not suggesting you sell or buy from a trader. Just obtain a proper valuation from a trader then sell it for that sum to your friend.
The friend can pay cash as long as you deposit the funds into your bank. You too can pay cash for the replacement by withdrawing the sum required from that account in a single withdrawal.
In this way you have not sold undervalue and the sale and purchase transactions are visible via your bank statement deposits and withdrawals.
John White
England Jackman & Spacey |
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emdaz
New Member
71 Posts |
Posted - 15 May 2009 : 11:14:18
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| And is this all to be done before bankruptcy? |
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emdaz
New Member
71 Posts |
Posted - 15 May 2009 : 11:25:40
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| Sorry do i need proof of a valuation? |
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emdaz
New Member
71 Posts |
Posted - 16 May 2009 : 08:57:11
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Just a bump. anyone got any idea??
Thanks |
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gettingoutofdebt
forum expert
2418 Posts |
Posted - 16 May 2009 : 08:59:57
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| It would need to be done before BR and a written valuation would be ideal. The excess could be used to pay a £2k car and to pay the court fees. |
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emdaz
New Member
71 Posts |
Posted - 16 May 2009 : 09:17:12
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Thanks for quick reply,
Here is our situation:
we have a bit of money in the bank which we will be withdrawing to live off and pay the court fees.
We are gonna sell the car (worth about 3500 - 4000) and buy one @ 2k with the excess we were gonna save 600 for a bond on rented accom and a couple of months rent (i'm currently unemployed)
would this be all above board??
Thanks. |
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gettingoutofdebt
forum expert
2418 Posts |
Posted - 16 May 2009 : 10:05:16
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| That should be fine as everything would appear in your bank statements although the OR may query the additional money for the extra months rent but you can explain this during the interview. |
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Reviva UK
Advanced Member
United Kingdom
2452 Posts |
Posted - 16 May 2009 : 14:07:15
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just a note regarding the car.
The OR will allow a car for specific reasons, the main one being that you need it to attend work. If you are currently out of work thenyou would need to build a significant case why they would allow you to retain the car if unemployed.
Paul Johns
Assisted Bankruptcy Specialists
Reviva UK
http://www.revivauk.com
Real People ..... Real Debt Solutions
www.revivauk.com |
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emdaz
New Member
71 Posts |
Posted - 16 May 2009 : 20:50:49
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Update - We have a valuation and agreed sale with a well known garage (Perrys) for £4250 for our car, we take it in and collect the cheque on Monday, and we have also agreed and purchased a replacement car for excactly £2000 with a receipt etc. So everything should be ok now we hope??
The extra from the car will be banked in our cashminder account for a bond on new rental property and rent (as many months as we can get away with??)
We should be able to keep the car as my wife needs it to get to work (its in a remoth location too, no buses)...? |
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gettingoutofdebt
forum expert
2418 Posts |
Posted - 16 May 2009 : 22:30:57
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As Paul mentioned a car isn't guaranteed to be ok with the OR but if your wife needs it for work and cannot get there with public transport then it should be ok.
If you sell the car for £4250 and buy another one for £2k and use £510 of the excess for the BR fee then you will have £1740 left and you could use some of this for the bond and, hopefully, the OR will let you keep some for the rent as well. |
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Reviva UK
Advanced Member
United Kingdom
2452 Posts |
Posted - 17 May 2009 : 09:40:00
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the or won't let you keep any for rent UNLESS you have already paid it out so make sure you do that.
also you should review ownership of the car, who deposits the money in which account etc.
For Example.
If the car is currently owned by hubby - and he is not working - he sells tha car deposits money in his account then :-
1. buys a replacement car in his name ( problem because he isn't working)
2. gives you £2k to buy a car ( problem because this is a gift )
If the old car were registered in hubby's name but actually belonged to you, then the funds should go into your account and the new car be invoiced and registered in your name.
that might not be the case but it would be reviewed better by the OR
Paul Johns
Assisted Bankruptcy Specialists
Reviva UK
http://www.revivauk.com
Real People ..... Real Debt Solutions
www.revivauk.com |
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emdaz
New Member
71 Posts |
Posted - 17 May 2009 : 10:51:43
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Thanks for your reply Paul.
The old vehicle was in my wifes name and the new one is now in her name too, so this should be fine then, as she is the one who needs it.
With regards to the new rental, should we move into rental accom before BR then or just after so that we can your our surplus money for rent??
Thanks |
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Reviva UK
Advanced Member
United Kingdom
2452 Posts |
Posted - 17 May 2009 : 13:02:08
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always better to sort your new home first. That has to be a priority.
People usually want to rush into Br before getting everything organised to make it as smooth as possible.
new home
car
deposit
bank account
etc etc etc
Paul Johns
Assisted Bankruptcy Specialists
Reviva UK
http://www.revivauk.com
Real People ..... Real Debt Solutions
www.revivauk.com |
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Topic |
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My Car
