we are considering bancruptcy but is concerned about loosing our car. could we sell the car to my parents, use the proceeds to pay off the loan and then keep the car??
Hi there unfortunately i can not provide a straight answer as it depends on the value of the vehicle and its need. As a rule of thumb what kallis3 has said is totally correct on value etc but the OR can be flexible also with regard to length of journey ie if someone required a car and travelled high mileage for work purposes they OR would not fix the level at £2k and you could probably get to keep a much higher value car.
It all depends sorry on your vehicle's value and your actual need, let me know your particular info and i will try to advise further
Melanie Nicholas 28 years insolvency experience - 23 of which in the Insolvency Service - Insolvency Manager Jones Giles email me at melanienicholas@jonesgiles.co.uk
In my case the OR has exempted my car as I need for work, which is worth about £3k (according to Parkers online) and has no outstanding finance on it.
However, my understanding is that if you have a secured loan (i.e. HP) then it is not in the ORs interest to make you sell it unless you are making some huge payments on it.
I think is this case getting your parent's to pay off the loan might actually work against you... i.e. they could pay the loan off and then the OR could get you to sell it to pay other debts
we are considering bancruptcy
Posted - 26 August 2009 : 17:06:38
