Bankruptcy Help Needed!!!

Dave1985

Hi,

I've got no one to blame but myself for this one but i was hoping there is a way out of it.

I bought a car (unsecured loan which i'm still paying) just over a year ago but registered it in my mothers name, we shared the car neither of us doing much mileage and to keep the insurance down (her no claims bonus was good and i'm under 25) she was down as the main driver thus the reason for signing the V5 over to her.

The problem is now she cant keep up her credit card repayments and is thinking of going bankrupt. The car is a sports car (not practical) and its worth over the £2500 limit (worth about £7000) so i am assuming the court would make her sell it, she cant just sign it back as they would look into that and take it off me.

Is there any way we can prove the car is mine?

Cheers

peachyprice

Hi Dave,

Firstly I would start by changing the insurance to your name only, I'm sure this will cost but if you want to have any chance of keeping the car it will be worth it. Secondly, start keeping all your petrol receipts, they will be able to see from the mileage and the amount of petrol you put in that your mum doesn't use the car. Also if you have any receipts from the service, tax and MOT in your name that would be a great help.

If you can clearly show that your mum doesn't use the car the OR should consider that you 'own' the car. They use this method in reverse to prove that somone who has gone bankrupt 'owns' a car that is registered in someone elses name, so there is really no reason why this shouldn't work for you.

If it comes to the worst, the OR will do a deal for you to buy the car, they usually accept a really low offer to save them the hassle of having to sell the car.

HTH

Dave1985

I have a direct debit set up paying the insurance and i've been paying for servicing/running costs and do have some recipts to prove this but the last MOT was bought online with my mum's credit card (i gave her the cash) if the court used some discretion it would see the car is a "boy racer" japanese sports car, it would only take one look at it to see it wasn't hers.

peachyprice

It isn't at the court stage that any decision will be made, it's after once her file goes through to the official receiver for examination, unfortunatley cars are a bit of a minefield and there really is no second guessing how an OR will react, it's one area that you can't predict and just have to hope for the best.

One thing though, don't be afriad for you and your mum to stick up for yourselves.