Disposal of an asset question???

scatty_and_scared

Hi there,
This is my first post, and I'm sure will be followed by loads more!!!
This first question is part of my petition for bankruptcy, and is a result of this story...
My mother (in an attempt to help me and soon-to-be-ex-husband out of huge black hole of debt) loaned me and then husband 23,000. This was to pay half of then debt, and to buy us a small car each; which we did (we each bought a small Fiat hatchback).
Due to husband's failed business, further huge debts piled up after that, and at one point he sold his car in order to make some payments to creditors.
When my mother found out, she was furious, and immediately transferred my car into her name to prevent mine going the same way.
My feeling is that although I was allowed to register the car in my name, that it was her car, and that she as entitled to take it back (esp as the payments on the loan to us had been put on hold until we were on more solid footing!).
I have been advised by the CAB that the OR may take a dim view of this, and either say that I disposed of an asset without attaining it's true value, or confiscate said car from my mother/make her sell it.
They also advise that the OR tends to view loans from family as gifts (23,000???!!!!!!!! Blimey, my sister would be livid!!!!!!!).
I am completely flummoxed - is there any advice please?????
scatty_and_scared

YamahaR6

Can't answer this I'm afraid but I'm in a similar situation so when I go to court I'll let you know the outcome!

I recently cashed in a savings policy to pay my parents back cash that I owed them cos my dad had retired and needed the money. I did this before I had any inclination that I was gong to be filing for bankruptcy but I imagine I'm going to be in trouble cos the OR might not see it that way. Either way I've done it and there's no way my dad still has the money even if they ask him for it so I'll just have to face the consequences when the time comes and possibly even a BRO.

scatty_and_scared

OH MY GOSH!! I had not heard of a BRO, but now terrified!!!!!

eklynne

The OR does not necessarily assume that the 'registered owner' of the car is the true owner. He will regard the owner to be the person who pays tax, insurance, puts in fuel, drives the car etc to be the owner, so what it says on the v5 document isn't really what he's interested in.

YamahaR6

No need to be terrified From what other people have said I think they're fairly rare as long as you're honest and don't try and hide the truth. Just means the bankruptcy restriction period is extended. But chances of getting one I'm guessing are small, I meant it as a worst case scenario kind of thing.

Someone else will have a more definitive answer though so don't panic