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Question regarding a car

redwineboy
redwineboy Posts: 4 Newbie
in Bankruptcy & living with it
My brothers best mate is shortly going to file for bankruptcy and a couple of months ago sold my brother his kit car for nominal sum in the hope that one day he can buy it back. The log book is now in my brothers name and the car in storage. As far as my brother is concerned, things are above board. Would there be any repercussions for my brother as the car is now his on paper?

Comments

  • dojoman
    dojoman Posts: 12,027 Forumite
    If it was sold below market value, then yes there could be a problem, also as it was sold to a friend, this could also prove a to be a problem.
    :pB&SC No. 298
    Life`s Tragedy is that we get OLD too soon
    and WISE too late!
  • redwineboy
    redwineboy Posts: 4 Newbie
    A problem for my brother? Apart from buying the car he has nothing to do with his mate's finances. Will my brother get into trouble and by whom??
  • philnicandamy
    philnicandamy Posts: 15,685 Forumite
    10,000 Posts Combo Breaker
    IF the car was sold below market value then brothers best mate will be looking at a BRO/BRU from the receiver....and the receiver could take the vehicle back reversing the sale
    We all die. The goal isn't to live forever, the goal is to create something that will
  • redwineboy
    redwineboy Posts: 4 Newbie
    What about if they both said it was bought for market value? Could a court investigate my brothers bank accounts, even if they said it was a cash transaction?
  • peachyprice
    peachyprice Posts: 22,346 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    They will want to know what your friend spent the money on and will expect to see the proof.
    Accept your past without regret, handle your present with confidence and face your future without fear
  • redwineboy
    redwineboy Posts: 4 Newbie
    I am just worried that my brother would get into trouble, that is all. :confused:
  • debtinfo
    debtinfo Posts: 7,012 Forumite
    The worst that would happen to your brother is that he would have to give the car back, If he were to lie it would be a whole lot worse
    Hi, im Debtinfo, i am an ex insolvency examiner and over the years have personally dealt with thousands of bankruptcy cases.
    Please note that any views i put forth are not those of my former employer The Insolvency Service and do not constitute professional advice, you should always seek professional advice before entering insolvency proceedings.
  • peachyprice
    peachyprice Posts: 22,346 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Your brother won't get into trouble, his friend will. The worst that will happen to your brother is that he may have to give the car back.

    HTH
    Accept your past without regret, handle your present with confidence and face your future without fear
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