Selling car to dad to pay for bankruptcy fees...

tigerfeet2006

INAN you are over thinking this.

The OP is not BR yet so can do what he likes with his possessions. But if he was to sell them for less than they are worth then the OR has the power to reverse said actions.

As long as the car is not sold for under value then the OR should have no problems with it. If the OR will not allow an amount for the car expenses then the OP will have to put down public transport expenses and try andrun the car from those.

Watcher please can you go through the reasons your OH needs a car. As said keeping two cars may be abit ambitious if she doesn't need it for work.

silvercar

Will the OR allow the running costs of 2 cars?

debtinfo

for thr record, tigerfeet is correct.

If you sell a car you are not disposing of an asset, merely swoping one asset (car) for another asset (cash), if you sell it for less than it is worth then you are disposing at an undervalue which is a bankruptcy offence but not if you sell it for what it is worth.

Having said that, it then depends on what you do with the new asset (cash), same rules as always apply, so if you have a legitimite and unavoidable reason for spending it then that is fine as well, paying your bankruptcy fees would a suitable use, im sure you can all think of things that would not be a reasonable use of the money

alastairq

im sure you can all think of things that would not be a reasonable use of the money

sorry...for the life of me, I cannot!

Except perhaps, being compelled to pay so much to the electric company? {when heating, lighting and cooking should be free to every living soul?]

tigerfeet2006

debtinfo wrote: »

for thr record, tigerfeet is correct.

If you sell a car you are not disposing of an asset, merely swoping one asset (car) for another asset (cash), if you sell it for less than it is worth then you are disposing at an undervalue which is a bankruptcy offence but not if you sell it for what it is worth.

Having said that, it then depends on what you do with the new asset (cash), same rules as always apply, so if you have a legitimite and unavoidable reason for spending it then that is fine as well, paying your bankruptcy fees would a suitable use, im sure you can all think of things that would not be a reasonable use of the money

Cheers DI for the confirmation

How about a nice holiday in the sun, somewhere a way from wet and windy Blighty?

We really need to know what the use is going to be of the second car as I have a feeling that one may have to go.

Ineedaname

Thanks so much guys (and gals). Operation booked to have vocal chords relocated from my backside to my throat!:D

alastairq

We really need to know what the use is going to be of the second car as I have a feeling that one may have to go.

Did I not read above that the second car was a SMART car?

In which case, could it not be deemed as a 'lifeboat'....in case the other car should sink?

Ineedaname

I think the first car is the Smart car, the second car is big enough to put the family in!

alastairq

Ineedaname wrote: »

I think the first car is the Smart car, the second car is big enough to put the family in!

hide it in the boot?

Just tell the OR 'it's the spare wheel?

watcher27

Blimey, thanks for all the replies guys (& gals)! :eek:

Sorry for not replying, been off line the last 2 days doing christmas stuff lol

Where do i start? lol

Well the main issue we have with going down to one car is running costs. The smart is the Cdi diesel version with 6-speed box. it's VERY good on fuel but no good as a family car as it only has 2 seats, and as its only got 2 seats then I'm guessing its the car the OR will want us to get rid of. BUT if i was to use the focus for my 70 mile daily trip to work & back then i would have to over DOUBLE the fuel bill.
Also my wife works part time, and uses the focus to run my 3 year old to play school and back along with doing the shopping etc.

Regarding the smart's value, its a 2000 (xreg) and LHD which i believe knocks the value down a bit. And then there is the mileage. The old girl have just hit 236000km!
Condition wise, the outside is nice & "smart" (ho ho) but the inside is pretty ropey as the previous owner (who owned it since new) was a lady artist and she used to chuck her ladders & paint in it, so the inside has a few paint marks and scratched from the ladder. She also used it on her farm & loaded it with hay & horse feed which spilt everywhere, so it looks grubby no matter how much i clean it.

There was one on eBay a few weeks back with far less mileage and priced at about £1900 and it failed to sell.
Also, not sure if it makes a difference but i only paid £500 for the smart last october.

Taking everything into account, i believe £1400 is actually a pretty accurate valuation of it.