Sell asset to pay fees

arsenal-fan

Hi everyone,

I'm new to the site and hope people have some help for me or previous experience.

My question is quite a simple one; can I sell a car I don't use to pay for bankruptcy fees for my wife and I?

I rang and spoke to the OR's assistant for our area and her response was a point blank 'No'.

Has anyone done this before and it been ok or should I follow the advice of the OR and find the fees elsewhere?

Many thanks in advance.

rossireps

hi i think you can as long as its for the market value.
hopefully someone else will know for def.

National_Debtline

We've had clients in the past that have done this. What's important is that you sell the vehicle for a fair amount, there could be implications if it was sold 'at under value'. So long as you're transparent with the OR and can demonstrate where the money has gone then it should be unlikely that you'll get in to any trouble. If you sell the vehicle for a figure which is higher than the applications fees you should make pro-rata payments with this surplus to your creditors.

arsenal-fan

Thank you both, that is what I first thought, I just want to make sure I am doing everything right.

sam-wileman

Hi there and welcome.

We sold our car to pay for the fees, as long as you get market value for it, you should be fine.

Sam x

JCS1

National_Debtline_representative wrote: »

We've had clients in the past that have done this. What's important is that you sell the vehicle for a fair amount, there could be implications if it was sold 'at under value'. So long as you're transparent with the OR and can demonstrate where the money has gone then it should be unlikely that you'll get in to any trouble. If you sell the vehicle for a figure which is higher than the applications fees you should make pro-rata payments with this surplus to your creditors.

The alternative to making pro-rata payments to creditors is to keep the money in your bank account and then pay this over to the OR after you have gone bankrupt.

debtinfo

just to sum up, you have to spend an asset to pay for the fees, after all how else ca you pay them, the simplest asset to use is your cash but if you dont have any cash spare then it is perfectly fair to sell another asset to get the cash for the fees, as has already been said it must be sold for a fair value and is there is money left over after the money for the fees to has been paid then it must either be used to pay creditors, essential outgoings or kept for the OR

davidgmmafan

I agree with comments already posted. I simply can't understand the negative answer you received. The only concern when selling something is if its some sort of ploy to diddle creditors (eg selling it to a family member for a pound), but since you need the funds to go bankrupt this isn't going to be an issue as the creditors won't get anything divided up until you go bankrupt.

It does worry me when wrong information is given out like this as people are very vulnerable and worried at a time like this.