Hiding From Debt Collectors and Owning a Vehicle

michael1983l

Hi

Long story short as I know I will get asked. I owe money to my parents that they cannot afford to pay back without my contribution but I am in a huge amount of debt so much of so that I need to go bankrupt for. I will do this once I have paid the debt to my parents (some time next summer) I cannot go bankrupt before as the court will have me treat this debt the same as the rest and I couldn't live with that. So in the mean time I have moved jobs, address and telephone numbers in order to keep the collectors from harrasing me until I go bankrupt.

But in the mean time I really need a car for work, but I know that if I get the car, debt collectors may be able to get my address from the registration of the vehicle and will certainly get my address from the insurance search footprint on my credit file.

Does anybody have any ideas of how I can get a car but still keep my current details away from the debt collectors?

Thanks.

fermi

michael1983l wrote: »

Long story short as I know I will get asked. I owe money to my parents that they cannot afford to pay back without my contribution but I am in a huge amount of debt so much of so that I need to go bankrupt for. I will do this once I have paid the debt to my parents (some time next summer) I cannot go bankrupt before as the court will have me treat this debt the same as the rest and I couldn't live with that.

Not a good plan, as the Official Receiver/trustee will regard that as a "preference" under s340 Insolvency Act 1986 and would be entitled to go after your parents for the money, through the courts if required/seen fit.

michael1983l

fermi wrote: »

Not a good plan, as the Official Receiver/trustee will regard that as a "preference" under s340 Insolvency Act 1986 and would be entitled to go after your parents for the money, through the courts if required/seen fit.

Exactly, which is why I am not going bankrupt until after I have finished paying my parents.

McKneff

michael1983l wrote: »

Exactly, which is why I am not going bankrupt until after I have finished paying my parents.

Have you actually read and digested Fermi's helpful post. Even after you pay your parents back, and then go bankrupt, they will still go after them for the money ???? because you are giving them preferential treatment over the other people you owe money to............

michael1983l

McKneff wrote: »

Have you actually read and digested Fermi's helpful post. Even after you pay your parents back, and then go bankrupt, they will still go after them for the money ???? because you are giving them preferential treatment over the other people you owe money to............

I don't understand why it is relevant if it is previous to applying for bankrupsy, if you can explain that in a way I might understand please. And if it is the case then I guess I will be forced to just sit out and wait for statute barred instead.

How long would I have to wait until the courts would not deem it relevant in terms of the law that you state. I did have a conversation about this situation with national debtline and at no point did they mention this could happen.

Does anybody have any advice about the car situation?

matttye

michael1983l wrote: »

I don't understand why it is relevant if it is previous to applying for bankrupsy, if you can explain that in a way I might understand please. And if it is the case then I guess I will be forced to just sit out and wait for statute barred instead.

How long would I have to wait until the courts would not deem it relevant in terms of the law that you state. I did have a conversation about this situation with national debtline and at no point did they mention this could happen.

Does anybody have any advice about the car situation?

Read this re: preferences - http://www.legislation.gov.uk/ukpga/1986/45/section/340

[Deleted User]

A question, if I may.

What if the person who received the money, didn't know they were receiving a preference, and has spent the money?

michael1983l

matttye wrote: »

Read this re: preferences - http://www.legislation.gov.uk/ukpga/1986/45/section/340

So judging by that I have only two options

1) Pay my parents as well as all of my debtors, which frankly isn't remotely possible with my current situation.

or

2) Have to hide until everything is statute barred.


Both options suck.

fatbelly

michael1983l wrote: »

I don't understand why it is relevant if it is previous to applying for bankrupsy, if you can explain that in a way I might understand please. And if it is the case then I guess I will be forced to just sit out and wait for statute barred instead.

How long would I have to wait until the courts would not deem it relevant in terms of the law that you state.

Two years.

Some info from the technical manual

Preferences

As for the car, debt collectors have no rights whatsoever over your assets. It could be an issue in bankruptcy, or if bailiffs are appointed following a court order.

We've only got bits of the whole picture. If you wanted to do a statement of affairs, we could advise better.

michael1983l

Thanks fatbelly for the technical guide, that helps a lot. I suppose 2 years is better than 6.

As far as the car goes, it is not really about the logistics of owning a car in terms of debt that I am worried about, it is the registration details and insurance giving away my current address.

I appreciate that an SOA can help in certain cases but I have done one with national debtline and they said I had little option other than Bankrupcy as my debt was so high and my money remaining for debts was so low. So I can't really change that now.

However I have suffered from servere mental illness in the past and since I have been "hiding" as such my health has improved greatly. I do not wish to get back into that place again, so wish only to speak with my creditors when I can actually acheive something rather than just have them call me at home and work all day long and continuously threaten me with doorstep visits and the such.

I just wish I never took a loan from my parents, worst thing I have ever done as all it has done is made it impossible to deal with my own situation without screwing my parents over.

EDIT* Might be useful to add that I currently reside at a friends and I will be sharply kicked out should debt collectors and bailiffs start turning up.

datlex

Why do you need a car for work? Is there not a bus or train station within 10 to 15 mins walk of either your home or place of work. I know it takes longer by bus but it can have other benefits such as being cheaper with a season ticket. If you really do have to have a car- if you can pay the insurance up front it shouldn't appear on your credit report. (mine only appears when I have to pay monthly)