Question about car and proving ownership

BungleBear

I am about to file for BR but am worried about proving car ownership.

My DH just sold his car (lets call this 'Car A') but it was in my name because of the insurance on it. Over the years we have alternated whose name our car is under so we both keep our no-claims bonus. So Car A was in my name because it followed a previous company car that I obviously couldn't have in my name for earning a no-claim bonus. Car A was paid for out of my bank account a year ago, and the reason for that is because I kept the funds from the sale of his last owned car (Car (he bought and sold in 2010) so I owed those funds back to him. I had the funds from the sale of Car B to furnish a flat I was living in seperately, and the purchase of Car A from my bank account was to effectively return those funds. I never 'borrowed' the funds as we are a couple and we don't really act like that, and at the time I never dreamt that I would be filing for BR just a few years later.

My question, is what this will look like to the OR. I am sure they will want to establish who paid for Car A in the first place, which was my DH. There is no evidence anywhere in my account that I ever paid for it, but my DH doesn't have any proof that he paid for it either. His grandparent gifted the money to him which was in cash, but the grandparent is dead.

What a mess! How is this likely to be viewed?! I am so worried about it. My DH owned the car fair and square and he is so worried they will come after the money. I just don't know where he will stand with this and I am trying to find some reassurance for him. Thanks x

tinkerbell28

You're right it's a mess.

From what you've written it looks like your car.

Secondly the stuff you're saying to try and justify it and not show it as deprivation of assets. Sounds a lot like fronting.

Action_Jackson

When you say the car was 'in my name', what exactly do you mean? Car ownership can be a bit confusing because the registered keeper on the V5 document isn't necessarily the 'owner'. The owner is the one who paid for the car and has a receipt in their name.

I think you've made the whole situation sound more complicated than it is. The OR will just notice this initially:

"Car A was paid for out of my bank account a year ago"

You bought the car, therefore it's fair to assume you owned it, regardless of the history.

Whatever way this is spun, it either means either A. transferring assets at undervalue, or B. favouring one creditor over another. Neither of these is good.

Also, a lot of the severity will be down to how much we're talking about e.g. a £30k, £10k, £2k?

I've read the OR won't start proceedings to claim back assets from a third party of less than £5k. Read here: http://www.insolvencydirect.bis.gov.uk/technicalmanual/Ch25-36/Chapter31/part4A/Part%203/Part%203.htm

kepar

Have you still got a car and if so whose car is it?

Prothet_of_Doom

V5 lists REGISTERED Keeper, not Legal Owner, or main user.

Owner could be finance company or some other person, outside of your house. Keeper could be the 'transport manager, or finance manager, or someone who does the paperwork. Main user could be a sales rep, who uses the car most or could be the keeper and the owner.