How will partners BR affect me?

Allthekids

1st time here so please go easy!Back story - partner 40, me 46. 5 kids between us(all live with us)
House in my name. Mortgage in my name. All household bills in my name
His ex wife racked up a load of joint debt whilst he was working away.
He has just gone bankrupt. He used a company called Invictus to fill out all the forms. He DIDNT tell them that he had a vehicle.
When he had his phonecall from the insolvency people, he told them that he had sold it 15 months ago for 4k and used the money to pay off some debts etc. in actual fact he transferrd it into my name in April this year.
They have written to ask for DVLA proof of new owner etc.
I told him that all they do is put his name, DOB and NI number into their computer and everything about him comes up. Bit like Big Brother is watching you
What I am concerned about is that they will want to investigate me. I have no debt whatsoever, and never have. I have wealthy parents(who know nothing about this) and a couple of properties of theirs are in my name. We have nothing in joint names.
He is ringing them today to tell them that he lied to them.
What is likely to happen to him?

tinkerbell28

It would have been found out anyway.

If he's lucky a BRO, if he's unlucky a prosecution. The fact he is coming clean without being exposed later down the line will go in his favour.

They can come after you however for the car/money. He has disposed of assets to hide them from the or. He would have found out anyway, so he can chase you for the car. That's where it stops.

Allthekids

What's a BRO?Do you mean that they can seize the car?
Thanks for your reply

tinkerbell28

Allthekids wrote: »

What's a BRO?Do you mean that they can seize the car?
Thanks for your reply

Bankruptcy restriction order, where he is in effect bankrupt for as long as the OR decided. That's if he is lucky in my opinion. He's lied to a court and some acting on behalf of the court at the end of the day and it's not something they will take to kindly to.

Yeah he can come after the car, or the cash value of it from you. As basically he had a 4k asset which he gave away to his partner before going bankrupt so the OR wouldn't take it.

As you;re now finding out, they do check, so they will find out and will be wanting that back, as at 4k value then he wouldn't have been able to keep it.

Allthekids

Thanks very much. What's the worst that can happen?When you say prosecution, does that mean jail!!!?

tinkerbell28

Allthekids wrote: »

Thanks very much. What's the worst that can happen?When you say prosecution, does that mean jail!!!?

Ultimately yes.

He has lied to a court and court officials. So yes prosecution is an option. Then the outcome would be decided after.

He will just have to see.

Here is an example

http://insolvency.presscentre.com/Press-Releases/Four-months-for-lying-bankrupt-who-claimed-loan-sharks-took-his-money-68b27.aspx

jamesd

Allthekids wrote: »

When he had his phonecall from the insolvency people, he told them that he had sold it 15 months ago for 4k and used the money to pay off some debts etc. in actual fact he transferrd it into my name in April this year.
...
What I am concerned about is that they will want to investigate me.

At least initially you appear to be a co-conspirator with him. But you haven't yet directly lied to anyone so far, it seems.

It's not particularly likely that they would want to pursue you but if they want to get any form of comment from you, discuss matters with a solicitor before communicating with them. Early legal advice can save a lot more money or unpleasantness later. A solicitor might do something like suggesting an offer of 20% more than the value of the vehicle be paid to creditors combined with a no prosecution of you undertaking from them.

Read the story of Chris Huhne and Vicky Pryce. Ensure that you do not act as Vicky Pryce did and attempt any form of deception. That's an easy way to get yourself into more trouble and avoiding it is why I mentioned you getting legal advice before communicating with them.

Allthekids

I haven't lied to anyone. No one has asked anything me. I am not involved in my partners finances.
I believe that honesty is the best policy in all things.
He was given advice from his divorce solicitor of all people, who told him to get all his assets out of his name before attempting to go BR. It was his solicitor who in fact suggested that he go BR.
He just wants a fresh start as the ex wife (an ex accountant) and alcoholic racked up all this debt. She dealt with all the finances, and because of her accountancy background, he foolishly went along with everything.
He was worried about losing his vehicle as he cant work without it.

Action_Jackson

He's likely to get a BRU/O that will extend his BR restrictions for a few years (as little as 2, as much as 15).

Regarding the car:

1.4A.61 Realising transactions at an undervalue where amount to be recovered less than £5,000
The antecedent recovery contractor engaged by The Service (see paragraph 31.4A.5) will only accept instructions where the amount to be realised is more than £5,000. Where the amount to be recovered is less than £5,000, it is unlikely to be worth the cost of action other than entering into correspondence with the beneficiary requesting payment. Paragraphs 31.4A.17 to 31.4A.21 of Part 1 of this chapter give information and advice on the steps to be taken where the recovery is likely to be below £5,000.

Read it here: http://www.insolvencydirect.bis.gov.uk/technicalmanual/Ch25-36/Chapter31/part4A/Part%203/Part%203.htm

Allthekids

Thank you all. To be honest when a solicitor advises you of something, it seems feasible to just go along with it.
I hope he doesn't end up in jail. The kids will be devastated. So worried

jamesd

Allthekids wrote: »

He was worried about losing his vehicle as he cant work without it.

Bankrupts can keep a vehicle of suitable value that is needed for work. It can also be valued and bought at an agreed price from those handling the bankruptcy. If it's considered to be too valuable to be kept he or you could offer to pay the difference in value.

If the true value of the car is £4,000 it's entirely possible that he has a need to keep it, rather than do anything like selling it and buying a cheaper one.

Jail is unlikely, just good to be a bit cautious.