Wife's car in bankruptcy

dd8103

Another question which has come up where helping my Dad with his bankruptcy petition. My Mum (they are married) has a small car, which was payed for on HP a few years ago from an account which was, at the time, a joint account. Dad was the only earner in the family at the time - Mum just receiving her state pension. His salary went into the joint account, Mum's pension went into her own account.

The car is registered in Mum's name but I understand this does not mean she is necessarily the legal owner of the car given the above. I am not sure how we deal with this on the form.

Do we give up the ghost and say it is his car as he paid for it despite the fact it is in her name?

Or do we include it in the bit where it says he has access to a car which is not his? He is named on the insurance policy as a named driver, albeit he barely drives it and has been told for medical reasons that he should not actually be driving. Does being a passenger mean he still has access to it?

We were tempted but ultimately scared not to declare it at all given that even if we say it is not his car he clearly does have access to it. That said, I assume the OR will be able to look back through Dad's bank statements, will see references to the car finance having been paid off and query where it is. He will not have declared the sale of the vehicle elsewhere on the form.

The car is not worth much, possibly 2-3k in the context of unsecured debt of 100k plus. He has no other assets worth declaring on the form.

Mum and Dad did previously live in the middle of nowhere but now live in a small suburban town (not much there but does have a supermarket, doctor, chemist and pub) on a well connected bus route. Is it still worth them trying to argue that they need the car to get about?

Finally, I assume that trying to conceal the car once you have declared it on the bankruptcy forms in the event they turn up to take away as part of your assets in bankruptcy is a no-go. That is if the bailiffs don't get there before - Dad owes money to HMRC and is delaying submitting his bankruptcy application so long that I am worried it may come to that in the interim.

Apologies for the barrage of questions, we are going round in circles with the form.

Decoctor

Since your dad no longer drives on medical grounds he does not have access to a car which "he can drive". As to ownership don't you have a good argument to say he has no interest in it because he paid for it in his capacity as breadwinner in the usual pattern of family expenditure at the time, and the car is in mums name and the HP was in mums name and he does not drive? You should mention this to the OR either in the form or in interview - be frank and honest with the OR and if there is any doubt you should hopefully get the benefit of it.

Decoctor

TheGardener

Honesty is always the best policy where the OR is concerned. If the HP agreement was in your Dads name and paid for from his earnings then I suspect the OR will consider the car to be his asset regardless of whether he drives it or not. You can make a case for retention of the car but that decision will rest with the OR. If you make a strong case for the need for a car then the OR may sell it as an asset but you will be given £1000 to buy another one. However, if you let the bailiffs get it - no such £1000 will be available. Get the BR done on his terms , not on HMRC's.
My cheap motor has served me well without fail for 6 years now.

dd8103

Many thanks for both replies, really helpful, we will just be frank on the form then but at the same time try to at least explain our view of life and reasons why should hopefully be able to keep it. Thanks again, much appreciated.