Bankruptcy and a Car

bigrigger1973

I'm in the process of getting advice from Stepchange and the initial suggestions from their website was either Management Plan or Bankruptcy. I see the BR option as being a faster route to dealing with my issues rather than having a Management Plan hanging around my neck for years potentially.

I have sold my car to a friend of mine who has offered to help me out financially as I had an unexpected bill come in which I had to pay. He has offered to lend it to me until I can buy my own as long as I pay all of the running costs, insurance etc. How do people think the OR will view this? Will they be happy with this or want me to own another vehicle - I need to have use for one for work etc. and will have the running costs in my budget.

Cheers

standalone

Hi,

The first question is how much was your car worth and did you sell it for the market value.
Second point is can you account for what has been done with the money you received for the car, then you can get on to what the OR will think about your arrangement.

Cheers for now.

TheGardener

Standalone is right - if you sold the car for its true market value and then used the funds to pay for urgent essential living costs that you can evidence, then you have a case to make to the OR. However, if the car was sold for less than it was worth and/or you used the money to pay just one of your creditors - not only can the OR reverse the transaction and force your friend to return the car for sale as an asset and demand the creditor who benefited returns the cash - you could end up with a BRO...and the OR can go back at least a couple of years on this sort of transaction.