Sell car as undischarged bankrupt?

JingJang

Hello People!

Iam a undischarged bankrupt and when iam gone bankrupt the official receiver allowed me to keep my car.
I got a letter from him that says that my car is exempt property.

Now my question is: can i sell the car and use the money for whatever i want?
Or is the car only exempt as long as need it and if i don´t need it anymore i have no right to sell it or the offical receiver can handle the money as a windfall and collect it?

Regards

nikkirr

I think its exempt as u need it for work etc if u sell whilst undischarged they wud use the money towards ur assets

TheGardener

Selling a car is not a change of circumstances so there is no need to contact the OR. The costs originally allowed for the running of the car - presumably you will now have increased public transport costs?

National_Debtline

Hi JingJang

Welcome to MSE. I would be inclined to agree with nikkirr. The car was not claimed as an asset by the official receiver (OR) because they agreed it was essential for you to keep it. If you are willing to sell it that suggests the vehicle is no longer essential. As you have not yet been discharged you do have to report changes in your circumstances to the OR.

The technical manual states the following:

30.152 (Potentially) exempt vehicle and the official receiver as receiver and manager
If a vehicle is considered to be exempt property the official receiver should allow the bankrupt to keep control of the vehicle provided it is adequately insured for third party liability, following the guidance in paragraph 30.153.
If the vehicle is of excess value (see paragraph 30.141), the bankrupt should only be allowed to keep control of the vehicle if it is comprehensively insured by him/her and he/she gives the official receiver a written undertaking that only he/she will use the vehicle.

30.153 Action to take where (potentially) exempt vehicle is left in control of bankrupt
Where the vehicle is left with the bankrupt (see paragraph 30.152), the official receiver should write to the insurers of the vehicle asking them to note his/her interest in the policy and to notify him/her of any activity in relation to the policy. The bankrupt should be notified in writing that he/she cannot dispose of the vehicle pending the appointment of the trustee. The bankrupt should also be informed that, although the official receiver has allowed him/her temporarily to retain possession of the vehicle as potentially exempt property, this in no way binds a subsequent trustee, who may take a different view as to whether the vehicle is exempt.

Susie
@natdebtline

peterkay369

If you dont need the space, one option could always be to declare the car sorn and keep it off the road until your bankruptcy period is over, and then sell the car after? I cant imagine the value will drop dramatically over the next 12 months.

Johnsmith2016

Keep the car until you are discharged.