Can you be gifted a car during bankruptcy

Js1865

Hello,

I filed for bankruptcy in October 2018. I had very little income and no assests so don't pay anything. I currently use my partners car, which he has on finance. He is has decided to declare bankrupt (he will still be making payments to the OR). Now he will obviously loose his car meaning we are carless. Which is an issue as we live in the middle of nowhere with three young children and the school is 8 mile away.

A family member has offered to buy me a car as a gift (early inheritance from them). They are planning to send me the money to go car shopping as we don't live local to each other so would be inconvenient for him to come pay for the car. He has offered us fairly decent amount of money to get a reliable car so the value will be more than £1000

My question is obviously I am in undischarged bankruptcy. Can the car go in my name or will the OR take it from me? I have read online as it is a gift after declaring they can't but would hate to do this and then loose the car.

Thanks in advance!

debt_doctor

Hi,


If you are still bankrupt, this gift will be seen as 'after acquired property' and will be normally seized as an asset in full. Whilst if you PROVE a need for a car, a vehicle can be exempt - it sounds like it would still be of excess value, sold and a cheaper one provided.


It would be best that the generous person buys the vehicle themselves and retains ownership of the vehicle, whilst you have use of it.


DD

glennevis

I think if the generous person buys a car they must purchase it themselves. And get a written receipt with their name on stating who bought the car.

panic_stations

This shouldn't be too difficult
Your relative buys the car and makes sure they have the purchase receipt made out to them (probably a financial paper trail too would be useful). You get yourself put down as the registered keeper on the V5 document. That's fine as it's accepted that the registered keeper is not necessarily the legal owner of the vehicle. Then you tax/insure it etc as normal. Should be fine assuming your just going for something up a step or two from an old banger. If it's a brand new £60k vehicle then you might have a few questions to answer...

maxmycardagain

if hes going BR and has bought a car the IS might want it....

R9251

Firstly, your partners car may not be taken off you, if (he) you can prove you need it and you can afford to keep it. I've just been through this. My car Value was £7000 and the OR allowed me to keep it because without it, i could not get to work (25 miles away) and more importantly, there was little or no equity, as on finance.

The next hurdle though, was a clause in the finance agreement, which i did solve, but nearly lost the car to the finance company. I can provide more details on this if needed.

Secondly:
The value of the potential gifted vehicle is irrelevant, as long as the person buying you the car, buys it themselves (with their cash and does not give you the cash to do so) and keeps the car in their name. You don't have to be the registered keeper, but as described above, being so, also doesn't make you the legal owner. That said, if someone else owned the car, registered it in their name, insured themselves and you as the main driver, it would probably solve your situation, with very little risk. You just need to describe insurance/ tax/ running costs on the use of a vehicle that you don't own, to the OR.

So, you go car shopping, get them to pay for it (with their own funds, from their own account), register it, insure themselves and you (as the main driver) and....no problem....you do not own and have not inherited anything.

If in doubt phone the Official Receivers and ask the question...they are pretty helpful. While they can't and wont tell you how to get around the problem, they will tell you their actions in the various situations, allowing you to work out whats best, by process of elimination.

I called to ask about currently not working, undischarged and gaining employment. The income would be taken from me, as my budget from my pension, already allows for my expenditure....so, no point in me working, while undischarged, as an IPA would invoke for 3 years. However, if i ride out the 12 month bankruptcy and get a job the day after discharge, no IPA can be made and i get 100% of my wages. I had a great time pushing the OR into a corner, trying to get them to agree that it was a good plan. We laughed about their inability to agree, but they kindly hinted enough, that it was a good plan, to avoid an IPA for 3 years, through 12 months short term pain.

maxmycardagain

its a loan car, its not yours

maxmycardagain

You don't have to be the registered keeper,

to be insured you usually do

RosePatchwork

you select the car, and they can make the payment directly to the Garage, so it does not go through your bank.

Lawcraft

Js1865 wrote: »

I have read online as it is a gift after declaring they can't but would hate to do this and then loose the car.

Too risky. Better register it on other person.