Receiving a gift (car) and bankruptcy Help!

Worried3648

Hi all, 

I have everything ready to submit my bankruptcy application, I was waiting until Monday when I get paid so I can draw some cash out before my accounts are frozen.

 I am aware this sounds like a bit of a crazy made up story but it's not....

My doorbell rang tonight unexpectedly and a family member has bought me a new car (I have an old banger that keeps breaking down It is essential I have a car for work commute and children access to their other parent) the car is worth around £8k my wider family have no idea of my financial situation but knew that my car was on it's way out apparently she bought this from a friend for cheap who was emigrating last year and has decided she has no use for it (she already has two cars)

 I am now panicking that this is classed as an asset of mine, I didn't buy it and as far as I'm aware the registered owner Is the family member. She is on the receipt for the payment for the car and has registered me on the V5 as registered keeper!

I am in a huge panic now that this car will be classed as an asset! Can anyone help?

Bankruptcy was my best option as I didn't have any assets if this car is classed as an asset would it be taken if I did an Iva?

Apologies if this rambles on a bit. Thanks

Bev65val

Can I ask who is your IVA with I as I have an IVA with Freeman Jones I wish I had never got involved with them.

sourcrates

Bev65val said:

Can I ask who is your IVA with I as I have an IVA with Freeman Jones I wish I had never got involved with them.

The OP is not in an IVA, they are considering Bankruptcy.

sourcrates

Cars not yours, not bought by you, not registered to you, your family member just chooses to park it on your drive.
Seriously, use your old banger for the next 12 months.
I would not mention it as it’s not yours but it may muddy the waters.

Worried3648

sourcrates said:

Cars not yours, not bought by you, not registered to you, your family member just chooses to park it on your drive.
Seriously, use your old banger for the next 12 months.
I would not mention it as it’s not yours but it may muddy the waters.

Thanks Sourcrates, unfortunately my old banger has gone (they are scrapping it for me) I had rung my mum in tears yesterday as it had a hole in the exhaust and I just didn't have the money to pay for it, I think that's what sparked the surprise car gift.

If I insure my aunt as a main driver on my policy and she is the registered owner with proof of payment do you think that I would be able to keep the car?

Thanks

Grumpy_chap

If you insure the car with a main driver that is not, that can be considered as "fronting"

Worried3648

Grumpy_chap said:

If you insure the car with a main driver that is not, that can be considered as "fronting"

 Sorry I meant a named driver not a main driver

HouseTargaryen

IVA you can keep your car as long as it's not an expensive one, which it isn't. Even bankruptsy you wouldn't have to sell your car if you need it for work and it's not an expensive one. Just be honest about the asset, you'll be fine. 

MalMonroe

A few years ago my friend's daughter went bankrupt and she needed a car for work but only had an old banger (it seems to be a familiar thing as people just can't afford to spend on their cars). Her parents wanted to buy her a car but she was worried as she'd entered into the bankruptcy. They bought her a car anyway but my friend was named on the ownership papers and she insured the car for them both to drive. 

Anyway it all worked out in the end because the car wasn't owned by my friend's daughter but she was able to use it and the bankruptcy eventually ended and now all is well. 

I'm just telling a story here, you understand, not giving advice or anything. 

sourcrates

HouseTargaryen said:

IVA you can keep your car as long as it's not an expensive one, which it isn't. Even bankruptsy you wouldn't have to sell your car if you need it for work and it's not an expensive one. Just be honest about the asset, you'll be fine. 

Its not an IVA its Bankruptcy the OP is considering.

fatbelly

In bankruptcy if you can prove it is essential you can exempt one car worth up to £1000.