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    • monkolli
    • By monkolli 16th May 18, 10:36 AM
    • 1Posts
    • 0Thanks
    Loss of vehicle after discharge
    • #1
    • 16th May 18, 10:36 AM
    Loss of vehicle after discharge 16th May 18 at 10:36 AM
    Hi All

    Just looking for some opinion and/or pointing in the right direction to someone who can answer the question.

    My father entered bankruptcy last year on the 2nd May 2017 and was discharged on the anniversary this year. My dad didn't have much at all in terms of assets but he did have a motorbike we valued at about 1500 quid in the original documentation. He had no other forms of transport so we were looking for exempt status for it which my father requested in the OR interview over the phone. The OR said an agent would possibly come to value it.

    We figured that would probably happen so as we understood it, a third party (myself) could make and offer if that were the case. Although after reading the insolvency technical manual and the insolvency act itself, we were under the impression if the bike exempt status was rejected (or approved) my father would be notified by the OR/trustee by way of writing. No such letter was ever received. in fact no further communication from anyone after the initial interview was ever received.

    Until yesterday, 2 weeks after discharge, an agent rang my father saying he had to come and look at his bike. My father stressed to the guy he had been discharged and that he though they had decided not to collect the bike on the basis it was his only form of transport. The agent said an email had gone missing resulting in the (1 year) delay, but he would get back to "them" and that my father may not hear from him again.

    Now this is a little grey. we don't now know whether or not his bike is his or not and its further complicated by the matter he has had 700 pounds worth of work done to it to fix an exhaust system and fully service it after the discharge (as we saw no point in fixing it up for someone just to take it away)

    So my question is, where is the line on the exempt status. if they haven't seized the bike or notified my father of intention to do so in writing during the point he was undischarged, can they still turn up out of the blue to recover it? and what happens with the additional costs my father has put into it post discharge?

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  • National Debtline
    • #2
    • 16th May 18, 2:10 PM
    • #2
    • 16th May 18, 2:10 PM
    Hi monkolli and welcome to the forum

    The OR has 3 years to deal with any assets, which means it is possible for an asset to be sold after discharge. Hopefully they will accept the motorbike is essential for your father's employment or domestic needs. If not they can look at the value to decide if it is worthwhile selling it.

    You may want to look to get a new valuation yourselves, now that some work has been carried out on it. For now it sounds like your father will need to wait and see what the OR does next. Good luck with it all.

    We work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps
    • luvchocolate
    • By luvchocolate 16th May 18, 4:48 PM
    • 1,765 Posts
    • 1,622 Thanks
    • #3
    • 16th May 18, 4:48 PM
    • #3
    • 16th May 18, 4:48 PM
    You learn something everyday.
    I knew the O.R had 3 years to deal with property but no idea it included other assets, I always thought when you were discharged with no I.P.A that was the end of it.
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