Author Topic: Repossession  (Read 34254 times)

Uptomyearsinit

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Repossession
« on: Oct 17, 2014, 02:46:57 AM »
Hi hope someone can help me, I have recently been made bankrupt and I owed my x partner money
So he took the car as payment now they have sent a letter to my x partner requesting the full value of the car and have passed his details to a law firm acting on behalf of the official receiver.  my x partner sent a letter stating that I owed him money but did not state how much I owed now they have responded saying he is a beneficiary and the car was transferred at a under value and with nil consideration  under section 339 insolvency act and have given him 14 days to respond.  he has stated in a letter that it was not a under value and she owed him the full value of the car. Can they repossess the car and take further action under section 339 of the insolvency act?

Richard Stockburn

  • Jr. Member
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  • Posts: 15
Re: Repossession
« Reply #1 on: Oct 20, 2014, 04:13:01 PM »
Hi there

There are two issues here: People entering into bankruptcy sometimes try to 'hide' assets by transferring them into the names of relatives, thus the 'transferring an asset at undervalue' allegation. The second issue is that by paying a particular party ahead of any other creditor makes them a 'preferred creditor', something which is not allowed under the legislation. What will they do about it? They could seize the vehicle and sell it, then simply make your ex another creditor who will lose out on the money owed. A lot will depend on the value of the car. If it's worth around £800 they might not bother, but if it is worth £3,000 plus, they may well take action. Can they do this? You bet they can.

Richard Stockburn bankruptcy.co.uk 07894 481175

pickledpepper

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  • Posts: 8
Re: Repossession
« Reply #2 on: Oct 28, 2014, 10:58:21 PM »
Why did you tell the receiver about the car ?