Author Topic: Help with a car listed as an asset become an issue.  (Read 1112 times)

Toko

  • *
  • Posts: 1
Help with a car listed as an asset become an issue.
« on: Apr 03, 2010, 06:34:41 PM »
Hi,
 
As someone suffering from a mental illness I was helped apply for bankruptcy by a welfare rights advisor. The listed my car as an asset. The car was broken down, without tax, insurance and undrivable. It was parked on the road and was accrueing fines from the DVLA for not having a road tax disc. I could neither afford to pay for the car to be fixed nor afford to move it as I am on Incapacity Benifits.
Someone contacted me about the car prior to going bankrupt and afford to take it away and give me £400 - 500 for it. I was desperate for the money to pay for my bankruptcy and a £90 phone bill so I did not get cut off the phone and internet (my lifeline to the world). The buyer wanted to pick the car up on the following Mon, so the Wed / Thur my mother posted down some postal orders to cover the cost of the phone bill and bankcruptcy till I got the cash for the car 3 days later.
 
I informed the OR - and told them I gave my mother the money back but they have written to her asking for it back off her.
In reality, my mother ended up refusing to accept the money back and I kept it and used it to pay essential bills and living expenses ... so I am left with only £280 of the £480's.
 
Is there anything I could do - the car was a negative asset in terms of costing me in fines ... which I owe several hundred pounds worth.
 
Have I any options here ?

gordonblair81

  • Full Member
  • ***
  • Posts: 23
Re: Help with a car listed as an asset become an issue.
« Reply #1 on: Apr 22, 2010, 03:59:04 PM »
toko
 
If you ask me in insolvency terms an asset is only something valued over £1000 so by the sounds of it your car is not or was not.
 
Speak with your trustee (person administering) your bankruptcy and explain the situation to them if you could go to CAB's etc however they will all point you back to the trustee.
 
Hope this helps.
 
Gordon Blair

Sovereign

  • Sr. Member
  • ****
  • Posts: 81
Re: Help with a car listed as an asset become an issue.
« Reply #2 on: Apr 27, 2010, 03:24:14 PM »
Toko,


Broadly Gordon is right BUT did your Mother advance you the money prior to BR or after? If it was before then you have effectively treated her as a preferential creditor in repaying her. You should have waited. Under Section 341 of the Insolvecny Act 1986, the OR is within his rights to ask for the money back. However, it is such a small amount I am sure that he will not want to instruct Solicitors and commence legal action.


All should be ok. As Gordon says, speak to the OR and tell him your Mother cannot afford to repay the money.


Steve
Sovereign Consulting