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Can I Sell My Car To Pay Loans Before Going Bankrupt?

Question:

Can I sell my car to pay of the personal loans from family and buy a car for under £2500 before i go bankrupt ? my car is current worth £ 5500 and is a 4X4.

Answer:

The quick answer is no, however you can do this, BUT…the Official Receiver in your bankruptcy has the authority to reverse these transactions. By selling the car and paying off family and friends you are making them preferred, a no, no. The OR can contact them and ask for that money back, chase them for it, or even make them bankrupt for it. Not pretty. Bankruptcy Assistance Service

Thank you for letting me help you.

Jon

If you have a bankruptcy question you’d like to ask, just ask using this online form. All help is free.

Source: Can I Sell My Car To Pay Loans Before Going Bankrupt?

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