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Will My Parents Have To Hand Over Their Car In My Bankruptcy?
Question: It is currently looking that I will have to go bankrupt after loosing my job a few months ago.
My question is will my parents have to hand their car over.
8 months ago when things were looking good I bought a car for around 6 thousand. I was away with work so I transfered the money to my patents who then paid for the car with that money, we actually still have all the paperwork and the car was put in my name, my insurance etc.
After loosing my job about 2 months ago I had to sell my car quickly, unfortunatly I could not get what I paid for it as it was broken. My patents then gave me the Market value of the car, 80% of the value in cash, sone of which was paid into my account and sons I left on me bur I used for rent and deposit on a room. The rest was paid a month or so later when I found a house to live in and they paid for the first month and they also got me an old car with a value of less than £1000. At the time I wasn’t even thinking of
bankrupcy so I didn’t even think about issues between myself and my parents.
My parents are looking to sell the car anyway, once it is working properly, but I would just like to check that they won’t be effected. When I bought the car I had 1 loan remaining and at the time I wasn’t due to make repayments.
Answer: It is difficult to fully state what may happen in your bankruptcy.
If the car was yours as you say, and you sold it, and you received the market value (or close) the Official Receiver will want to know the details of the transaction and what you did with the proceeds from the sale.
It may be OK as you can show what you used the money for and it all seems reasonable and basic living costs.
So while we cannot second guess what the OR may do, from what you have stated it could be fine. Worst case scenario the OR feels the car was disposed of not properly and would want the money back or the car to try and have it sold to pay into the bankruptcy.
Thank you for letting me help you.
Jon
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