question category: Bankruptcy

Can I keep my car in the event of bankruptcy?
Submitted on: 8th Jul 2009 by Non-Member | Total Answers: 1

I am threatened with a personal bankruptcy action against me. I dispute the claim but in case I am taken to court and it does all go against me I wish to know whether or not I can keep my car. I find information on this matter a bit confusing on the web, most sites talk about being allowed a 'reasonable' car.

My situation is that I do not own any assets from my car which according to the parkers guide private poor is worth 8400

I do not have any debts aside from an overdraft of 6k

I have been advised to sell my car privately and put the money into my private account, and not paying it off into my overdraft. I do want to drive a good a car as possible without the possibility of it being taken away if I am made bankrupt. What value car can I drive?

Many thanks,

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Re: Can I keep my car in the event of bankruptcy?

There are surprisingly few hard and fast rules in bankruptcy but there are plenty of anecdotes - especially on the internet.

Here is the official guidance leaflet - look at page 10.

http://www.insolvency.gov.uk/pdfs/guidanceleafletspdf/guidetobankruptcy.pdf

In the event of bankruptcy you will no longer control your assets,all assets in theory become bankruptcy assets. The Official Receiver will decide whether you can keep them.

If you currently know (or ought to know) that you are insolvent you must not hide an asset or sell it at less than market value.

I think its likely the OR would sell your car and make an allowance for you to buy a modest replacement. Everything is done case by case.

Its pretty unlikely someone would make you bankrupt if you have no assets - unless its someone with a grudge against you or its the Inland Revenue. It would be a very expensive process for them and you'd be debt free inside a year.

Submitted on: 9th Jul 2009 by Darren Member

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