I have recently been made bankrupt. I owed ex and he took car as payment

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James.02

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Post by James.02 » Fri Oct 17, 2014 8:21 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?
 
 

Foggy

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Post by Foggy » Fri Oct 17, 2014 9:02 am
Hi. The bottom line is that he is a beneficiary, along with your other creditors and must stand in the same line as them to await a pro-rata dividend.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
 
 

Michael Peoples

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Post by Michael Peoples » Fri Oct 17, 2014 9:19 am
If he does not give the car back he could be made bankrupt himself. Effectively he has been 'preferred' over other creditors as he has received payment for his debt whether everyone gets nothing.

He could speak to a solicitor but it sounds cut and dried to me and he must hand over the vehicle.
Michael Peoples | McCambridge Duffy Insolvency Practitioners
http://www.mccambridgeduffy.com
If you would like to talk to me about proposing an IVA or have any questions at all please visit www.mccambridgeduffy.com
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