Honesty v Practicality

[TomThumb]

OK, so I know this is a little uncomfortable to ask but I could be in a position soon where I am forced to petition for mine and my partner's Bankruptcy. I have a car which I own outright and it's worth around £10k, if I sell it now for cash and buy a cheaper one (around £3k which I think is allowed in BR) do I have to declare the other £7k? Would anyone actually know it existed?

I am not a dishonest person but I do want to try and protect my family with an emergency fund should this all have to happen and a £3k car will not last me for the 5 or 6 years that the credit black listing will take to clear.

[Adam Davies]

Hi
The Official Receiver can look back on transactions and has the authority to reverse any transactions so whilst I fully understand your reasons you must be honest and declare the surplus funds
Regards

[TomThumb]

It was bought in cash and sold for cash so no transactions in the bank to trace or question. How far they can snoop? Can they contact DVLA and check what car you have registered to you or ask your insurance company for the history?

Appreciate you can't advise me to be dishonest and it's not in my nature, however I am loathed to just hand over this cash as I have worked so hard to get it since my IVA started.

If I just said I had spent it over the last few months???

[Sinking Fast]

Hi Tomthumb,

I fully understand you wanting to position you and your family, and to get your "ducks in a row", before petitioning BR.

First off, why BR?

Have you researched your options, and spoken with a professional?

In respect of your vehicle, the OR will want to sell the vehicle, and give you 2k to purchase another vehicle. If you preempt this action, you could use some of the funds to pay for your BR, and after purchasing a vehicle no greater than 2K, put the rest aside for the OR/creditors.

If you attempt to siphon this excess off to a savings account/ friends account, the OR will; to put it bluntly crucify you.
They have far reaching powers, and have access to many databases one of which I am sure is the DVLA. If you post on the BR website, the sister site to this one: www.bankruptcyhelp.org.uk there are a number of forum professionals who will corroborate this.

In fact I would urge you to seek professional advice on this matter, so has not to leave yourself open to the repercussions if you did take the wrong route.

Gd luck.

[TomThumb]

Thanks, that's what I needed to hear and points duly noted.

IVA is my preferred route but it is very hit and miss if we will get accepted due to a low dividend and some other contributing factors, hence needing to look at alternatives.

[Skippy]

Just to confirm the OR can check with the DVLA.

Good luck with your IVA x

[Sinking Fast]

Dont be put of by a low dividend. Before our IVA was accepted, we had concerns similar to yours, in respect of a low dividend. To be specific; we owed £135k, and were looking at offering 26p in the £. Thanks to our IP; Melanie Giles, it was accepted.

Do make sure you speak to 2 or 3 companies, then take your time to digest the information you are given.

Gd luck.

Thanks, that's what I needed to hear and points duly noted.

IVA is my preferred route but it is very hit and miss if we will get accepted due to a low dividend and some other contributing factors, hence needing to look at alternatives.

[Sinking Fast]

Cheers Skippy, I thought that was the case.

Just to confirm the OR can check with the DVLA.

Good luck with your IVA x