www.iva.co.uk

Hi, I am Contemplating bankruptcy as i have been declined on a consolidation loan for £25,000 and have gone through the motions on an IVA but my advisor has said it's at a high risk of being declined due to some awkward creditors. we have a family car and a scooter and although the car is registered in my name it was purchased with money my wife recieved from a compensation claim as my wife did not have a driving license it was agreed that once she passed her test the car would be transferred to her as I had my scooter for work and she needed the car more for the kids, so my question is this, if i transferred registration of the vehicle to her even though its her car would the courts frown upon this and assume i am trying to get one over on them? thanks in advance

Hi, do you use the car for work? How much is the car worth? The OR could see it as you disposing of assets so you can't really transfer it over. If you need a car for work they should allow you to keep it providing it's value isn't too much, approx £2-3k, depending on OR's discretion.

The registration document only reflects the registered keeper, and not the owner of the vehicle.

Get the evidence together of your wifes ownership of it first. If you decide to go bankrupt you will need to know that even if you transferred it to your wife the Official Receiver will find out about it from a DVLA search. If he finds out about it this way then he will be suspicious from the off. Clearly so long as you can prove she owns it then you ought to be OK transferring it but bring the matter to his attention rather than the other way around.

How much is the car worth by the way.

So far as your IVA is concerned, who are the creditors that your advisor says might scupper it?

Hi

There is a difference between the registered keeper ( the name on the registration document) and the owner, i.e. the legal owner and the person who purchased the car.

if the money can be proved to be your wife's and if she purchased he car - i.e.wrote the cheque from her bank accountit would be stratightforward to demonstrate this and the reason that it was registered in your name was for a better insurance deal.