|
Bankruptcy Case Studies In Respect Of "Your
Car"
If you have not yet read the law set
out in section 283 of the Insolvency Act then click
here before considering this case study.
Background
David is married to Clare. Clare is a
hard worker earning good money while David flits in and out
of jobs. Clare bought David's car, a year old Mondeo, out
of her own earnings.
During Davids latest period of unemployment
he gambled away (unknown to Clare) their joint savings and
incurred credit card and loan debts of £20,000.
A creditor made David bankrupt two weeks
ago.
Question
Can the Official Receiver (O.R.) sell
the Mondeo and retain all the proceeds?
Answer
The O.R. cannot sell the car used by
David even though the car is not needed as David is unemployed.
The reason for this is that the car belongs
to Clare and is therefore an asset which is kept outside of
David's bankruptcy.
|
