Controlled goods signed and going bankrupt

[Lip86]

Please help I have come here as I cannot find an answer.

Last week I had a high court baliff turn up without warning and clamp the car over a CCJ for subcontractor damages on site. I signed a controlled goods and gave him what I could and he left.

Since then I have filed for bankrupcy and it's been authorised. I have also specified that the vehicle is controlled goods on the bankrupcy.

I was left the car as he was aware it was up for sale and left me to sell the car to raise the funds.

Car will be hopefully be sold and of the week and I will notify the bankrupcy of this.

What happens with the controlled goods order signed. Is that the end of him or will they come back and try to gain access for the debt? I've read all sorts online and I'm even more scared now.

Am I liable even though bankrupt to still pay the item value of the controlled goods after sale? Or will they continue to turn up.

Please help.

Simon.

[zeke]

Once you are declared bankrupt, the bailiff must deliver up all controlled goods to the official receiver.

You must tell the receiver a bailiff has clamped your car. They will contact the bailiff company with a prescribed notice under Section 346(2)(a) of the Insolvency Act 1986 and the bailiff will deliver up the car.

If the car is sold, the bailiff must make over the proceeds to sale to the receiver.

This article explains the legal position, http://www.nationalbailiffadvice.uk/Ban ... liffs.html

[Lip86]

How do I edit post

[Lip86]

Once you are declared bankrupt, the bailiff must deliver up all controlled goods to the official receiver.

You must tell the receiver a bailiff has clamped your car. They will contact the bailiff company with a prescribed notice under Section 346(2)(a) of the Insolvency Act 1986 and the bailiff will deliver up the car.

If the car is sold, the bailiff must make over the proceeds to sale to the receiver.

This article explains the legal position, http://www.nationalbailiffadvice.uk/Ban ... liffs.html

The baliff left in my possession to sell the vehicle and allow me to purchase a new car to raise funds for the debt. The car is to be sold so do I notify him or notify the receiver and let them deal with it.

As it's a controlled goods can these be chased if the goods are sold and bankrupt? Does it still make it exempt from the bankrupcy?

[Lip86]

Baliff also stated that if fail to pay that anpr to police would be sent out to recover the car from the new buyer

[zeke]

That is highly irregular for a bailiff to leave a car in your possession. Normally they make a Controlled Goods Agreement, but in the case of a bankrupt debtor, the goods listed on the agreement are ceded to the Official Receiver on Notice to the bailiff.

If there is no controlled goods agreement, the car is not controlled goods and you are at liberty to use or sell the car. An official receiver in bankruptcy doesn't normally ask for vehicles to be made over unless they have value, but a leased car does not come into it unless the lessor wants it back.

I'm not sure of your last question, but if you are asking whether controlled goods are sold while the owner is bankrupt, then the bailiff must give the proceeds to the official receiver, but he can retain the cost "cost of execution" for selling the car, but not the fees because they are not "actual and reasonable" disbursements under regulation 8 and 9 of the 2014 fees regs.

Enforcement does not make anything owned by the estate of the bankrupt to be exempt from bankruptcy. The Official Receiver always has the first charge.

[zeke]

Baliff also stated that if fail to pay that anpr to police would be sent out to recover the car from the new buyer

That will fall foul of Paragraph 10 of Schedule 12 of the Tribunals Courts and Enforcement Act 2007 which states the bailiff may only take control of goods of the debtor.

An ANPR van lifting a non-debtors car cannot be sold because the title would never pass to anyone buying it. The interpleader claim is bone-crushingly expensive for bailiffs when they are ordered to deliver up the car.

[Will Goodfellow]

If there is no controlled goods agreement, the car is not controlled goods and you are at liberty to use or sell the car.

That is incorrect. Once the debtor has received a notice of enforcement, all goods owned by the debtor are bound so the debtor cannot sell any goods to evade enforcement action.

Schedule 12 4(1) & 4(4)

[Will Goodfellow]

If there is no controlled goods agreement, the car is not controlled goods and you are at liberty to use or sell the car.

That is incorrect. Once the debtor has received a notice of enforcement, all goods owned by the debtor are bound so the debtor cannot sell any goods to evade enforcement action.

Schedule 12 4(1) & 4(4)

That is depending on what the debt is for as goods can be bound form the time that a warrant is issued.

[zeke]

You have a point on the binding of goods.

But I disagree that binding the property in the debtors goods amounts to taking control.of them in the meaning of paragraph 13(1) of schedule 12.

[Lip86]

So am I in trouble now it has sold? I was going to purchase a cheap car in lines with bankrupcy and hand the remaining funds to the receiver.

[zeke]

I'm not sure what a cheap car in lines with bankruptcy is. It is best to contract hire and pay monthly. You can buy the car after your discharge.

There is no procedure to hand over money to an official receiver (OR). Bank accounts in your own name are frozen, but you are given money to live on. The OR is unlikely to push your income to burden the taxpayer.

You don't need OR permission to enter a contract hire agreement, but you do if you obtain credit.

You won't be in any trouble if you sold a car. For all intents and purposes, you sold it to raise money to pay your legal advice.

Its only parking tickets debts that bailiff companies like to assign to a car rather than the debtor.

[Lip86]

Ok i was on the understanding that selling controlled goods was a criminal offence. Just really concerned that it won't be the end of it and they will chase more for the ccj having a signed controlled goods agreement. I've nothing I'm not bringing in enough income other than to pay the basics

[zeke]

Selling controlled goods is not an offence. Interfering with controlled goods is an offence under paragraph 68 of Schedule 12 of the Tribunals Courts and Enforcement Act 2007.

There is no criminal liability for selling goods after the property in them have become bound.

The Controlled Goods Agreement is worthless because the debt being enforced can be added to the BICQ and written off.

If you do not have enough income, then go online and see if you are eligible for benefits.