Bankruptcy income and expenditure section

Ebonydeluxe · 18 November 2017 at 10:52AM

Hi all, quick question. If my income and expenses section of my bankruptcy form is coming up with more outgoings than income because of one of the two cars I have on HP (if removed with associated costs for insurance and road tax would put me within budget with only one car on HP I am hoping to keep paying)

1) Will this be accepted by an OR?

2) Will it almost guarantee that the vehicle I am trying to make the case to keep will not be allowed to be kept?

3) If I have to give up both vehicles will this mean the OR will reassess the budget and deem the payments I would have been making towards the HP and associated costs could go towards an IPA?

4) The fact that no car would mean having to pay taxi fares instead, would I be allowed to add this to a revised budget?

5) If I can get someone to say they are to keep up payments for the car, would the OR accept this and still make me pay an IPA?

6) Am I better off accepting that both cars will be repossessed and adjust my budget to include cab fares, to avoid the money I would have used for the car being deemed as excess income and put into an IPA?

Thanks in advance.

tigerfeet2006 · 18 November 2017 at 10:40PM

Ebonydeluxe wrote: »

Hi all, quick question. If my income and expenses section of my bankruptcy form is coming up with more outgoings than income because of one of the two cars I have on HP (if removed with associated costs for insurance and road tax would put me within budget with only one car on HP I am hoping to keep paying)

1) Will this be accepted by an OR?
Yes a SOA that is over will be accepted if it is reasonable ie Groceries at £600 for one person and you say you are trying to cut your expenses.How far are you over?

2) Will it almost guarantee that the vehicle I am trying to make the case to keep will not be allowed to be kept.
Fairly much yes. But as I have said to you before it will be the HP company that will put the brakes on. They will be the one to take the car.In the 11 years I've been around I can count on 1 hand the people who've managed to keep the car from the HP company. I really honestly believe that you're best bet is to stop paying the HP on the 2 cars for a couple of months, save the money you would be paying towards the HP and buy a car outright. Then go BR.

3) If I have to give up both vehicles will this mean the OR will reassess the budget and deem the payments I would have been making towards the HP and associated costs could go towards an IPA?

Yes. This is why you need to do the above BEFORE you go BR.

4) The fact that no car would mean having to pay taxi fares instead, would I be allowed to add this to a revised budget?

Possibly as long as they reasonable and not half your budget and you can't get a bus. This is why you need to get your ducks in a row BEFORE BR.

5) If I can get someone to say they are to keep up payments for the car, would the OR accept this and still make me pay an IPA?

If the HP company will let someone take over the HP agreement and then the person who has taken over the contract lets you use the car as long as you pay the running costs ie: petrol, MOT, servicing, insurance. Then the OR would most likely be ok with that.

6) Am I better off accepting that both cars will be repossessed and adjust my budget to include cab fares, to avoid the money I would have used for the car being deemed as excess income and put into an IPA?

As I have said before you would be better stopping the payments for both cars, use the cars until repossession or until you have saved enough money to buy a car outright (£1k-£1.5K in BR) and then go BR. Much less messy and simple.

Thanks in advance.

Hope that helps.

Ebonydeluxe · 19 November 2017 at 3:25PM

Thanks Tigerfeet2006
I am over by around £400, but still had to cut back to get to this. Was around £6-700 over when initially calculated SOA. I think I should amend to the higher SOA to ensure my budget is realistic. I actually cannot believe how much I actually spend conservatively, during the sales comes to so much. But I guess that is because I used the catalogue to purchase clothing for the kids it didn’t feel like it was so expensive. Actually budgeting for it was eye opening. I had left out so much in my SOA completed in my initial post. I forgot about many aspects of my families living expences.

I think I’m scared of being hounded by 16 creditors + the two HP companies if I don’t submit the bankruptcy forms next month. I have stopped paying my creditors and awaiting responses to my letters of token £1 payments. Ideally, I would like to have a car sorted over the Christmas period because this is when the insurance runs out.

On the plus side. My fridge now has food inside. I can’t believe the difference dealing with my debts is making. I don’t feel as stressed and anxious (until I start getting the calls and letters, which I know I can ignore).

With the money saved I will probably be able to get a car with my December pay or use November pay to purchase car and December pay for bankruptcy cost.

Bankruptcy income and expenditure section

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