Thinking about going bankrupt but need my car

MissSB · 15 March 2018 at 10:20PM

Hi,

I owe about £23000 of unsecured debt to about 8 different debtors. I had an IVA that failed as one company wanted more money and I couldn’t afford it.

I’m now in an even worse position, I did have £295 surplus after the expenditure report I did on my IVA but I was receiving £250 a month from my boyfriend for help towards my rent. He has now lost his job (laid off from a building site) and can no longer help me. So I have £45 spare.

One of my worries is also keeping my car. It’s probably worth around £3800. It’s nothing fancy and needs a couple repairs but I need it for a number of reasons.
• to get to and from work
• travel between sites in work (work across 3 sites - soon to be 5)
• social anxiety, claustrophobia, anxiety and depression
• have a degenerative spine and sciatica
• recently had an op for a problem I’m still being diagnosed for which affects me and my ability to get around
• help care for housebound nan a few nights after work
• attend counselling appointments to battle depression and seclusion
• family live far away
• helping sister by picking up neice from nursery

I genuinely feel that without my car it would make my life so much harder than it already is. And I’m sure with the help I do for my nan she would be willing to buy out the OR if they decided to sell it. If that’s possible?

I’m putting off applying because I need to know what could happen. I’m in a bad situation money wise so want to be out of debt as soon as possible but still able to help myself and the people I care for hence the need for a car.

Thanks

KeepOnKnitting · 16 March 2018 at 8:43AM

It sounds like you have a very strong argument for being allowed a car. As you suspect though, the exact car you have may be more than the OR is willing to allow. However, if your Nan can buy the OR's interest, it should all be OK. Good luck.

National_Debtline · 16 March 2018 at 5:11PM

Hi MissSB

I agree it sounds like you could have grounds to keep the car. Usually if you can argue it is essential for work you will be allowed to keep it. There's more benefit to your creditors in you working and possibly entering into an income payment arrangement (IPA), than becoming unemployed because you don't have a car.

The value of your car suggests it's likely it would be sold and you'd need to buy a cheaper one. If you're not keen on that, you could discuss with the OR if your Nan could buy your interest in the car. It would need to be based on the market value.

Susie
@natdebtline

LincsPaul · 17 March 2018 at 8:37PM

Put up a couple of things and add some to use up that spare £45 - emergency fund, holiday fund, domestic expenses fund (when your kettle breaks) - all £10-20 each. Sometimes the OR will adjust things for you to help avoid an IPA, sometimes they won't.

Sounds like you have a good reason to keep a car but if the £3,800 valuation is right you'll need a lenient OR to allow you to keep that exact one. Most (but not all) will take it away and give you a grand back to buy a cheap runabout. Maybe tell them you need your comfy car for the spine issue?

Good luck with it all!

Thinking about going bankrupt but need my car

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