Should he go bankrupt ?

young321 · 28 May 2015 at 8:40AM

Hi

So my fianc! and I are thinking that he may need to go bankrupt in order for us to free up cash just to live

So, he's got about £30k of debt through loans and credit cards and he currently hasn't got enough money each week to pay out for each credit card and other things like our car etc

We are getting married in August. We've asked ppl to give us money as a gift but if he went bankrupt would we then lose this money?

We have two children aged 10 months and 6 years. If he went bankrupt would we lose the car? We don't use the car for work

My main concerns are our family car and money received from wedding

Could we just sign car over to my name?

Any help greatly appreciated

Thanks

AndyBSG · 28 May 2015 at 9:40AM

From the limited info you have provided no one on here will be able to provide you with any advice.

Do you have a mortgage? What are the debts and the monthly payment amounts? How much money does he have after paying living expenses to service the debts each month?

For any real advice you'll need to post an SOA (https://www.stoozing.com have a template).

First step though would be to contact Stepchange and discuss the situation with them for some real advice.

young321 · 28 May 2015 at 1:17PM

Thanks AndyBSG - I shall get the details for Stepchange and ask my fiance to call them to discuss.

youngbuck2 · 28 May 2015 at 4:30PM

In terms of the money/car question:

-Yes, if he goes bankrupt and receives a lump sum/cash gift whilst undischarged (in the first year of bankruptcy), it is likely the Official Receiver (OR) will want the money handed over.

-Does the car belong to your other half? If the car is a reasonable value and not an extravagant purchase and needed for work/travel, then the OR will most likely allow him to keep it. If he has a £50,000 Porsche then it's a different story, but a regular family car should be fine.

luvchocolate · 28 May 2015 at 4:53PM

You have to prove a need for a car for expenses to be included in your s.o.a, and a car valued up to £1000

owlet · 28 May 2015 at 5:02PM

youngbuck2 wrote: »

In terms of the money/car question:

-Does the car belong to your other half? If the car is a reasonable value and not an extravagant purchase and needed for work/travel, then the OR will most likely allow him to keep it. If he has a £50,000 Porsche then it's a different story, but a regular family car should be fine.

It's not quite as easy as reasonable value. Most ORs will allow a car up to the value of £1000 . Some will stick to this limit & won't budge, others are slightly more flexible.
It also depends on whether you really need car eg. for work if you are not able to use public transport.

You can't just put the car in someone else's name - the registered keeper doesn't prove ownership. That person needs to have actually paid for it. The OR will look closely if they think you are trying to work round the system & can reverse any transactions of this nature.

mwarby · 28 May 2015 at 7:34PM

Depending on the gifts you might get, it might be possible to propose a lump sum IVA, this needs to be done carefully though(if it becomes your money, the creditors will want monthly and lump sum)

TheGardener · 29 May 2015 at 9:18AM

Given the very limited amount of information you have given its hard to help in any detail but:

Firstly he needs to get as much free debt advice as possible from the debt charities
You must avoid any financial links so his debt doesn't affect your credit rating - so no joint bank accounts or loans. If your fianc! goes BR and includes any joint loans you will become responsible for the full amount.
Any joint wedding gifts may well be considered an asset and it is very possible you would lose 50% of them - unless he uses it to pay the £700 odd pounds needed to pay for the BR petition?
Even a fugal wedding can be expensive - how are you paying for it?
Who does the car belong to? i.e. Whose name was on the bill of sale? If the car is his, then if it's not being used for work why do you need it? Also - if the car is on any kind of HP or hire/lease agreement in his name then the agreement would be cancelled by the car company anyway - they would expect the car to be returned.
If you own the car outright then you would only be able to keep it if it was worth less than £1000. A car worth more than that is likely to be sold and £1000 returned to him to purchase a cheaper car - assuming he can evidence a need (rather than want) for a car.

alastairq · 29 May 2015 at 5:30PM

If BR is to be considered a way forward, get your fiance to open one or two Co-op Cashminder accounts now.....[these are basic bank accounts...which will be all that will be acceptable during BR and afterwards........do not mention BR to Co-op, however, Co-op will allow the accounts to remain active during BR, [whilst Undischarged]and will allow internet access.]

This is an important part of preparation for dealing with the debt situation, regardless of how that is done.

[Basic bank accounts like Cashminder, have all the facilities of a regular account, apart from cheque books, and overdraft facilities]

Do this now, so that all your fiance's day-to-day banking is taken away from existing accounts.

This is standard advice at the outset, from all debt remedy charities, etc.

There is nothing to prevent you having a car during your partner's Bankrutpcy...because bankruptcy is a purely personal event.

But a car must be yours, and provably so. As mentioned above, the person listed on the V5c is only the registered keeper, not necessarily the owner, of the vehicle.

If the current car cannot be proven not to belong to your partner, then.....if your partner cannot demonstrate a need, [as mentioned above] it will be taken as an asset for the bankruptcy estate.

Therefore, if you particularly want a car, then go out and obtain one yourself, with only you paying for it.

Forget the wedding for now.....at the moment it is an unnecessary expense, in view of the circumstances.

young321 · 3 September 2015 at 11:48PM

I've posted below my now husbands SOA please can you advise on the amounts on this? I've also put where I pay for things

Household Information[/b]
Number of adults in household........... 2
Number of children in household......... 2
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 767
Partners monthly income after tax....... 972 do I need to put my income?
Benefits................................ 0 I get benefits
Other income............................ 0
Total monthly income.................... 1739

Monthly Expense Details
Mortgage................................ 537
Secured/HP loan repayments 0
Rent.................................... 0 I pay the rent at £505
Management charge (leasehold property).. 0
Council tax............................. 0 I pay CT at £83
Electricity............................. 0 I pay electricity at £40
Gas..................................... 0 I pay gas at £40
Oil..................................... 0
Water rates............................. 0 I pay water at £46
Telephone (land line)................... 0
Mobile phone............................ 40
TV Licence.............................. 0 I pay tv licence at £12.12
Satellite/Cable TV...................... 40
Internet Services....................... 0
Groceries etc. ......................... 260 I also pay £80 a month
Clothing................................ 20
Petrol/diesel........................... 20
Road tax................................ 2
Car Insurance........................... 45
Car maintenance (including MOT)......... 5
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0 I pay childcare costs
Other child related expenses............ 50
Medical (prescriptions, dentist etc).... 20
Pet insurance/vet bills................. 0
Buildings insurance..................... 13
Contents insurance...................... 0 I pay this at £21
Life assurance ......................... 0
Other insurance......................... 10
Presents (birthday, christmas etc)...... 20
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 30
Emergency fund.......................... 0
Total monthly expenses.................. 1112

Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 5000
Other assets............................ 0
Total Assets............................ 5000

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 137100...(537)......0 house currently rented out though
Total secured & HP debts...... 137100....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Credit card....................10000.....10........0
Credit card....................6000......5.........0
Credit card....................12000.....10........0
Overdraft......................1200......15........0
Store card.....................395.......0.........0
Personal loan..................11100.....225.......0
Car loan.......................12067.....10........0
Total unsecured debts..........52762.....275.......-

Monthly Budget Summary
Total monthly income.................... 1,739
Expenses (including HP & secured debts). 1,112
Available for debt repayments........... 627
Monthly UNsecured debt repayments....... 275
Amount left after debt repayments....... 352

Personal Balance Sheet Summary
Total assets (things you own)........... 5,000
Total HP & Secured debt................. -137,100
Total Unsecured debt.................... -52,762
Net Assets.............................. -184,862

tigerfeet2006 · 4 September 2015 at 8:42AM

You need to do the SoA so you include all household bills ie: mortgage/rent, utilities, CT, groceries etc.and then his personal expenditure ie: mobile phone, car and associated expenses etc.

You put his income down and the amount you contribute to the joint household expenses.

Should he go bankrupt ?

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