Lease car in bankruptcy?

Keziah55

Hello All
My first post - though I've been watching for a while!
My son has his bankruptcy hearing in a fortnight. I've been helping him with his SOA and on-line forms.
A couple of queries - the forms talk about 'take home pay'. He has CSA payment deducted at source, also his contribution to his lease car is taken off before he gets his wages.
I'm not sure whether I should add these back in to his income so I can take them off again in the SOA?
Also - does anybody know how lease cars are dealt with? His company pay for a basic car, and he can upgrade by paying extra. He pays about £200 monthly. Apparently his company will not let people exchange cars - they have to see the contract out. He is in sales, by the way, so needs the car for his job.
Could I just say - although I haven't posted before, this forum has been an enormous support in helping us through this horrible time - so thanks to everybody.
I have to go out shortly, but will check back this afternoon.
Kez

blind-as-a-bat_2

Ok you should list the wage before CSA and the car,s deductions.

The lease is a tricky one, as the actual lease is in his employers name, so the OR cant force that to cease, but any contract he signed with his employers can be ended by the OR in BR, the only thing i can think he can do is to demonstrate its a needed expence to allow him to work and hope the OR agrees

Not sure on his chances though as ive not seen this scenario before

skylight

Does he pay anything else towards the car? If its the company's then do they pay petrol/MOT/insurance etc or does he have to cover this too????

Depending on the total overall cost, that may help the OR in their decision.

lxpeanut

I was trying to work this out when filling out the forms. I decided in the end to add it back on to my take home pay and put it in my outgoings then explain the situation to the OR. I haven't actually been to court yet so I can't tell you what the OR said. Would it be a problem if they cancel his contract and he has to have the basic car?

For me its not too much of a problem except my fuel costs would go up as I currently have a hybrid and would have to have a diesel. Also my tax would go up as its a benefit and paying a contribution means I don't get taxed as much.

Keziah55

Thanks for your replies.
The company pay all other car costs - insurance, tax, servicing, fuel etc. He just pays for petrol for private mileage.
Having a basic car would not be a problem at all, its that the company won't allow lease contracts to be broken because of the financial penalty - unless the employee actually leaves. I don't know if exceptions might be made.
A car is certainly essential to his job.
Kez

skylight

If his only cost then is the £200 for the car, then the OR may permit the expense as a car is essential to his employment. Your son can argue back that to run a car, insurance/mot/petrol etc would cost far more than what he currently pays. If the OR does accept this argument or agrees that its an allowable expense, then he may insist that the car is reduced to a basic one to keep costs down.

And the OR can cancel the lease if he wishes. Regardless of the companies opinion on the matter. The OR over-rides almost everything.

peterparker12

Sorry to bump this post but I am in exactly the situation. 

What happened in the end? did the official receiver allow the car to be continued paying?

luvchocolate

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