Newbie..just starting out...need advice pls!

skintmumma

Evening All,

well Me & DH finally faced reality and went to see the CAB re our debts and they have recommended going BR.

So far i've spoken to the Co-op and arranged a new account and once the details are thru with that and dd's etc changed over we've been told to write our letters of payment offers to the creditors...but not really sure where to go from there!!
Once thats all sorted do we go back to CAB or take things on our own??

also the CAB advised that we 'sell' our car to a family member and rent it back from them so that its not taken away...we need the car for work and school runs so loosing that is not an option (its only worth 2k at most but is a 7 seater as we have 3 kids all in car seats that dont all fit in normal hatchbacks etc)
will this be frowned apon?? a few other threads i've read it looks as tho it will??

Sorry for so many questions, just really out of my mind worrying about all this!

thanks in advance for any advice!!

Rylynn

Not sure on the car, but I have read that if it is needed for work, and public transport would not be cheaper it can be exempt but that is not a definate from what I read.

I also wonder why the CAB have told you to consider selling the car to a relative, from what I have read here the OR would not be happy with your selling anything of that value, especially if you sell it for less than it is valued at. I can see the point of this, but not sure the OR will.

You may like to look at the top of this board and read the sticky threads on things as there are phone numbers you can phone to get more advice which I would highly recommend you do. You can in the meantime ring your court and find out if it is an appointment system, or simply walk in on the day. You can also ask for the forms to be sent to you again I would advise this was well, even if you intend to fill them in online, they are good to have in your hands, as you can read all that is asked on the forms.

And one section asks of any assets you have sold and to whom.

Hope that helps a bit but someone with more knowledge will be along to also help you.

Take care.

RL

dalip

Dont sell the car it may be seen as disposing of an asset. The OR ill check with DVLA so it may show there.Try looking on parkers guide to see what sort of value the car is. This will have bearing on if the OR will allow you to keep it or not,as will the fact that you need it for work.


If CAB reccomended bc i am at a loss as to why the suggested you write to creditors to offer a reduced payment unles you are not going bc for many mths.


Your nxt course of action would be to ring your local court to see what system they operate for bc. Some are drop in's(where they do bc all day and you just drop in when you can)others operate an appointment system which at the minute can be several wks way. Also ask how many copies of your SOA they require for each of you,as this can vary too. The fees for bc are £495 each wth some discount if in receipt of certain benefits.

I take you do not have a mortgage so check your tenancy agreement to see if there is a bc clause.

Stop paying all creditors as of now to save for your bc fees.


Any other questions you are not sure about fire away. You can find the SOA at www.insolvency.gov.uk and can do them online or by hand. If you do them online remember to save often as you never know when the computer wil freeze ect.

Dxx

On_A_Mission_7

Be careful selling the car pre-BR as it could be seen as disposing of assets. Instead you could declare it on the forms and with a value of £2K (check Parkers online price guide and tweak accordingly if you have higher mileage and whatnot) and think of some good 'essential' reasons for needing it and you may get an exemption. Even if the OR doesn't grant an exemption, you will be given 7 days to see if a family member can buy the car instead for you to use so either way, you stand a chance of keeping the car. That's what happened in our case anyway and that was only last week.

If you are planning on going BR, I wouldn't bother making any token payments to the likes of credit/store cards, overdrafts, mail order catalogues and such like. Just carry on paying the priority expenses like council tax, utilities and other things that will continue post-BR.

Well done on dealing with your finances, I found the hardest part actually admitting our financial position and then struggled to get my head around the prosect of bankruptcy but it really is the best thing we could've done for our family and are setting ourselves up for a much better future.

Although I'm sure you've received great advice from the CAB, I would still be tempted to talk it through with CCCS as we found their help invaluable and I always like to have a second opinion for peace of mind.

If you have decided to go with BR, give your local court a call asap as there can be a bit of a wait - I phoned in July or early August (can't remember now) and the first available date was 12th September! Some have even longer waits from what I've read on here. You can always postpone it for a later date if you're not going to be ready in time.

Why not have a go at you income and expenditure figures and put them up on here and we'll see if we can help in any way?

Good luck, believe it not, I think you've already done the hardest part.

dalip

OAM we crossed but at least we agree