Thanks!!

deedee_3

Well with my suggestions you will have no surplus income so you won't have to pay anything to the OR, this is called an IPA.

copier_guy

Thanks Deedee your a real star for replying.

To be honest I think i might be the best thing to do, the only thing that worries my self and my wife is she would loose her car, its used for the school run with three kids going to three seperate schools. it current value is around £2000 to £2500

deedee_3

There is a chance she could loose it but what you need to do is work how logistically you could do the school runs using buses, would it be possible and how much it cost. Then produce a letter to show how it would not be possible by public transport and would be necessary to do it by car.

Also it might be a good idea to get rid of the car and buy one of around £1000 and use the rest to fund the bankruptcy fees.

copier_guy

sadly the car is on HP so selling it might be difficult.

LilyBart

Hi copier_guy,
You need to have a look at your HP contract, as many of them have bankruptcy clauses which may or may not be acted upon. There was a thread about this subject last week - so a few pages back in the forum - posted by Hannah. Trouble is, assuming the contract isn't void after bankruptcy, you will have to make the payments out of any surplus income. At least, that's how I read it.
Lily

EDIT: I have no idea how to do links, but the thread is towards the bottom of page 7, and is called "Aaarrgh Noooo:("

copier_guy

Thanks LilyBart,

Had a good read of that thread, still not sure if we could keep it or not. Seems to be be two hurdles to get over, the first being the finance company saying its ok, the second being the OR saying its ok.

The weird thing is we are both more worried about the car than the house, the house can go, too many bad memories

LilyBart

I can understand that. Sorry to worry you, and I agree it's not cut and dried. Any friends or family members with unloved bangers in their back yards?

copier_guy

Sorry,

so many questions going through my head.

what is classed as income? I get my wages but my wife gets child benefit and working families tax credit, is this classed as an income and included in any IPA?

DON79

you have to include the tax credits and child benefits on the soa but for the purpose of calculating for an ipa, the child benefit does not count as income.

copier_guy

Thanks Don,

If i went BR in January but stayed in the house would until we found some were else do i still have to pay the mortgage while we still live in the house?

Sorry if it seems like a stupid question