Employers and bankruptcy

gallygirl

Can someone plz confirm what I think is right - colleague thinking of bankruptcy (90k debt, v few assets). He's worried may be forced to sell car - however I believe as he needs it for work (+ 10000 business miles a year) they won't do this - am I right?

Addicted2Chocolate

if car is essential for work then he can claim it as an exempt asset. But there wil be a maximum value for an exempt car, in my area is £2,000. If car is over this the OR will instruct his agent to sell the car and from proceeds give bankrupt £2000 to buy a reasonable replacement.
Shouldnt his employer provide a car if he does that many miles?

ali007 wrote:

Can someone plz confirm what I think is right - colleague thinking of bankruptcy (90k debt, v few assets). He's worried may be forced to sell car - however I believe as he needs it for work (+ 10000 business miles a year) they won't do this - am I right?

paul10mm

Hi all
thanks for replys Yes we will be 100% honest there is no point not to be and wife would kill me if i told any lies to the OR!!
We are both scared to hell but there is no other way so its something we have to go through its already taught me the real value of money its taken us 8 months to save the money up and we have not used anything but a debit card since april last year so Hopefully we wont find it that hard to get use to. its an eye opener when you have to buget for everything monthley and you soon realise how much money you waste not just changing your insurance etc!!!
What i find amazing is we still had 25k that we could have spent on cards and we owe over 120k! when we finally decied to get of this wheel companys could not understand what we are doing as we never missed payments etc but i sold or house 18 months ago and moved them in to rented house the £41,000 i had left over all went to our lovely friendley credit cards and of course the ones i paid off just put my limit up!They are partly to blame if they had ever botherd to check what we owed!

kevker

I agree paul10mm. The examiner said roughly the same thing to me at my interview. He couldn't believe how much debt people were running up just on credit and debit cards, and he felt it was irresponsible of the lenders. He did also point out, that at the end of the day they don't force us to spend the money. Just to let everyone know as regards the original postings, I have 3 months left on my bankruptcy and an NT code still has not been applied to my salary. The company I'm making the IPA payments to have said this is getting to be quite normal.

gallygirl

Addicted2Chocolate wrote:

if car is essential for work then he can claim it as an exempt asset. But there wil be a maximum value for an exempt car, in my area is £2,000. If car is over this the OR will instruct his agent to sell the car and from proceeds give bankrupt £2000 to buy a reasonable replacement.
Shouldnt his employer provide a car if he does that many miles?

Assume if car worth more than 2k but loan on it means he has less than 2k equity he won't be forced to sell?
When joined were given choice of compnay car or car allowance - once choose can't go back in.

Thanks all.

Addicted2Chocolate

If car is on finance it is totally different. where a vehicle is on HP or lease the OR write to the finance compnay to confirm settlement figure, and if there is not a surplyus of at least £2K they will not adopt the agreement. Most finance companies then terminate the agreement, repossess the car, and any shortfall becomes a debt in the bankruptcy.
QUOTE=ali007]Assume if car worth more than 2k but loan on it means he has less than 2k equity he won't be forced to sell?
When joined were given choice of compnay car or car allowance - once choose can't go back in.

Thanks all.[/QUOTE]