Can the OR increase your debt?

ladymisswolfe

Here's one.
If my car is seized during my bankruptcy, it would incur a debt to my insurers. The reason being is that last month we had an accident and the old car was considered a total loss. Another car was purchased, BUT the terms state that you must continue to pay the rest of your insurance premiums until the end of the policy, which is OCtober for us, total about £224. You can transfer the policy to the new car, but even if you sold it you have to continue to pay.
Would he take this into account? Does that then devalue the car so far as what might be gained from it?

Thanks all

sieve

I suspect this would be taken into account in his calculation of whether to downsize should he decide you need a car. If he decides you don't need a car, it's rather academic as he would likely make more by taking the car and writing off the insurance premium (dependent on its value of course).

Do you have a case for *needing* the car or is it just a convenient thing to have?

ladymisswolfe

HI,
I think we can show a need. Although my husband doesn't use it for work - he's on a temporary contract until JUly, and then may need to look for work. Since we live in a rural area. transport links cannot give him the full range of opportunities. Taxis are very costly also. I also am on Incapacity benefit, and may well have a letter from my doctor stating reasons for needing the car.
Parkers give 5 values for it (!) and we've taken the middle one which is £1000. IT needs new headlight washers,(£50) and a new remote key (£100) as you have to set the alarm off to get in it LOL! Also the cd player may need fixing. Do you know how much their auction costs are ish?

skylight

Is the OR likely to take your car do you think? Is it over £2k? Do you work or a full time carer (full time Mum doesn't count... :mad:)

Yes - the OR can increase your debt. They do so anyway by adding their fees onto your BR total. Of course, its meaningless to you as the debts are incorporated into your BR estate and will be paid if there is ever any money realisable from that estate at any time.

The insurance debt would be included into your BR should the car be taken.

skylight

Cross -posted. You have a very good argument for keeping a car valued at £1k. Ensure you have worked everything out - bus timetables to prove they are unsuitable, costs for taxis, add costs for Tesco to deliver your weekly shopping etc. A letter from your doctors, and how many times a month you need to visit them (taxi costs).

Please bear in mind, that its not down to value alone for cars. An OR also needs to look at the overall cost for running a car, maintainance etc. So being on benefit and not having an income would be detrimental to your overall SOA (if you see what I mean).

ladymisswolfe

Thanks all that's really helpful!
Running costs are ok - I get a mobility allowance but my OH is also going bankrupt so alhtough we are naturally completing two SOA's, our income is similar and thereofre split down the middle.
MY OH cares for me, and as I can't go out alone, we need to double the cost of any bus transport used. Also my doctor would consider it detrimental to my mental health to be without independent means of travelling.
Also, any loss of emplyment for my OH would cause severe difficulties in finding a new job. We are 10 miles from the nearest small town, and job opportunites are very limited in Cornwall. Also many opportunites are rurally based. Oh well fingers crossed eh.
Thanks all!

skylight

Do you use your mobility allowance to pay for the "rental" of the car? Its therefore not yours and cannot be taken.

ladymisswolfe

Hiya,
No I don't think I could claim that. I'm the registered keeper of the car.