Please Help, Advice wanted

INAMESS

Hi having been living at my parents in recent times and having a few loans and credit cards which i keep up the payments with (total debt approx £28K) they now want me out so i have had to find my own flat, the problem is after doing a budget sheet through national debtline and cccs i find that i only have about £50 max spare which would be nowhere near enough to cover the costs of my loans/credit cards/overdrafts, therefor it has been suggested that i could go bankrupt, i do have a car which is worth approx £5K and i realise that if i go bankrupt i will probably have to sell it but what i could do with knowing is if i would be allowed to have a cheaper car? The flat i intend on moving into is 5 miles from where i work and there is no direct bus, also i have a son i see twice a week who live approx 25 miles from where the flat is and there is no bus route to there either so would i be allowed a car for these reasons?? Any help or advice would be appreciated and if anyone has any other advice about going bankrupt that would be helpfull too, would they check what ive spent my money on, eg. if i bought a digital camera 6 months ago for £150 would they take that off me?? This is a sudden change in circumstances due to a breakdown of relationship with my parents. Thanks

antarctica

Hi, welcome.

If you work then yes you will be allowed a cheaper car.

They are not going to be interested in a £150 camera as far as I know.

A

maxmycardagain

firstly, check the actual value of the car, whats on a garage forecourt at £5000 isnt worth more than £3500 trade value and only £2500 to the OR after all the costs to snatch it and sell it, if you need it for work then a £2500 valuation may mean you get to keep it, or can make an offer to buy it off the OR.

INAMESS

Hi thanks for the replies, ive checked the value of my car on What Car and Parkers websites and it says approx £5500, i do not use my car for work but only to get to and from work (if that makes sense). As i said my new flat will be about 5 miles from work, would they expect me to cycle it rather than have a car?? Not having a car would also make life very difficult when trying to see my son so im desperate for some concrete advice on what an official receiver would do or say? Thanks

INAMESS

Hi again what i would also like to know is that if i move into my own place and then declare myself bankrupt (as it appears i will have to do because i wouldnt have an spare money for the creditors) would the O.R. refuse it just because ive over spent whilst ive been living at my parents? I have used credit cards for non essentials and yes it is my own fault that i have racked up these debts due to cars and over spending on other stuff or even using my cards for buying petrol etc, im worried and confused, how does the OR analyse or judge your past spending?? Any advice welcome please

tigerfeet2006

No you will not be refused. It is the judge who decides whether you are BR or not. As long as you have taken proper, professional advice and been told that BR is an option then you will have no problems.

INAMESS

Hi thanks you for replying, something else on my mind is that once i have moved out of my parents and into my new flat i will obviously need to buy stuff like bed, settee, drawers etc etc, would i be able to use my credit card to buy these items before i end up going bankrupt which is likely to be in a couple of months time or will the O.R. see this as me taking the P*** so to speak? Would they make me return these items or sell them? I have not much furniture i could take with me from my parents. Thanks

INAMESS

Hi can anyone answer the above message? Also i have been advised that i should get a solicitor if i decide to go bankrupt, i know i could do it myself but i want to make sure everything goes through ok, would people here advise a solicitor or not? If so can anyone suggest or recommend a good and cheap one? Thanks again

GettingHopeful

No need for a solicitor, just take the ND line and CCCS advise, get the forms and complete - lots of help on here if you need it. Book a court appearance and you're ready to go.

Following the court appearance, the judge signs the BR and then you talk to thhe Official Receivers office. They investigate the whys of how you went BR and that you have had to move out of your parent's will be a contributing factor increasing your financial problems. As for overspending, they have heard it all before and I doubt whether there will be any problems there. No problem with the camera.

The car - you are likely to be asked to sell that and get something cheaper I'm afraid. You may want to sell it yourself first, put some money upfront into the rent and deposit, (might need to sweeten landlord) and purchase a bit in the way of furniture, pay the court fees and purchase some cheaper transport. They won't expect you to cycle. Be ready to account for all the money you make on the car, purchase reasonable furniture, even second hand, and if there is any left, realistically, you might lose it.

Anyway, you will be fine, just work through the problems, we're all here to help.

consultant31

Look on Freecycle for furniture.

INAMESS

Hi thank you for the advice, very helpful, i have been told that selling your car and using money from that sale to fund deposits/furniture etc before declaring yourself BR could be construed (not sure ive spelt that right lol) as being fraud, is this true?? Am i best to keep the car for now until the process of BR is underway? Surely an OR will be suspicious of why ive sold my car or why i dont have all the money i made on my car available for them? Thanks in advance.