selling a car

brovahelpa

My brother plans to go BR around the end of Aug & we're saving for the fees at the moment. He has a car, worth about 5 1/2K. Its uses a lot of fuel & he can't afford to run it anymore. If he sells it would the OR expect all the money to be handed over or could he use some of it for fees and living expenses. I paid for a cooker for him, could he pay that money back to me.
Thanks for any advise

peachyprice

As long as he sells the car at market value, can account for any money he spends with receipts and gives the OR whatever is left over he will be fine.

Angiepange

peachyprice wrote: »

As long as he sells the car at market value, can account for any money he spends with receipts and gives the OR whatever is left over he will be fine.

Hi
I sold my car at market value back in May (got paid in cash) as had lost my job so didnt need it and DH started new job with company van so have just been using his car.

just before this happened we were receiving advice from a debt advice co who had advised us to stop paying all our creditors while they negotiated with them for us (this never happened as they turned out to be useless!!) so we held onto the cash as an emergency fund for mortgage etc as i was now out of work and DH new job with less income. Didnt know then we would be going down the BR route.

We still have the cash which i plan to use some for BR fees, there will be some left over if we dont go and rent and need deposit etc, which i am fully prepared to give the OR. However we have used some of it to get through last 2 months living expenses as DH had to work a month in arrears. We are desperate to replace a couple of appliances that are on their last legs and kids are desperate for new clothes, I just dont know whether to spend it and then have the worry of a BRO/U or just keep every leftover penny for the OR?

Any help out there?

debtinfo

you will be ok if you spend it on aboslute essentials and keep receipts

EnslavedByDebts

Angiepange,

We needed a new washing machine and cooker just before my husband went bankrupt back in April. We used one of his credit cards to pay for the items and nothing was said. If however one of the appliances was a dishwasher then something maybe said as this isn't essential item as you could wash up.

Hope that helps.

Also if you buy clothes for children and keep receipts you should be fine with this. We were fine for a £2700 car paid on husband's credit card one month before he went bankrupt and we were lucky that they didn't take the car. But that was just us so a few clothes i am sure will be fine.

EBD

Angiepange

Thanks all for replies, we had been considering clearing our overdraft with it as didnt really want Abbey as one of our creditors esp as our mortgage is with them too but had read on here that would be favouring a creditor so that was a no go too!

Do you think its best to pay it all into the bank (we have another account now) and then spend it on essentials so it all shows up on statements or just pay cash and keep receipts? I thought if it was in bank then whatever is left can be taken by OR when we go BR.

Angie x

brovahelpa

Going back to my post. Can you tell me if my brother can pay me back for the cooker i bought him, or would the OR consider it to be paying a preferential creditor?

lisamummytoarchieplusbump

have you got the reciept for the cooker? even if it was used through your account then all he has to say is he gave you the money and you paid on your card?