Cash in bank, car needed & prior to bankruptcy

TimeToMoveOn

Hi everyone,

I've spent quite a bit of time reading posts here and thanks for such a helpful resource for people facing such a potentially difficult time. I've looked for the answers to my questions by searching through the forum, but I could do with some advice, as I can't find the answer.

Firstly, my problems leading me to bankruptcy are property related, as I would imagine a few people have experienced lately. I have had property deals go bad on me due to lack of availability of finance for me and buyers. I've also had numerous problems with tenants not paying me on time, along with unexpected maintenance bills. Don't get me wrong, I am responsible for my own mistakes and I've made a few, but the "credit crunch" has compounded my weaknesses. Anyway, I have a couple of questions.

Firstly, I have a few thousand pounds in the bank which is nowhere near enough to pay off my creditors. Is there any way I can legitimately access some of this money or put it somewhere so I can use it after bankruptcy? I'm thinking can I buy supermarket gift cards, etc.

Secondly, should I continue to pay the mortgages on my buy to let properties? Are there any implications if I don't?

Thirdly, I currently have a car through a scheme run by a car manufacturer, because my Mother works for them. She is retiring at the end of September so I will have to give my car back. I see there is a limit of £2,000 on the value of a car. The problem I have is I need a decent car because I have just secured a fairly lucrative fixed term contract working for a company where I will need to drive quite a lot and I need a reliable car. I was hoping to use about £7,000 of the money I have in my account to buy a good car to use, but I expect this will be sold by the OR, will it? How about if I buy a car for £2,000 and then sell it just after bankruptcy and then borrow a car from a relative, paying them a reasonable amount every month? What would happen with the money from the sale of the car and would the amount I pay to the relative be allowed as an expense, along with tax, insurance, maintenance, etc.?

Thanks for any help you can give.

JCS1

TimeToMoveOn wrote: »

Hi everyone,

I've spent quite a bit of time reading posts here and thanks for such a helpful resource for people facing such a potentially difficult time. I've looked for the answers to my questions by searching through the forum, but I could do with some advice, as I can't find the answer.

Firstly, my problems leading me to bankruptcy are property related, as I would imagine a few people have experienced lately. I have had property deals go bad on me due to lack of availability of finance for me and buyers. I've also had numerous problems with tenants not paying me on time, along with unexpected maintenance bills. Don't get me wrong, I am responsible for my own mistakes and I've made a few, but the "credit crunch" has compounded my weaknesses. Anyway, I have a couple of questions.

Firstly, I have a few thousand pounds in the bank which is nowhere near enough to pay off my creditors. Is there any way I can legitimately access some of this money or put it somewhere so I can use it after bankruptcy? In a word, no. I'm thinking can I buy supermarket gift cards, etc. OR will see the money going out of your bank account and ask you to account for it. If supermarket gift cards, they might take them off you and sell them/or not allow you housekeeping on your SOA for x months. Failure to cooperate when asked might lead to a BRO/BRU.

Secondly, should I continue to pay the mortgages on my buy to let properties? Are there any implications if I don't?

Thirdly, I currently have a car through a scheme run by a car manufacturer, because my Mother works for them. She is retiring at the end of September so I will have to give my car back. I see there is a limit of £2,000 on the value of a car. The problem I have is I need a decent car because I have just secured a fairly lucrative fixed term contract working for a company where I will need to drive quite a lot and I need a reliable car. I was hoping to use about £7,000 of the money I have in my account to buy a good car to use, but I expect this will be sold by the OR, will it? Yes, they will take as an asset and sell. How about if I buy a car for £2,000 and then sell it just after bankruptcy If OR exempts your £2k car, you can do whatever you wish after. and then borrow a car from a relative, paying them a reasonable amount every month? OR would only allow reasonable running costs, and if they exempt the other car are then unlikely to let you have payments to a third party for a replacement so soon after. What would happen with the money from the sale of the car and would the amount I pay to the relative be allowed as an expense, along with tax, insurance, maintenance, etc.?

Thanks for any help you can give.

HTH a bit, please make sure you take advice from one of the free debt charities. Also try business debt line over your properties - are you sole trader or limited company?