Bankruptcy/Car/Disability

kutiez2005

Hi All,

I am currently considering bankruptcy but want some advice from people that may have been in a similar situation to me.

I am in receipt of DLA as I am suffering a physical disability. Although my disability is not severe, it does mean that without a vehicle I am unable to go out. I also have 3 children that are in bulky car seats so need a car big enough to fit all of these in and I need to fit a tandem buggy and my walking aids in too. I expect you can see where I'm going with this one. I have an '03 toyota previa that could be sold for about £7000 & I'm guessing it's going to be taken from under my feet. My worry is being able to find a suitable car, within the price range I'm given and that will last for a while without the need to be repaired all the time because I won't be able to afford it.

I have looked into motability and although my DLA is most likely to be renewed as I haven't improved, there is less than 12 months remaining so I am not eligable.

Bankruptcy really is my only option and I know that it's my own stupid fault for using credit but I didn't know that I was going to become unwell and lose my income. I don't think I'll ever use credit again for the rest of my life!

money_penny_26

hi kutiez an welcome to the forum.i too am disabled on d.l.a.an i dont know all the answers but when i asked this question. i was told that you can put forward a case of if o.r.does take your car you would find life very difficult.you will want to say to o.r.that your car is a need as oppose to a want.that is what i am going to say anyway.keep posting an get more info,as for you saying you are stupid for getting into debt,well most of us here are feeling that way too.however like us all you are dealing with it an trying to find a solution, so good luck regards penny

kutiez2005

Thanks for your response. It's very helpful and reassuring to know others in similar situations. Let me know how you go with OR... & I'll let you know what happens to me if I get that far before you. Good luck for you too.
K

debtinfo

hi, just answered the other post without looking at this one. The rules say that a car may be exempted for a domestic need which you have so no problem there. The next part is that the car must be of a reasonable value. Normally about £2,000 is considered reasonable for most people. The OR has discretion to allow more depending on the need of the individual. If they do take the car then they should replace it with one of a lowere value. Point out to them your needs as you have stated above and they should provide a vehicle that meets your needs. Other examples of where this may apply are a taxi driver needs a car that stands up to the rigoures involved or a builder/plumber/electrician etc who needs to transport materials

Holes_in_my_pocket

I have a motability car and allowed to keep it ..

Holes_in_my_pocket

I understand what your saying but you have to remember the DLA motabilty is allowance for you to get around and unfortunetly not for you to transport your kids around. I am not sure how th OR will see this hopefully will be understanding and allow you to keep it

skylight

I don't think that you would have difficulty in arguing that you need a car - its just "that" car that I think you will find hard to keep, mainly due to its value.

A cheaper car (Less than £2k) should hopefully be acceptable to the OR.

You are allowed to sell your car before BR. As long as you sell it for its value and not "cheap" to someone. Then, you use £2k to buy another car, use some money for small minor expenses (Road tax for example), BR fees sorted but the rest should be in your bank account ready for the OR to take.

We have a Galaxy - ok, not as nice as a Previa, but has the space you need, and they are far cheaper.

skylight

Holes - the car is not a mobility one, so cannot be exempt for that (it wouldn't be her car if it were a mobility one).

OP - when is the soonest you can renew your DLA? Could you possibly hold off creditors and thus BR until then? I was thinking of renewing and getting a DLA mobility car instead as that would be safer than houses.

debtinfo

Here is the relevent section of the IS website


31.2.26 Provision of a suitable replacement Where a decision is made to replace an exempt vehicle with a cheaper alternative URL="http://www.insolvency.gov.uk/freedomofinformation/technical/TechnicalManual/Ch25-36/Chapter31/part2/part3/notes/notes.htm#7"]note 7[/URLthe official receiver should inform the bankrupt of the amount he/she is prepared to make available out of the sale proceeds. The official receiver has discretion as to the amount allowed for the replacement which should be sufficient for the bankrupt to buy a replacement vehicle which is suitable for his/her needs. For consistency between official receiver's offices a guideline maximum figure of £2,000 has been introduced. While official receivers may exceptionally exceed this figure depending on the purpose for which the vehicle is used, it should be adhered to as frequently as possible.

kutiez2005

It's not due for renewal until April next year so no way of holding out. Really need to get the wheels in motion this month.

I do like the Galaxy too. Does anyone know how long it can take to get money for a replacement if the OR decides to take it? Would I be better off doing it myself before filing? I'm worried about being stuck at home with no car for too long.

K

blind-as-a-bat_2

Had a quick scan of the thread, sorry if i missed it, but is your presant car on HP, or have you paid for it in full?

You make it sound as if it is paid in full, but just wanted to check.